[awaythrow483]

Modern consumer brands have essentially nothing to do with selling consumer goods. They are financial vehicles for private equity to lever up on.

In a decreasing liquidity environment many of these schemes will blow up. They could have sold 100x more insta pots and it wouldn't have mattered, it's pure financial gambling under the hood

[dr_monster]

I’d like to read more about this, has it been documented or analyzed in any organized way via books/research, etc. that is available?

[bleepblop]

This is a good jumping off point.

https://www.npr.org/2023/04/26/1172179099/how-private-equity...

https://www.marketplace.org/2023/04/27/how-private-equity-cr...

[awaythrow483]

Roughly the things to look up are private equity and their "bust out" strategy

https://www.youtube.com/watch?v=z5PLEZiSZV

https://www.youtube.com/watch?v=r3_41Whvr1I

https://www.youtube.com/watch?v=o10nh86q64Q

https://www.youtube.com/watch?v=n7VmIy0VXOY

Buy a company with debt (leveraged buy out). Hand that cash back to the "private equity investors". Let the company go bankrupt and the debt magically dissapears.

Basically legalized theft at enormous scale

[dismalpedigree]

Agree. One of the most infuriating things we tolerate as a society. The number of good and solid companies adding value to society that have then been raided in order to line the pockets of a few is such a disgrace.