The Yacht

I was posting on thread. Topic was on going fraud that is companies borrowing money at ZIRP to fund stock buy backs. Discussion turned to Macys, a retail giant of some repute. They have 7 billion in debt. I suppose in this era of ZIRP they are not over levered. Money is cheap. But if interest rates get back to historical norms then that debt, manageable now, will turn into a millstone for those stuck trying to keep Macys afloat. But by the time that happens the people running it now will be chilling on a yacht, a la Leonardo DiCaprio, in The Wolf of Wall Street. At one time they would have to leave country to enjoy the good life but seeing as nobody went to jail for MBS fraud in wake of 2007-8 implosion they will likely dock their boats in a harbour just out of reach of the crowd with the pitchforks that will be looking for their pound of flesh.





Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s