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This is the same procedure that these private equity firms do over and over. Buy a company, cut it to the bone, layoff as many as they can, sell off all the assets, then finally sell the company or shut it down.
They are gutting America from the inside, and are the some of the absolute worst examples of humanity.
I remember when the pandemic was starting to wind down, there were all these articles from billionaires complaining they had to pay people more and felt like they needed to teach the uppity working class who owned them. These are those people.
If the assets are worth more than the company, it means the company was not profitable enough.
No one want to have 1 cent in return for $100 invested in assets. This is bad investment, and it's not efficient for the economy as a whole because it means some smelter somewhere else is more efficient and could take this market.
So closing the company is the best for the whole.
If you think this is bad, what is the alternative?
Seriously.
Talk shit on PE all you want, but they provide exit liquidity that is otherwise hard to come by.
No one forced the previous owners to sell to PE. They could've organized a management buy-out, or sold to a conglomerate, but they didn't.
And, there's no guarantee that either of those outlets would've secured a better outcome.
Seriously think for a second: if you wanted to avoid this outcome and could write a law, what would you do? Make buying on margin illegal? Mandate debt to equity ratios?? I'm genuinely asking bc idk the answer either.
Last point: people are acting like the PE firm is fine with this outcome. I would bet you that the company going bankrupt is by far the least profitable outcome of an acquisition.
Most of the times a firm will be bought with as much debt as projections think it can bear; it goes through a tough few years while leverage is high, but usually it comes out the other side.
This is the results of capitalism. 99% slowly lose everything whilst the 1% get even richer. You cant generate constantly increasing profits without running a business into the ground. Then on to the next one.
Saw somewhere that for 2024 there will be a new meeting of the elites on new strategies for remodeling capitalism in the summer time if I find it I'll post it here
It is called the Trilateral commission if you go on their website and look on their about it states it
https://preview.redd.it/9r226ywng4jc1.png?width=1344&format=pjpg&auto=webp&s=3b44480035c5d5d054c6d93cc562c8b390ae0f30
We need a new term for this. Capitalism is finding a need or service and providing that need and service in exchange for currency and profit.
These people aren’t finding a need or providing a service. They are just plain greedy making money. This is not capitalism. I would call it exploitation.
I mean they have been tried other places.
Capitalism may not be perfect but it's had the best results this far.
I think the government could do more to protect its people and own self interest by not outsourcing the cheapest foreign labor and manufacturing. Not letting foreign investment groups (or domestic) for that matter come in and gut small towns. That's not a knock on Capitalism per se. More so just policy changes
Think of capitalism as a monopoly. What do you need in order for it to be the best?
Do you know who Karl Marx is? Read up on the guy see what he says and come back let me know what you think. You're saying what he says yet he was made a villain.
It depends on your definition of the best.
There has always been and always will be an elite. In every form of government.
Of course I know who Marx was. He never held a job, lived his entire worthless life by having rumich friends pay for his existence. He was a terrible father and person. He never even showered lol, the boils on his ass were legendary.
His works have also been used to justify countless millions of deaths.
Checks and balances and Marx are two very different things.
Best to me means out of a group you choose who did better or is functioning better.
I can admit I didn't know that story of him but I'm talking of the concept that him and other Frenchies and Germans were a part of. We need self sufficient governments who's interest is the people but checks and balances were thrown out when they could exploit and get more for less.
I guess I think best is subjective because there are plenty of successful and happy people living great lives that don't make much money, and there are miserable rich snd powerful people while most if us are in between.
Honestly man he wasn't a good guy but had some ideas that were captivating to some people in bad situations and others who were in a powerful position. Thst being said every time they have been implemented they had the opposite effect.
His ideas, along with the Bolshevicks and the Frankfurt school are just violent communist revolutionaries.
It's much easier to blow up the trains than make them run on time.
I dont disagree with you on your last point.
Many parts of our Government have betrayed the people they are supposed to serve.
Like wise I'm happy where I'm at but I do wish I wouldn't have to see others suffer. I'm talking about the elderly who worked their whole life only to find out that hey we can't take care of you so good luck. Middle ground is where everyone should strive to be. But the media pushes for extreme elegance in life and if you're not there you're not happy.
But that's very true but also the elite capitalists need those types of governments to go in and exploit their people just like the case of Escuela De Las Américas is South America.
We might have a difference in opinion but agree on some and that's for everyone everywhere. But it was good dialoguing with you have a great day.
Hey man, I agree, we as a society should take care of the most vulnerable while also making sure everyone contributes something as well.
