[Projectiboga]

It is a mix of tax loopholes. They can load up on debt, pull cash out. The big scam is share buybacks, they use the loans to by up their own stock. That was illegal from the 30a-80s, the Regan administration legalized it and it's been a race to the bottom. The other part is banks create money at multiples of their deposits. Fractional reserve lending. This creating money and then charging interest that isn't created is the root of this mess. They system worked well when there was fresh land and slaves to grab. It has continued w industrial growth. But now we are running out of oil to pump and other resources are starting to become scarce. This whole private equity is becoming a shackle on our economic system, almost 24% of the economy is controlled by private equity, and a chunk of that is carry forward profits which aren't taxed until withdrawn. They get to sell not pay capital gains and go into the next one. Good luck trying that yourself.