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Financial Engineering 101

- borrow some money, use it to buy a company.

- transfer the debt onto the company. Now, somehow, you own the company but paid nothing for it.

- break up the company, sell off the parts, keep the money. The company goes bankrupt and the original lenders get nothing

- repeat. Bizarrely you can keep on doing this over and over again, people will still keep lending you the money!




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