Shake Companies

Another feature of this dynamic has produced a rebound from the weight of capital investment companies. These new societies (hedge fund, private equity, private pension funds, sovereign wealth funds, etc.), whose purpose was to obtain quick liquidity and income to give more value to the shareholder (in the form of dividends) or the bondholder (by returning revenues from loans granted), and who came to impose minimizadoras patterns of costs and thinning of productive capacity and employment in their investment destinations. Short-term investments which require returns well above the average market profitability and that have been denatured and segmented productive entities through successive (of the parties more risky or less profitable of activity) outsourcing and contracting, sale of fragments of enterprises and trimming jobs. Or the same hollowing out of content of the business asset by artifice of financial engineering that have made it possible for these societies and investment funds credible exceptional tax privileges in Spain. With these ingredients, in Spain the balance of business balance was on a tightrope to deal with flows of return of their financial commitments, and therefore revenues should hold a guideline that, once began to slow down certain markets, hitherto booming, the solvency of increasingly more companies began to crumble. Moreover, in the Spanish case the imbalance intersectoral it has been more than obvious, and effect drag on auxiliary sectors did not wait.

Once is moderating the force of accumulation have been produced, by the financial leverage widespread and sustained in time, problems in chain. Just a little change of pace that a recessive circle of closures of companies opened to the limit and, consequently, a deterioration of conditions, rates and expectations of benefit. Shake first occurred in the viability of certain segments of the real economy to follow with a crisis of demand and the growth in delinquencies, affecting the financial sector, which had granted credit and created fictional banking money in an irresponsible manner.