$900 Million Payday Is Billionaires' Reward For Crushing Twinkie-Maker's Labor Unions

Tyler Durden's picture

Two days ago we reported that according to the new Chief Restructuring Officer of America's "first national supermarket chain", Great Atlantic & Pacific, also known as A&P, Superfresh and Pathmark supermarkets, which just filed its second chapter 11 bankruptcy protection in 5 years, it did so for one main reason: unions, and specifically legacy Collective Bargaining Agreements which made profitability for the (heavily levered) company impossible.

While that argument is debatable, and as we said "if it wasn't for unions, it would be something else, like loading up on massive amounts of debt to repay Yucaipa's equity investment, which would then be unsustainable once rates rose and once interest expense became so high it soaked up all the company's cash flow" one thing that is absolutely certain is that what A&P just did is a flashback to what Twinkies' maker Hostess itself did as part of its November 2012 Chapter 7 bankruptcy liquidation.

Then, too, the company sought to crush labor unions who "refused to negotiate in good faith", and as a result the company went bankrupt, thereby ending all of its legacy labor agreements once and for all.

Sure enough, freed of its cash-draining labor obligations, Hostess suddenly became a very attractive target and not only did it survive but it fourished when in 2013 Private Equity titan Apollo Global Management and billionaire investor C. Dean Metropoulos acquired the maker of Twinkies from liquidation.

Very shortly thereafter, the equity investors did everything they could to reward themselves for an investment in the newly labor union-free company, which was quite viable as a standalone entity because demand for its products was as high as ever (the US will never have a problem with lack of obesity) and tried first to sell the company and then to take it public. They were unable do achieve either, so they decided to take a third route, one which takes advantage of the unprecedented debt bubble.

As Bloomberg reports, "Hostess is selling $1.23 billion of term loans. Of that, $905 million will be used to pay a dividend to its shareholders, according to Standard & Poor’s. That’s more than double what they paid for the business."

Translated: after investing $410 million in March 2013, two billionaires are about to make a $500 million return an investment they have held just over two years, with the blessing of a whole lot of debt investors. And all they had to do was pick up the carcass of a company which did nothing more than crush its unions.

Somewhat snydely, we hope, Bloomberg adds that "the deal is just the latest example of how record-low borrowing costs from the Federal Reserve are encouraging risky companies to add cheap debt -- sometimes to enrich private-equity firms -- as investors clamor for yield."

Not sometimes: every time there is a bond bubble resulting from years of ruinous monetary policy and cheap rates, it is the equity backers who are left with all the profits. In this case, Apollo and Metropolous will make a more than 100% return over a holding period of less than two years.

They are not alone: "So-called dividend deals reached almost $16 billion in the second quarter, the most in a year, according to Bloomberg data. The downside of the loans is they can increase a borrower’s risk of default by piling on debt, without any of the cash going to improving operations or boosting revenues."

“Dividends aren’t designed to create value for the company,” Moody’s Investors Service analyst Brian Weddington said by phone. “This is a return of capital and profits to the founding investors.”

No, the value for the company, its equity sponsors will claim, came from their involvement, and indeed company operations did pick up modestly:

Business at Hostess has improved since the buyout. Earnings have increased “substantially,” said S&P’s Chiem. Revenue has risen to more than $600 million, and earnings before interest, taxes, depreciation and amortization to nearly $200 million, according to S&P. The snack business was able to cut costs by storing its products in a warehouse rather than delivering them directly to stores from where they’re made, according to Chiem.

Happy with their achievement, which was only made possible as a result of the unbundling of the underlying business from its labor union ties, barely one year after their involvement, the billionaire owners sought to capitalize on their investment and Hostess began considering a sale last year, with sources saying in November that the business could fetch as much as $1.6 billion.

The sale process went nowhere, as did a subsequent attempt to take Hostess public.

So, why not follow the path of least resistance, and present credit investors using "other people's money" with the chance to repay them. This is precisely what they did about to happen courtesy of Credit Suisse which is the lead underwriter on the new debt financing.

Credit Suisse is leading the financing, which consists of an $825 million first-lien loan and a $400 million second-lien offering, according to data compiled by Bloomberg. It has asked investors to commit by July 30.

But don't say the new creditors, secured by a whole lot of Twinkies and Ho-Hos in company inventory, did not put up a fight demanding fair terms: "At a July 16 meeting held at Credit Suisse Group AG’s New York offices, potential investors were offered treats including Hostess orange cupcakes, according to three people with knowledge of the meeting. They were also offered an interest rate of as high as 7.75 percentage points" above LIBOR.

