Thursday, August 30, 2007

Subprime crisis and Alliance takeover

Y'know....

I've been wondering if this whole 'subprime crisis' that is affecting our markets was going to "touch" the Alliance Atlantis takeover by CanWest Global. Why? Because CanWest's aquisition of Alliance is happening because of Goldman Sachs Group Inc. (which has really pioneered the use of "commercial paper"....commercial paper, of course being the type of debt at the centre of the "subprime crisis"). In short, it's a leveraged buyout....the kind of buyout that accelerates debt....and who's on the hook, ultimately???

Well....the citizens (read: taxpayers) are always on the hook for everything.

So - the CRTC is stalling the hearings for the CanWest (Goldman Sachs) takeover of Alliance Atlantis to look at some of the paperwork that was late in being 'processed'...

I wonder if they're trying to figure out just how much "junk" is underwriting the borrowed bucks in this leveraged buyout....

Read the Financial Post article here....

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