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After the Blackstone Group, a private equity powerhouse, beat back Vornado to take over Equity Office with a $39 billion bid, Blackstone quickly decided to sell most of Equity Office's Midtown Manhattan buildings without taking possession of all of them.
We also know, from the paltry levels of financing wealthy countries have put on the table, that it is going to steamroll over equity red lines.
Some economists have even raised concerns over equity among patients.
It's the tax code's favoring of debt over equity.
Third, there was little mention of the tax advantages of debt over equity.
The bias for debt over equity is especially troubling in the context of banks.
For example, the current code rewards debt over equity, leading to more leveraged companies and a more fragile economy.
It is short-termism and siloed decision making that lead us to choose consumption over conservation, exports over equity.
Two New York judges have just dismissed suits against various investment banks over equity research (see article): proving wrongdoing by a fund manager will be harder still.
Others, like accelerated depreciation or the tax code's preference for debt financing over equity, provide tax benefits for wide swaths of businesses.
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Small investors are fleeing the stock market in droves, favoring bonds and even cash over equities.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com