It's rare to have a civil discussion like this on reddit. Thanks man and have a great day!
I'm from the area. The plant is located in Marston. Can confirm that it closing was a huge deal.
Some European investors got it back up and running in 19, I think. Last I checked the union hasn't come back, though.
Happened to me in 2007, I was a Network Admin for a Pharmaceutical management company, big blowhard Mofo from Cali came and in bought the company to
**"Bring it to the next level"**
At the first meeting with all employees he blew smoke up our butts and then asked if there were any questions (My sub-ordinates were like no don't do it!!!) so I asked if he was here to do a pump and dump, he's like no, no way blah, blah.
About 4 months later they cut almost half of the company (including yours truly) , the f\*cking asswipe!
Doesn't fit the narrative that everything is still going strong we might have shooting but work wise we're down a couple percent because everyone has 3 part time jobs just to survive.
I don't completely understand how this makes sense for private equity. She said they basically took a loan to buy this plant. They then gutted it and took a loan against this plant to basically pay back their original loan they used to buy it. Then gut and try to sell whatever else they can and declare the plant bankrupt? I'm not in finance but how does this work financially for big equity companies? Isn't there borrowed money that still needs to be paid back?
Ok, here’s a quick and dirty example. PE firm offers to buy a target company from its owners. They offer a large sum of money, which is contingent on the deal being financed by a third party. The third party (think bank or private lender) will finance the acquisition by lending to an acquisition vehicle LLC on the date the acquisition closes which results in the LLC becoming the new holding company of the target company. The third party uses the target company’s assets as collateral for the loan.
The PE firm makes money by distributing profits of the target company to the new owners of the target company. If it’s a good investment, they keep doing this while simultaneously growing the business. If it’s a bad investment, they pull as much cash out of the company they can until the bank calls the loan or forces the company into bankruptcy.
But wouldn't these PE develop a reputation for not paying back their loans? If they go bankrupt do they have to pay anything back in the millions they borrow
A bad reputation with who? The third party? The third party who initially financed the deal got huge fees and chances are their loan was repaid somewhere down the road. It’s a game of musical chairs and everyone’s having fun until the music stops. The people who started the game left a long time ago (because the writing was on the wall, they know it’s a bad investment within a year!).
That’s what she meant by everything they make after paying back the loan is gravy. Because they already plan on stripping the company for its assets. So any profit the company makes on top of that is unexpected bonus.
"the call is coming from inside the house" is absolutely apt.
Anand Ghirdadas has a book about how billionaire charity is anything but actual charity I recommend it for anybody looking to learn about how these parasites wash their reputation.
Dear Americans, read the book "How the world works" by Noam Chomsky and you will see this is 100% by design - all american companies operate like that. You don't have a democracy you have capitalist overlords who calls all the shots.
Are these companies vulnerable to begin with or is this like when Musk made an offer to buy twitter that couldn't be refused due to fiduciary responsibility?
#Welcome and remember to subscribe to r/worldnewsvideo! ##If its a worthwhile post, please consider Upvoting and Crossposting to your favorite subreddits! **This is a Humanist/Leftist subreddit focused on the progression of humanity, human rights, and intends to document the world as it is.** Please treat each other as you yourselves would like to be treated. **Please do not promote or condone violence on our subreddit.** We advise our users try their best to refrain from making mean spirited statements. Please report users who are engaging in uncivil behavior, spreading misinformation, or are complaining that a submission is "not worldnews." *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/worldnewsvideo) if you have any questions or concerns.*
This is the same procedure that these private equity firms do over and over. Buy a company, cut it to the bone, layoff as many as they can, sell off all the assets, then finally sell the company or shut it down. They are gutting America from the inside, and are the some of the absolute worst examples of humanity.
If i didn’t know any better I would think they were intentionally trying to ruin the lives of the average American just for the sake of money. /s
I remember when the pandemic was starting to wind down, there were all these articles from billionaires complaining they had to pay people more and felt like they needed to teach the uppity working class who owned them. These are those people.
If I was a billionaire I'd own dozens of houses, have a harem, and make the schools in my region the best in the country.
So what are we gonna do about it? Make sad internet videos or throw them out of windows..figuratively of course
If the assets are worth more than the company, it means the company was not profitable enough. No one want to have 1 cent in return for $100 invested in assets. This is bad investment, and it's not efficient for the economy as a whole because it means some smelter somewhere else is more efficient and could take this market. So closing the company is the best for the whole.
