T4PIn your following post i dont know whether your describing...

T4P

In your following post i dont know whether your describing the hedge funds or company management...

'Need to think in terms of "other peoples money"...

THEY effectively use the nations money to generate returns in niche products, the proceeds of which get farmed off into the back pockets of an elite few (in relative terms).

This has been going on for decades...and usually is not even noticed by the wider market, whos investments may collectively suffer an across the board negative impact of just 1% or so in value...nothing right?

lol...thats about 1% of tillions however...a nice little prize for some.

Such scams can survive with ease on the back of a healthy market, but when the shit hits the fan as we are seeing far too often lately, all these grubby little behind the scenes arrangements come to the fore.

The regulator is sleeping at the wheel, which he can usually get away with on those long straight stetches of nothing...but the first bend in the road usually brings it all undone.

We are seeing this now.

Cheers!'


By having almost 50% or more of their stock subject to margin lending arrangements the company management is also using the taxpayers money (i.e. taxes via tax deductions) to hold and run a company. The company also then borrows to the hilt using taxpayers funds i.e. tax deductions for interest. Company must pay dividends regardless of whether it is in the best interest of company and other shareholders (to finance margin lending interest). As a huge buyer in market of child care centres ABC has a lot of influence re price and govt policy. I.e. they benefit from 30% - 50% child care rebate. They put their prices up govt adjusts Child Care Benefit entitlement based on new average pricing.

They got into market in big way by paying more than a centre was worth in the earlier days and then when they had market share squeezed independents. At this stage of their business i.e. growing but near mature they can afford to pay market or below market value for other child care centres. If they capture 75% of child care market they have far to much of say in child care centre model including pricing, that affects all Australians (and Overseas countries) (all which they have created on borrowed funds and tax deductible interest - Other Peoples Money).

They went to big to early and got burnt. Stuff them. ABC management that is. If they cannot own stock and hold it in these scenarios, well they never really owned the stock..