Saturday, February 23, 2019

This Is What Is Wrong With Capitalism. A Complete Disconnect.

Mark Henson - Two Worlds
This story had me boiling. Venture Capitalists are going after your companies and their pensions. This is what they do. No need to hate them. We need to change the laws if we want them to change the way they do business. So just what is their business? Well mostly it's lending money to start up companies at least that's what most people tend to think. There is another side of the business though that isn't so rosy.

One of the business models however,  involves buying companies to steal their pensions and real
estate. I call this, living high on the tears of the people who's lives you destroyed. They then stay in business for a while longer with a hollowed out company that isn't worth anything and file bankruptcy. They get all their money back and your blood sweat and tears. You? Well you get nothing!  The sad thing is, you can't trust the Republicans with your Social Security and we can't trust Wall St. with our jobs, 401k's or pensions. Even if it makes you mad, do keep reading.

This venture involves a company founded in 1931 called Marsh Supermarkets which including it's convenience stores numbered in the hundreds.  Enter in Sun Capital inspired by Mitt Romney's old outfit Bain Capital. It is my belief that if allowed, unregulated capitalism would eat itself and die. But that's just my observation. Below are some excerpts from the story at The Washington Post.

For Sun Capital, this process of buying companies, seeking profits and leaving pensions unpaid is a familiar one. Over the past 10 years, it has taken five companies into bankruptcy while leaving behind debts of about $280 million owed to employee pensions.


Another excerpt below from: peter.whoriskey@washpost.com


Since bankruptcy law changed in 1978, Gotbaum said, “the business community has been inventing new uses of the bankruptcy courts. The private-equity community realized they could use Chapter 11 to do pension laundering.”

2 comments:

  1. A study was done and computed anyone could live a happy un-wanting life on about $75,000 per year, and anything beyond that should be taxed on an upward sliding scale...

    Call it socialism, which is what we need to balance the budget which is about 21 trillion, and Trump has really screwed people on their taxes this year as for the average tax-payer they lost about $100/month, and that alone will bring about socialist ways, like medicare-for-all, carbon-tax or get the axe, all for the lower and middle class that bare the weight of the rich and their wants, as trickle down economics is a lie, lie most of what the rich have to say...

    ReplyDelete
  2. One of the business models however, involves buying companies to steal their pensions and real
    estate. I call this, living high on the tears of the people who's lives you destroyed. They then stay in business for a while longer with a hollowed out company that isn't worth anything and file bankruptcy. They get all their money back and your blood sweat and tears. You? Well you get nothing! The sad thing is, you can't trust the Republicans with your Social Security and we can't trust Wall St. with our jobs, 401k's or pensions. Even if it makes you mad, do keep reading.

    Response: true as day is to night, spot on....the parsed phrasing equals

    Local gubbamint and code enforcement read spot on similar...make up a simple allegation, threaten you to vacate the premises...take all you worked for...all to keep bloated gubbamint bloated and ineffective...

    ReplyDelete

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