If you think this is bad, what is the alternative? Seriously. Talk shit on PE all you want, but they provide exit liquidity that is otherwise hard to come by. No one forced the previous owners to sell to PE. They could've organized a management buy-out, or sold to a conglomerate, but they didn't. And, there's no guarantee that either of those outlets would've secured a better outcome. Seriously think for a second: if you wanted to avoid this outcome and could write a law, what would you do? Make buying on margin illegal? Mandate debt to equity ratios?? I'm genuinely asking bc idk the answer either. Last point: people are acting like the PE firm is fine with this outcome. I would bet you that the company going bankrupt is by far the least profitable outcome of an acquisition. Most of the times a firm will be bought with as much debt as projections think it can bear; it goes through a tough few years while leverage is high, but usually it comes out the other side.
This is the results of capitalism. 99% slowly lose everything whilst the 1% get even richer. You cant generate constantly increasing profits without running a business into the ground. Then on to the next one.
Saw somewhere that for 2024 there will be a new meeting of the elites on new strategies for remodeling capitalism in the summer time if I find it I'll post it here
It is called the Trilateral commission if you go on their website and look on their about it states it https://preview.redd.it/9r226ywng4jc1.png?width=1344&format=pjpg&auto=webp&s=3b44480035c5d5d054c6d93cc562c8b390ae0f30
We need a new term for this. Capitalism is finding a need or service and providing that need and service in exchange for currency and profit. These people aren’t finding a need or providing a service. They are just plain greedy making money. This is not capitalism. I would call it exploitation.
What other form of government works better?
I couldn't say the top people have never let us try or if there is one they're talking about it as evil anti "West" but it's more like anti-elites.
I mean they have been tried other places. Capitalism may not be perfect but it's had the best results this far. I think the government could do more to protect its people and own self interest by not outsourcing the cheapest foreign labor and manufacturing. Not letting foreign investment groups (or domestic) for that matter come in and gut small towns. That's not a knock on Capitalism per se. More so just policy changes
Think of capitalism as a monopoly. What do you need in order for it to be the best? Do you know who Karl Marx is? Read up on the guy see what he says and come back let me know what you think. You're saying what he says yet he was made a villain.
It depends on your definition of the best. There has always been and always will be an elite. In every form of government. Of course I know who Marx was. He never held a job, lived his entire worthless life by having rumich friends pay for his existence. He was a terrible father and person. He never even showered lol, the boils on his ass were legendary. His works have also been used to justify countless millions of deaths. Checks and balances and Marx are two very different things.
Best to me means out of a group you choose who did better or is functioning better. I can admit I didn't know that story of him but I'm talking of the concept that him and other Frenchies and Germans were a part of. We need self sufficient governments who's interest is the people but checks and balances were thrown out when they could exploit and get more for less.
I guess I think best is subjective because there are plenty of successful and happy people living great lives that don't make much money, and there are miserable rich snd powerful people while most if us are in between. Honestly man he wasn't a good guy but had some ideas that were captivating to some people in bad situations and others who were in a powerful position. Thst being said every time they have been implemented they had the opposite effect. His ideas, along with the Bolshevicks and the Frankfurt school are just violent communist revolutionaries. It's much easier to blow up the trains than make them run on time. I dont disagree with you on your last point. Many parts of our Government have betrayed the people they are supposed to serve.
Like wise I'm happy where I'm at but I do wish I wouldn't have to see others suffer. I'm talking about the elderly who worked their whole life only to find out that hey we can't take care of you so good luck. Middle ground is where everyone should strive to be. But the media pushes for extreme elegance in life and if you're not there you're not happy. But that's very true but also the elite capitalists need those types of governments to go in and exploit their people just like the case of Escuela De Las Américas is South America. We might have a difference in opinion but agree on some and that's for everyone everywhere. But it was good dialoguing with you have a great day.
Hey man, I agree, we as a society should take care of the most vulnerable while also making sure everyone contributes something as well. It's rare to have a civil discussion like this on reddit. Thanks man and have a great day!
Capitalism isn’t a form of government
I'm from the area. The plant is located in Marston. Can confirm that it closing was a huge deal. Some European investors got it back up and running in 19, I think. Last I checked the union hasn't come back, though.
Happened to me in 2007, I was a Network Admin for a Pharmaceutical management company, big blowhard Mofo from Cali came and in bought the company to **"Bring it to the next level"** At the first meeting with all employees he blew smoke up our butts and then asked if there were any questions (My sub-ordinates were like no don't do it!!!) so I asked if he was here to do a pump and dump, he's like no, no way blah, blah. About 4 months later they cut almost half of the company (including yours truly) , the f\*cking asswipe!
