On Jul 21, 2007, at 10:52 AM, Rakesh Bhandari wrote:
> to what extent are buyouts pursued due to
> tax advantages from writing off debt, not just because cash is cheap
> and available?
The tax angle helps, but it's always true. It's just when financing is cheap and the manic psychology predominates that you get a wave of buyouts like we've had.
And I don't know exactly what this means, but it struck me the other day that asset-stripping buyouts were popular under Republicans Reagan and W, while the financial fad of the Clinton years was the dot.com IPO, which was wacky but still in some sense constructive.
Doug