Vulture funds are even more disgusting than Wall Street casino banks

Aoxomoxoa said:
I was watching Newsnight on BBC2 earlier and they cited the case of a guy that bought up a debt of $1/4 million for $800 from the US government.
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Wow, and it isn't like the US government can write it off! Do you know how this practice got started and in how many places it is legal. Isn't there a huge risk with buying such debt? How else can it be used. Finance and investing has so many different aspects, it is so confusing.
 
Aoxomoxoa said:
I was watching Newsnight on BBC2 earlier and they cited the case of a guy that bought up a debt of $1/4 million for $800 from the US government.
Click to expand...

Wow, and it isn't like the US government can write it off! Do you know how this practice got started and in how many places it is legal. Isn't there a huge risk with buying such debt? How else can it be used. Finance and investing has so many different aspects, it is so confusing.
 
Rana said:
Wow, and it isn't like the US government can write it off! Do you know how this practice got started and in how many places it is legal. Isn't there a huge risk with buying such debt? How else can it be used. Finance and investing has so many different aspects, it is so confusing.
Click to expand...

It was made illegal in the UK last year but it is still legal in the Channel Islands which includes Jersey. Yes, there is a risk but they wouldn't do it if there wasn't a huge return if successful. In the case of the debt bought up for $800, the US government was about to write off the debt which explains how it was obtained for such a cheap price. The losers are the poor bastards in Africa of course.

http://www.guardian.co.uk/global-development/2011/nov/15/vulture-funds-key-players
 
I'm disgusted that we would sell these notes to people who would blackmail companies into giving them money when we ought to be doing it directly.......instead of selling them we should hire one of these guys to do it on behalf of taxpayers......
 
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