Great American Heroes

If you go to the gas station this weekend and realize you need to shell out a couple more bucks to fill your tank or go to the grocery store and come back with less change than you expected, just know that it is for the greater good. The capitalist system only works if great capitalists are allowed to thrive such as the ones highlighted in a Wall Street Journal article:

In the latest sign, HCA Inc., one of the nation's largest hospital operators, plans to use a specially formed company as part of a plan to pay a $2 billion dividend to its private-equity owners.

The payout plan is another indication of the dizzying heights in this year's junk-bond sales boom. Companies have raced to issue a record number of junk bonds and in some cases have provided less protection for investors than in the past.
The dividend, HCA's third this year, will go to private-equity investors including Kohlberg Kravis Roberts & Co., which trades as KKR & Co., and Bain Capital LLC. It will be financed through the sale of $1.5 billion in junk debt maturing in 2021 and the use of HCA credit lines.
Thank you Ben Bernanke. You are correct, QE II is already working.


Anonymous said...

I am sure KKR added a lot of value at HCA. With their deep knowledge of, um, medicine? Restructuring? Looting?

Tsachy Mishal said...

If you are 75 years old and not receiving enough interest. Get back to work lazy bones. This is America. You have to work for your money.