Today, Robert Greenwald and Brave New Films launched a new film in their War On Greed series; Larry The Loophole. I co-produced and directed the project with Paris Marron from BNF.  In his mailer about the fun little animated expose of the private equity game, Mr. Greenwald said...

<blockquote>How is it possible for us to be entering a recession while buyout billionaires like Henry Kravis saved $96 million through tax loopholes in 2006 alone? That's just one buyout billionaire, in one year, making use of one loophole! Just think how much these private equity crooks are costing taxpayers who are already battling financial hardships and home foreclosures.</blockquote>

I was honored when Brave New Films asked me to work on their 'War On Greed' project. It was a real challenge to explain Private Equity financing in a way that was easy to understand and fun to watch. My posting here is just my opinion, though; I'm not speaking for Brave New Films.

The reaction of some people  in the financial community surprised me. They accused the video of being anti-capitalist and an attack on the free market. Some of them were pretty adamant about it and so my headline is a way of throwing their words back at them because I'm not sure what film they watched.

The video makes it clear that the Private Equity / Leveraged Buyout game is a creation of the government meddling in the economy on behalf of the ulltra-wealthy. When I say 'makes it clear' I mean the main character is named <em>Larry The Loophole</em> whose parents are 'a lobbyist and a politician'. Far from being an attack on productive people or companies that create wealth by creating innovative goods and services, the video explains an inherently corrupt system that uses the power of the state to benefit a few people without creating anything new.

The 'Free Market Bait And Switch' argument reminds me of a failed businessman a few years back. He managed to become part owner of a sports team and suddenly he got interested in politics because he wanted the taxpayers to buy the team a new stadium. He got the people in his city to actually raise their taxes. After a few years, he turned around and sold the team and the taxpayer funded stadium and pocketed the profits.

Who was this shining example of free market hypocrisy? George W. Bush, of course.

Here's the video...enjoy. And while you're at it, <a href="http://bravenewfilms.org/watch/21335607/37890?utm_source=rgemail">sign the petition!</a>

And here's the