End result: a company that went from 2x EBITDA leverage to an eye-popping 6x!

For Hostess, the deal will triple debt levels to about six times a measure of earnings, according to an S&P report this month. Regulators including the Federal Reserve and the Office of the Comptroller of the Currency said in their 2013 leveraged lending guidance that debt levels exceeding six times raise concern as they seek to curb risky underwriting.

The irony is that Apollo would have pulled out even more cash if there wasn't a leverage cap. Still, even with "only" 6 turns of EBITDA in debt, most know how this deal will end:

The dividend demonstrates “a very aggressive financial policy,” S&P analyst Bea Chiem said in the report. The credit grader is keeping Hostess’s corporate rating at B, or five levels below investment-grade, on the view that the baker’s operating performance will continue improving. The junior-ranked loan being marketed is rated CCC+, or seven levels below investment grade.

In short: we give Hostess about 1-2 years before it files Chapter 33: it third bankruptcy a first one in 2004 and the second one in 2012.

Only this time there will be no unions left to blame: it will be all about the insurmountable leverage, and the rapacious greed of its PE sponsors to strip the company of all pledgeable assets and extract as much cash as possible in the shortest possible time, while layering what the IMF would clearly dub is insurmountable debt.

But before you blame them, blame the creditors who made it possible: all those "investors" who were tempted with "Hostess orange cupcakes" to dump billions of other people's money entrusted to then, just so they could generate a modest return.

And before you blame these individuals who are merely looking after their year-end bonus which is contingent on beating some risk (or rather return)-free benchmark, blame the Fed whose 7 years of ZIRP has made this kind of asset strip-mining not only possible but an acceptable, daily occurrence.

Because the end result is clear: after the unions were crushed, and Hostess emerged with a clean balance sheet, the fact that it already has 6x debt guarantees it will be bankrupt once again. The only question is when.

The losers will be the thousands of non-unionized full and part-time workers at the company.

The only winners: the billionaire investors who are about to get even richer thanks to none other than the Federal Reserve and an entire world filled with lunatic central bankers who have clearly taken over the asylum.

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Occasional's picture

Simple solution to this: 

- Don't eat Hostess' crap.

- Don't participate in the bond offering. 

- Don't fail to educate yourself so you don't end up working in a food factory. 

Next!........

p00k1e's picture

We boycotted GM on principle, we ran them into BK and we bailed them out. 

p00k1e's picture

We saw the California dock worker strikes.

In the olden days they were called “Highway Men”.  

honestann's picture

This article deserves a prise:  I can't find anything to disagree with!  That's not like me.  Am I slipping?  Disclaimer:  I've never eaten any hostess product.

Kayman's picture

honestann:

My largest Rottie doesn't chew much-just swallows most things whole.  He swallowed a Twinkie a few years ago, sat down and upchucked it all back up again.  

But he did say it was good the second time around.

k

rejected's picture

Imagine,,, workers wanting paid for their skills and production. Golly Gee.

It's always the producers fault when the parasites gut a company.

It's even the producers fault when entire countries are gutted.

Only those managers are called public servants.

If those Hostess workers would have worked for $2 per hour than everything would be perfect.

p e r f e c t...

p00k1e's picture

Now we all chip-in to pay the Hostess workers to sit at home. 

p00k1e's picture

Wow, man, skills.

 

"

Chrysler Forced To Rehire Workers Caught On Camera Getting High During Lunch Break"
rejected's picture

Chrysler AGREED to the contract. Stupid yes,,, But they AGREED and did not comply.

And that is the unions fault?

Duc888's picture

 

 

 

.....I for one can't wait for the "Government" unions to go tits up.

GRDguy's picture

Pure control-fraud!

DutchBoy2015's picture
DutchBoy2015 (not verified) Jul 22, 2015 3:40 PM

When an American worker cheers his CEO who makes 500 times what he does , you know the people have drunk the KoolAid and their brains are mush.

All those union bashers must be into BDSM.

DutchBoy2015's picture
DutchBoy2015 (not verified) Jul 22, 2015 3:48 PM

''I hate unions''' cry  the fucktards whose brains are mush,

A nation with 50 million on foodstamps and more than that living off Creditcards and highly indebted and then try to push the total bullshit that their country is the richest nation on earth.   Fucking pathetic wankers.

