Very good post on finance

The Epicurean Dealmaker: The Rape of Persephone: Now that Mitt Romney is running for the GOP nomination for President, it seems everybody and his brother is taking a whack at the private equity pi�ata. James Kwak recently took his turn at bat, and James Surowiecki clocked a couple swings himself. To their credit, both of them do a halfway decent job describing the private equity model, but neither one can be characterized as a fan. Kwak fears that private equity is too tempted by lax and imperfect financing markets to loot the companies they buy and leave creditors and employees in the lurch, and Surowiecki is displeased that so much of the profit in private equity is subsidized by taxpayers. Both of their criticisms hinge heavily on the financial leverage commonly used in private equity investments, so it is worth reviewing the concepts and practices in a little detail.