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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Sun Tzu who wrote (43097)	11/13/2021 12:39:50 PM
From: ajtj99	Read Replies (1) \| Respond to of 97288

When I was young in business, I thought corporate bankruptcy was a way for hustlers and thieves to chisel businesses out of money. I ran across a lot of hustlers in my day, and they informed my thinking on this. As I got older, I learned that in spite of private equity and hustlers using bankruptcy to suck money away from others, it also enables businesses to take risks that they would not ordinarily take. With greater risk, there is the possibility of greater reward. There is also the ability of bankruptcy to wipe the slate clean and allow one to start over in business. It spurs innovation at a far greater rate than without it. For example, in South Korea, individuals were personally liable for their private company's debts regardless of the articles of incorporation. This leads to zombie companies and less innovation. Here, you can have something like Napster. It goes bankrupt, and you get Napster founder Sean Parker hooking up with Mark Zuckerburg, Dustin Moskowitz, and Eduardo Saverin to help grow Facebook into the behemoth it is today.