''Coming from Northern Europe back to the USA is like leaving the Jetsons and returning to the Flinstones''  -quippe NYT reporter in 2011.

Truer words were never spoken,

JenkinsLane's picture

"Power concedes nothing without a demand. It never did, and it never will. Find out just what people will submit to, and you have found out the exact amount of injustice and wrong which will be imposed upon them; and these will continue until they are resisted with either words or blows, or with both. The limits of tyrants are prescribed by the endurance of those whom they oppress."

Frederick Douglass, August 4, 1857

withglee's picture

Translated: after investing $410 million in March 2013, two billionaires are about to make a $500 million return an investment they have held just over two years, with the blessing of a whole lot of debt investors.

This is just plain vanilla capitalism. If they were one of the blessed banks, they could have made a 4% spread with 10x leverage on the $410M for a 40% annual return. At 40%, capital doubles in a little less than 2 years.

Isn't capitalism neat? Long live capitalism.

Radical Marijuana's picture

"... lunatic central bankers who have clearly taken over the asylum."

Central banks are based upon governments enforcing frauds by privately controlled banks, which was due to the application of the principles and methods of organized crime to the political processes. EVERY political economy story has become an expression of runaway criminal insanities, because EVERYTHING is operating through fundamentally fraudulent financial accounting systems.

The longer term effects of successive increments of social success based upon being able to back up lies with violence are that those lies diverge wider and wider from relatively objective realities. Since the foundation of the entire political economy has become ENFORCED FRAUDS, while that force can never stop those frauds from still being false, the overall political economy devolves from being based upon triumphant organized crime, towards runaway criminal insanities. The best organized gangs of criminals are able to more and more capture control over the powers of governments, so that those governments more and more become the biggest forms of organized crimes, which serve the special interests of those who are able to dominate the FUNDING OF POLITICS, BY REINVESTING THEIR PROFITS FROM PREVIOUS FRAUDS IN MORE LEGALIZED FRAUDS.

It is literally the case that civilization has become an insane asylum controlled by the most criminally insane inmates. The driving source of that predicament is the series of short to medium term social successes based upon backing up lies with violence, becoming legalized lies, backed by legalized violence, through which the political economy becomes layer after layer of "legal fictions" or ENFORCED FRAUDS. The basic tragic trajectory of our current kind of civilization is final failure from too much success at controlling that civilization through being able to back up lies with violence. Overall, that drives civilization to become more and more psychotic, in the sense of more and more out of touch with relatively objective physical realities, due to the psychological situations being driven by adapting to the social situation being dominated by ENFORCED FRAUDS.

Central banks work like organized crime works. The historian Carroll Quigley was one of the people who best documented and demonstrated how the plans of the international bankers were implemented, which were manifestations of the ways that those bankers with the biggest gangsters, or the banksters. The existence of central banks is due to the history of the social successfulness of applying the principles and methods of organized crime to the political processes, to end up with the current situation where the public "money" supply is almost totally created out of nothing as debts by privately controlled banks, which effectively includes the various National Central Banks, which are the National Kings of Frauds, which are supervised, as Carroll Quigley stated, by the Bank of International Settlements, acting as the King of Kings of Frauds.

EVERY story that is developing inside of the current kind of political economy is based upon ENFORCED FRAUDS, and therefore, every development is another expression of the inherent contradictions that being able to back up legalized lies with legalized violence never is able to stop those lies from still being false. Therefore, the more socially successful the vicious feedback loops of the POLITICAL FUNDING, through the monetary and taxation systems, looping back again and again, become, then the greater the Grand Canyon Chasms grow between the ENFORCED FRAUDS versus relatively objective realities.

The excessive social successfulness of organized crime drives society as a whole to become increasingly psychotic. Therefore, it is funny because it is true, as well as terrible because it is true, to assert that civilization has become an insane asylum dominated by its most criminally insane inmates. The more one learns about that, the worse that gets. Not only is there almost nothing but a core of organized crime, surrounded by layers of controlled opposition, but also that means that almost all of the publicly significant opposition groups are also increasingly psychotic.

Failure to appreciate how and why governments have become the biggest forms of organized crime controlled by the best organized gangs of criminals follows through to failure to recognize that workers unions were alternative forms of organized crime, which could civilize and regulate the work place, by providing a sufficiently effective organized crime gang to resist the employers' organized crime operations.

