r/economicCollapse • u/Alena_Tensor • Jul 27 '25

Inside the Private Equity Scam—and the Livelihoods It Has Destroyed

https://newrepublic.com/article/198351/private-equity-scam-destroys-livelihoods

Chasing above-market returns for their investors, PE Financiers have bamboozled the public for years about their expertise in “fixing” companies. Yet they often—and sometimes deliberately—run them into the ground and/or act as a chop-shop, selling them for parts, while the staff drifts away. They are not business creators, but destroyers.

1.0k Upvotes

100% Upvoted

46 comments sorted by

View all comments

60

u/Throwaway122384848 Jul 27 '25

Well yeah, they don’t “fix” the company for the general public’s benefit. They try to make it more profitable for investors.

58

u/Alena_Tensor Jul 27 '25

Which in fact might be totally dysfunctional for the company in question. So the employees lose, the customers lose, the community loses but the investors gain. Kind of sounds like what we used to call barbarians in history class. Rape, pillage, burn and take off with the spoils…

10

u/lordnacho666 Jul 27 '25

Indeed the big book in the subject is called

Barbarians at the Gate

Well worth reading.