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Tzale
Proud Libertarian Conservative
Premium Member
join:2004-01-06
NYC Metro

Tzale to KrK

Premium Member

to KrK

Re: Good news I guess?

said by KrK:

They will. They'll just wipeout their investors. They'll simply declare their old stock worthless, then issue new stock.

Companies can do things consumers can't. Consumers can't tell people they owe money too to get lost, never going to pay it back, no penalties. Companies can. They just reorganize and sometimes change the name slightly and act like they are a whole new entity with a clean slate--- except they keep the assets of the defunct company.

They're be some lawsuits, of course, but in the end Charter should discharge much of it's debt and get off pretty scot free.

Yep, told ya so:

"The cable television operator said last month it would restructure its debt under Chapter 11 bankruptcy protection on or before April 1 in a deal with senior creditors that wipes out common shareholders."

Isn't it nice? Tell the owners (stockholders) to go shove it, we owe you nothing, and we're never paying you back.

Imagine you could just call up your bank and say "By the power vested in me, by myself, for myself, effective this date, I owe you nothing, I'm keeping the house, car, land and all contents, and I get full deeds. See ya, wouldn't wanna be ya." Oh and with no penalties to boot. No credit damage.

To me this seems inherently wrong.

Sounds like capitalism to me.... Don't invest if you don't want to accept the risk.

KrK
Heavy Artillery For The Little Guy
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Tulsa, OK
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KrK

Premium Member

said by Tzale:

Sounds like capitalism to me.... Don't invest if you don't want to accept the risk.
Sounds like a scam to me. All you have to do is get people to invest, then you can make some really bad business choices and wipe them out--- and you don't suffer.

Tzale
Proud Libertarian Conservative
Premium Member
join:2004-01-06
NYC Metro

1 edit

Tzale

Premium Member

said by KrK:
said by Tzale:

Sounds like capitalism to me.... Don't invest if you don't want to accept the risk.
Sounds like a scam to me. All you have to do is get people to invest, then you can make some really bad business choices and wipe them out--- and you don't suffer.
Sounds to me like the investors who are being 'scammed' don't know what they are getting into.... Perhaps people should spend more time reading about how the stock market works? It's been this way for a long time... I don't want them to change anything now. Besides, if a company declares bankruptcy and their stock didn't immediately have no value, then it would pretty much by market forces from people selling immediately!

-Tzale
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