Toro
Diamond Member
This is what I mean when I said Taibbi is just a lying, angry, douchebag hack. That "provision" in the tax code allows every single other business in America to write off interest expense. Oh, but it's bad when Wall Street does it.
No, it's bad when Wall Street does it to loot companies by burdening them with debts they can't repay.
Yes. I agree with you. But that occurs a fraction of the time. You make it sound like this is commonplace. It's not. The default rate on high yield bonds and senior loans that are used to finance leveraged buyouts averages 5%-6% over time, meaning ~95% of the time, these companies never file for bankruptcy. It's rare.