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Fighting drought

The Briefing Room

00:00

Did the Newly Privatized Companies Have a Bad Record on Investment?

The balance sheets of the newly privatized companies were there to carry out investments. Instead, they basically mortgaged their assets. So they borrowed lots and lots of money, not for investment, but as loans. And it was exasperated by a phenomenal mergers and acquisitions jamberee. This happened on a huge scale, and the regulators failed to stop it.

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