Detroit News: A marauding band of hedge fund speculators were able to scalp an astounding $4 billion profit from a company that, under the rules of the free market and bankruptcy law, would never have seen the light of day after its original Chapter 11 filing. Indeed, just one of the investors, a so-called vulture fund named Elliot Capital, appears to have realized a 4,400 percent gain, or $1.3 billion, on its Delphi investment, which was made public in an IPO in the fall of 2011. The particulars of this case reek with the stench of crony capitalism. They powerfully illuminate how the Fed's boom and bust cycling of the financial markets wantonly showers ill-gotten wealth on the 1 percent.
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