Re: unions, EO & privatization

[OWNCO@aol.com]

Good, Dan.  But why not try to get unions to invest in the establishment of a 
Capital Credit Reinsurance Company, to insure lenders of employee buyouts 
against the risk of default.  This would be a good substitute to overcome the 
classic collateralization barrier for workers with no assets.  The CCRC would 
be capitalized mainly with premiums coming from the risk premium portion of 
the debt service payments, which would ultimately be paid from enterprise 
profits.  Unions and foundations and rich guys like Gates would only have to 
put up enough money for covering insurance reserves.  The main point is that 
this is the most powerful way to leverage loan funds for leveraged ESOPs.  
For more on this concept, see Kelso's article, "Uprooting World Poverty: A 
Job for Business" in CESJ's book, "Curing World Poverty: The New Role of 
Property" and the second Kelso-Adler book, "The New Capitalists" (1961).  
Norm Kurland, CESJ, thirdway@cesj.org, for web site, click on <A 
HREF="http://www.cesj.org/";>CESJ Home Page</A>.