In 1970 it became the largest corporation to go bankrupt in US history(at the time). But just prior to this PC had been increasing hiring, and investing in new projects. The problem is the money behind this apparent prosperity was all loans for New York banks, who also happened to have board seats at PC. About a month before the impending bankruptcy the board was informed of Penn's situation. Remarkably shortly thereafter a large amount of their stock was sold, prior to public knowledge of the coming collapse. Who sold this stock? The banks who were seated on the board, but only after collecting their dividends based on the loans they had given that had given PC the facade of success.
If you haven't heard of Penn Central, you've certainly heard of the government run service branch for the railroads today. Amtrak. The operate at a yearly loss of billions, all guaranteed by the government in the form of taxes and bond sales.
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If you haven't heard of Penn Central, you've certainly heard of the government run service branch for the railroads today. Amtrak. The operate at a yearly loss of billions, all guaranteed by the government in the form of taxes and bond sales.
The enemy is first and always, central banks.