Tuesday, January 27, 2009

Taxpayers Now Indirectly Financing Layoffs

I've taken a pretty hard look the past week at the Pfizer-Wyeth deal, partially because its the only thing representing normal market action (anything to take a break from bailouts and poor earnings reports). Anyways, I came across a very interesting take on the deal. Basically, Pfizer is cutting its dividend and acquiring financing to pull this deal off. Pfizer is also going to be laying off thousands of workers in the type of jobs that Obama is looking to add right now as a part of this merger. Where are they getting the money for the deal? Yep, you guessed it. Bank of America, Citigroup, Goldman Sachs, JP Morgan. And who is providing capital to keep these guys afloat? Yes, the American taxpayer.

Anyways, read this post...

Pfizer Buys Wyeth: Layoffs Financed by You and Me.

Post from EconBlog Review, found at Naked Capitalism.

Still long WYE

No comments: