Mayfair Set (Documentary, 1999)
Produced, Written, Directed by Adam Curtis
#3 Destroy the Technostructure
This episode showcases how vulture like businessmen squandered money and power from the Government and established big corporations and transferred them to the stock market. In the process, in the name of enriching the stockholders, they also fattened their profits quite handsomely. After acquiring companies through hostile takeovers, they would sell off their assets, downsize their staff and just destroy the business altogether. That was their modus operandi.
1976 was not just the hottest summer in the UK, it also saw the fall from grace of the original Clairmont club members. James Goldsmith almost became bankrupt trying to sue a newspaper and subsequently left to the US.
He moved in to US at a time when the economy, under the leadership of Ronald
Reagan, was opening the markets. Power was transferred to the markets. This was a move away from FDR's philosophy of developing state controlled and big corporation controlled businesses after the 1928 collapse of the economy. Professional managers were appointed to man these corporations. Decisions were made by one man or board with very passive involvement from the stockholders.
An obscure banker from Drexyl, Michael Milken, initiated a new way of generating fast money by selling high yielding bonds (junk bonds). he initially got his money by investing the high risk business of casino in Vegas.
Goldsmith, in America, haughtily bought over lands belonging to Crown Zellerbach on borrowed money and destroyed the fiber of its assets and fired workers in the name of downsizing.
These raiders went on a rampage destroying every takeover with the sole intent of enriching the shareholders (sic). Soon these raiders were eyeing the monies in the pension fund. Since the junk bonds gave high yields, its managers felt morally obliged to be drawn into it.
Traders in UK also mimicked this trend. The old school method of doing business was brought down. Bankers were more powerful than leaders (politicians). All good things must end. Goldsmith with his grandiose plans tried to alter Kremlin, providing escape routes to defectors. Milken was convicted of insider trading and was imprisoned. Pressure mounted on Goldsmith by the bankers. In 1987, he sold everything and emigrated to Mexico, vowing to return.
Even though, the 1980s raiders' activities were curbed, their blueprint of activities is still around the world in various other names.
The irony is that the pension funds ended up being the beneficiary. Their managers used the same technique to invest in high yielding bonds for the benefit of its members. The same people who were cast aside by the raiders during downsizing were the winners in the end.
Produced, Written, Directed by Adam Curtis#3 Destroy the Technostructure
1976 was not just the hottest summer in the UK, it also saw the fall from grace of the original Clairmont club members. James Goldsmith almost became bankrupt trying to sue a newspaper and subsequently left to the US.
 |
| James Goldsmith |
Reagan, was opening the markets. Power was transferred to the markets. This was a move away from FDR's philosophy of developing state controlled and big corporation controlled businesses after the 1928 collapse of the economy. Professional managers were appointed to man these corporations. Decisions were made by one man or board with very passive involvement from the stockholders.
An obscure banker from Drexyl, Michael Milken, initiated a new way of generating fast money by selling high yielding bonds (junk bonds). he initially got his money by investing the high risk business of casino in Vegas.
 |
| Michael Milken |
These raiders went on a rampage destroying every takeover with the sole intent of enriching the shareholders (sic). Soon these raiders were eyeing the monies in the pension fund. Since the junk bonds gave high yields, its managers felt morally obliged to be drawn into it.
Traders in UK also mimicked this trend. The old school method of doing business was brought down. Bankers were more powerful than leaders (politicians). All good things must end. Goldsmith with his grandiose plans tried to alter Kremlin, providing escape routes to defectors. Milken was convicted of insider trading and was imprisoned. Pressure mounted on Goldsmith by the bankers. In 1987, he sold everything and emigrated to Mexico, vowing to return.
Even though, the 1980s raiders' activities were curbed, their blueprint of activities is still around the world in various other names.
The irony is that the pension funds ended up being the beneficiary. Their managers used the same technique to invest in high yielding bonds for the benefit of its members. The same people who were cast aside by the raiders during downsizing were the winners in the end.
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