By Bill Bonner – Bill Bonner’s Diary (USA)
First, as described here many times, fake money weakened the middle class, which shopped at Sears. The rich went to more upmarket retailers such as Neiman Marcus and Nordstrom. The poor went down to dollar stores and Walmart. Sears was left in the middle.
But the more interesting story concerns a Mr. Steven Mnuchin…
Mr. Mnuchin was on the board of Sears for the past 11 years, throughout its devastating decline. He is resigning now, letting the ship go down without him. Besides, he has already stolen the silver.
How do you destroy a business?
It’s not that hard. Rather than invest in new people and new methods, you take the money for yourself.
It is even more attractive if you can borrow a lot of fake money at ultra-low rates against the company’s credit… pay it out to yourself and other financiers… and then jump ship, leaving the company, its employees, and its creditors to drown in your debt.
That is what Mnuchin did. Here’s David Stockman: