Vulture Funds

[KoKo]

Run time: 05:52 https://www.youtube.com/watch?v=Qbxj8azQb80   Posted on YouTube: February 27, 2007 By YouTube Member: GregPalastOffice Views on YouTube: 27814   Posted on DU: March 12, 2007 By DU Member: KoKo Views on DU: 530

 
Check Out Greg Palast's BBC Report on VULTURE FUNDS and their Influence on US and Third World. The Vulture Funds are already buying up United States interests and they won't stop...unless REGULATION comes from US House and Senate.

[ProfessorPlum]

1. What the heck?

Here's the part I don't get: How did "Goldfinger" suddenly own Zambia's debt? Who had the authority to sell him an entire national debt that is between two countries? Something's not right here.

[On the Road]

2. That's What I Didn't Get, Either

Palast is not explaining the process or exactly what the Vulture Group did wrong. This is pretty much the way all collection agencies work -- they buy debt at a discount and attempt to collect the whole amount.

Are these bonds bought and sold on the open market? I thought a lot of third world loans came from banks and other financial institutions. So did the VG approach the banks?

Personally, I don't think government debt should ever be sold like this because there are additional factors involved like the debt relief efforts and the resulting poverty, and because it's a foreign policy issue. I blame the governments of the lending countries that allowed this to be privatized. The guy may be a crook, but to me this practice falls under the category of legitimate but unpleasant businesses like buying tax sale properties or handling evictions.