Extreme Money: Masters of the Universe and the Cult of Risk

9. Learning to Love Debt

Financial alchemy took the form of more and more borrowing, initially in the form of private equity and junk bonds. Private equity, originally called leveraged buyouts (LBO), was about high levels of leverage—debt. Investors, financial sponsors, committed a small amount of the capital required to buy a company. The bulk was borrowed and repaid from the cash flow of the acquired business. The game was buying low and selling high, with other people’s money.

Fixed Floor Coverings

Congoleum traced its origins back to the American Nairn Linoleum Company, established in 1887 in Kearny, New Jersey. The company manufactured linoleum, a durable floor covering made from solidified linseed oil, pine rosin, ground cork dust, wood ...