[Spike]

(03-13-2015 06:51 AM)scorpion Wrote:  

Quote:

On the surface, the $75,000 loan Magna offered seemed all right. It was in the form of an “8 percent convertible promissory note,” meaning it asked for an 8 percent return and gave Sason the right to convert it into stock. The fine print explained that if Pervasip didn’t pay back the money within six months, the lender could convert at a 45 percent discount to the market price. So, no matter where Pervasip’s stock was trading, the company had to give Magna shares that were worth more than $136,000—an 82 percent return in just six months. Essentially, Magna locked in a fixed return.

This guy is not an entrepreneur or a hustler who makes money through hard work, risk taking and providing value to others. He basically just found a fancy way to engage in usury by taking advantage of desperate companies. There's nothing admirable about this, it's pure financial parasitism. He contributes absolutely nothing to society. He's doing the financial equivalent of picking the pockets of dying men.

I have more respect for janitors and garbage men than I do for guys like this. At least the former make their money honestly and contribute value to society. The latter just siphon off wealth through various schemes like this. The fact that such parasites are continually lauded by the media and the general public is indicative of ours being a society that has lost both its common sense and its moral compass.

Come on man, Money is money. who cares where it comes from. I draw the line at physical abuse, that's it. All else is fair game.

[renotime]

This is essentially how Mitt Romney started his career.

Romney would take out loans to raid companies and then add on the loan to a company's existing debt, leading it to bankruptcy more often than not.

http://www.rollingstone.com/politics/new...l-20120829

[Simeon_Strangelight]

(05-09-2015 10:53 AM)Spike Wrote:  

Come on man, Money is money. who cares where it comes from. I draw the line at physical abuse, that's it. All else is fair game.

This anything goes mentality is what is destroying our current system:

https://jonrappoport.wordpress.com/2015/...globalism/
http://wallstreetonparade.com/2013/04/el...re-frauds/
http://wallstreetonparade.com/2015/04/wa...s-economy/


I have worked in the corporate world and felt unease even about certain useless products sold. And they are doing outrageous things like reverse mortgage for the elderly, criminal mortgage operations which resulted in millions of Americans becoming homeless despite being still able to make payments and have their homes. Some people were even evicted despite being on time with all their payments. The health system is criminal, so is Big Oil, Big Pharma, Big Agro etc.

Some of the most honest operators are the small and medium businesses - partly because they have to be and partly because they are not equal con-artists. There is nothing wrong in succeeding, producing a higher value more innovative product, but there are limits to it and violence can be perpetrated on many levels. You don't have to hurt someone physically to destroy him in the end.

[YossariansRight]

(05-09-2015 01:49 PM)renotime Wrote:  

This is essentially how Mitt Romney started his career.

Romney would take out loans to raid companies and then add on the loan to a company's existing debt, leading it to bankruptcy more often than not.

http://www.rollingstone.com/politics/new...l-20120829

^^Frigging guy's the real world version of Gordon Gekko.

[GetFree11]

I'm surprised the Rvf crowd would call this parasitism.

If this guy's deal was so lousy, it seems like a competitor would come in and offer a 30% discount on the stock instead of 40, or more capital in exchange for the right to less 40% discount shares. Since that did not happen, it seems this was the market rate for this sort of financing.