Two big bankruptcies, one common buyer

[Penner]

I’ve been saying this for years, Mitt Romney, and Bain Capital are truly Capitalist evil. They exploit the weaknesses of corporate governance to rape the stockholders and bankrupt the companies they “help.”

From what I have heard Romney's company is basically a vulture that comes in and picks apart failing businesses.

[Martin Hash]

I’ve been saying this for years, Mitt Romney, and Bain Capital are truly Capitalist evil. They exploit the weaknesses of corporate governance to rape the stockholders and bankrupt the companies they “help.”

From what I have heard Romney's company is basically a vulture that comes in and picks apart failing businesses.

It’s much worse than that. If that was all, the stockholders & bond holders would have at least got something back on their investment. What Bain did was use their 7% voting block to take out huge loans then pay the money to Bain with the intention to bankrupt the infected company.

[Fife]

If leveraged buy-outs actually worked, the company wouldn't need to be bought out in the first place.

But that is the point. Who is getting hurt here? These weren't healthy companies to begin with. They are privately funded bailouts and unlike the government when that Hillary falls no one is going to prop that bitch up. 26.7 billion for a bunch of radio stations? Yeah no shit you overpaid and over leveraged.

How many of us are old enough to have had a pre-Toys 'R' Us childhood? How about busting a gasket to get to the Christmas-season expanded toy department at Sears?

It was all Evel Kneivel and Six Million Dollar Man and Star Wars gear until Atari and Mattel Electronics came along.

And then how about hanging out at the mall record store as a teenager?



Times change; indeed they change.

How did Bain, et al, dupe people into the flaming-shit-bag-stomping they applied to the creditors of Toys 'R' Us and IHeartRadio? Who TF is that damn gullible?




https://pjmedia.com/instapundit/291540/
https://www.bloomberg.com/view/articles ... n-l-carter

[Fife]

The Real Reason Toys R Us Is Closing That No One Wants to Talk About: Birthrates

In other words, Americans just aren't having enough kids to justify the existence of that many toy stores.

Play out the low-birthrate factor and you'll realize that fewer kids over time equates to fewer consumers overall. Ten or twenty years from now we might see the same massive closures of the stores that are winning out over Toys R Us today. It isn't just that people are buying less due to the Great Recession. It's that there are fewer people to go out and buy anything at all.

What sort of IRL demographic projections are driving your long-term investment plans?