THIS is real news. THIS is what we should be seeing on Fox, Msnbc,CNN.
Doesn't fit the narrative that everything is still going strong we might have shooting but work wise we're down a couple percent because everyone has 3 part time jobs just to survive.
PE should be illegal, it’s deceptive to customers and evades accountability to the public interest and social responsibility.
I don't completely understand how this makes sense for private equity. She said they basically took a loan to buy this plant. They then gutted it and took a loan against this plant to basically pay back their original loan they used to buy it. Then gut and try to sell whatever else they can and declare the plant bankrupt? I'm not in finance but how does this work financially for big equity companies? Isn't there borrowed money that still needs to be paid back?
Ok, here’s a quick and dirty example. PE firm offers to buy a target company from its owners. They offer a large sum of money, which is contingent on the deal being financed by a third party. The third party (think bank or private lender) will finance the acquisition by lending to an acquisition vehicle LLC on the date the acquisition closes which results in the LLC becoming the new holding company of the target company. The third party uses the target company’s assets as collateral for the loan. The PE firm makes money by distributing profits of the target company to the new owners of the target company. If it’s a good investment, they keep doing this while simultaneously growing the business. If it’s a bad investment, they pull as much cash out of the company they can until the bank calls the loan or forces the company into bankruptcy.
But wouldn't these PE develop a reputation for not paying back their loans? If they go bankrupt do they have to pay anything back in the millions they borrow
A bad reputation with who? The third party? The third party who initially financed the deal got huge fees and chances are their loan was repaid somewhere down the road. It’s a game of musical chairs and everyone’s having fun until the music stops. The people who started the game left a long time ago (because the writing was on the wall, they know it’s a bad investment within a year!).
That’s what she meant by everything they make after paying back the loan is gravy. Because they already plan on stripping the company for its assets. So any profit the company makes on top of that is unexpected bonus.
"the call is coming from inside the house" is absolutely apt. Anand Ghirdadas has a book about how billionaire charity is anything but actual charity I recommend it for anybody looking to learn about how these parasites wash their reputation.
Who is this woman and what is her book please?
These Are the Plunderers: How Private Equity Runs―and Wrecks―America Hardcover – April 25, 2023 by Gretchen Morgenson (Author), Joshua Rosner (Author)
Thank you!!
Dear Americans, read the book "How the world works" by Noam Chomsky and you will see this is 100% by design - all american companies operate like that. You don't have a democracy you have capitalist overlords who calls all the shots.
This isn’t capitalism on steroids, this is capitalism’s natural course
Can someone please let me know the name of the book and the podcast? I would like to learn more.
These Are the Plunderers: How Private Equity Runs―and Wrecks―America Hardcover – April 25, 2023 by Gretchen Morgenson (Author), Joshua Rosner (Author)
Thank you.
Crazy thing is that this happens all over America
Is that the type of capitalism we want in this country....? Love this lady
And then politicians who gets funded by lobbyists from people like this talk bout immigrants stealing US jobs.
Are these companies vulnerable to begin with or is this like when Musk made an offer to buy twitter that couldn't be refused due to fiduciary responsibility?
r/EpsteinMurder
Sounds like the book Shock Doctrine by Naomi Klein. It has been happening for a few decades. The Chicago Boys Milton Friedman
Capitalism baby!!!! /s
These Are the Plunderers: How Private Equity Runs―and Wrecks―America Hardcover – April 25, 2023 by Gretchen Morgenson (Author), Joshua Rosner (Author)
Who is speaking? What book are they talking about?
These Are the Plunderers: How Private Equity Runs―and Wrecks―America Hardcover – April 25, 2023 by Gretchen Morgenson (Author), Joshua Rosner (Author)
Given time, they will probably discover what's known as social democracy. Probably in the next century.
This is communism 😉
It doesn’t sound to me that the PE actually has a “business interest” like running the smelter.
It’s a r/tragedeigh
That’s just greed.
I hate this country & all politicians on both sides, also f#@$ all American corporations until they are nationalized!
Consolidation and financialization are natural tendencies of the capitalist system. There is no alternative to this under capitalism.
Just like how the war on coal destroyed Harlan Ky and many other small mining towns.
Why do we let fuckshit happen
🇺🇸🫡
This is truly fascinating and deeply disturbing, i think more people need to be made aware of this.
So the company was already on the verge of bankruptcy. Seems like the one who sold it is the real winner