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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (94339)	11/6/2008 12:37:37 PM
From: thames_sider	Read Replies (1) \| Respond to of 541414

Funds from corporate bonds go to companies and help fund their activities. Or, the money goes directly to a private equity acquirer. The debt stays with the company, the money pays a huge dividend which may well have cover most if not all of the acquirer's costs. Funds from government bonds fund government activities... I'm not talking about other bonds, just corporate ones. in any case such restructuring is overall beneficial to the economy. How is it 'beneficial'? Please indicate how taking on debt, shrinking the company and shedding staff is beneficial - don't rely on creative destruction as a useful analogy. Maybe consider Chrysler as an example.