The deeper levels of the basic problems are that human beings necessarily live as systems of more or less organized lies, operating robberies, as soon as we perceive them as separated from their environment. The moment we subtract human beings from their environment, by naming them, and telling stories about them, then that SUBTRACTION requires there to be ROBBERY across the boundaries defined by those subtraction processes ...

Every possible human story tracks back to human beings and human civilizations operating as entropic pumps of energy flows. However, there have developed intense paradoxes due to the greatest social successfulness becoming based upon the history of warfare that backed up deceits with destruction, that then morphed to become financial success based upon enforcing frauds. All private property is based upon staking claims and backing those up with coercions. There is no private property without some system of public violence. The most abstract expression of that is that money is measurement backed by murder. Any measurement is a relative subtraction, with murder being the most extreme manifestation of relative subtraction.

Those are the underlying realities regarding central banks being able to engage in central planning. Governments provide the murder, to back up the banksters' money. Governments demand payment of taxes in what they deem legal tender, and could kill anyone who resists. That legal tender is "money" made out of nothing as debts, as frauds which only have value because those frauds are enforced. Ex nihilio fiat money, issued by privately controlled banks is flagrant fraud, at face value, however, since it is backed up by the force of governments, those bursts of encoded electricity are supremely valuable. Those who have the privilege of controlling the computers which can engage in that kind of magical mathematics, whereby typing on their keyboards creates the public "money" supply, are thereby able to engage in controlling civilization through that kind of ENFORCED FRAUD.

As the Grand Canyon Chasms between the frauds and relatively objective physical realities automatically get bigger and BIGGER, at an exponential rate, due to the inherent structure of that DEBT SLAVERY SYSTEM, the numbers it generates become debt insanities. However, those who are positioned closer to the SOURCE of that public "money" supply being created out of nothing have the greatest ability to take relative advantage of that, which then enables them to REINVEST SOME OF THEIR PROFITS IN FRAUDS THROUGH THE POLITICAL PROCESSES, IN ORDER TO LEGALIZE MORE FRAUDS.

Overall, the processes of wiping out labour unions is due to the best organized gangs of criminals being able to wipe out lesser organized gangs of criminals, in the general context where there is nothing else which actually exists than the dynamic equilibria between different systems of organized lies operating robberies. The political processes are primarily negotiations between different organized crime gangs. However, the tendencies towards the dominate gangs' excessive social successfulness, based upon ENFORCING FRAUDS (such as the legalized counterfeiting of the public "money" supply) eventually causes those systems to become more and more UNBALANCED!

Today, the established systems of ENFORCED FRAUDS have become UNBALANCED to ratios about 100 to 1, and therefore, are headed rapidly towards becoming UNBALANCED to ratios of 1,000 to 1 ... Once upon a time, many different privately controlled banks were diversely responsible for collectively creating the public "money" supply out of nothing as debts, which then "paid" for strip-mining the planet's natural resources. However, since the financial crises of 2008, the central banks have more and more stepped forward to take over more and more of the responsibility of creating the public "money" supply out of nothing as debts, in ways which have become more blatantly obvious to more people. (Which is becoming more and more problematic, due to the real limits of diminishing returns from being able to continue to strip-mine the planet at exponential rate.) However, the basic systems have been ENFORCED FRAUDS for a long time before that, but back then, their exponential growth started out slower at the start, while their doubling downs now are becoming increasingly flabbergasting ENFORCED FRAUDS. Generally speaking, more people are noticing that now than ever before, but that noticing continues to still be mostly done in relatively superficial ways, which then, in turn, tends to be expressed as proposing relatively superficial "solutions" to those problems.

Many of the previous comments upon this article promote various superficial union bashing views, which partially are correct in perceiving that unions were their own forms of organized crime. However, most of those superficial views did not penetrate deeper, in order to perceive the bigger picture, that governments have become the biggest forms of organized crime, which are controlled by the best organized gangs of criminals, which are the biggest banksters, and the businesses that have grown up around those banksters' ENFORCED FRAUDS becoming the SOURCE of the public "money" supply.

Overall, there are much more profound problems with our political economy than are ever publicly admitted or addressed, by either the core groups of organized crime, nor their surrounding controlled opposition groups. To express that most abstractly: human beings and civilizations necessarily operate as entropic pumps of energy flows, that necessarily most matches the principles and methods of organized crime. However, due to the social successfulness of backing up lies with violence, becoming integrated systems of legalized lies, backed by legalized violence, the entrenched systems of ENFORCED FRAUDS are presented in public in the most absurdly backward ways. Therefore, the concept of entropy itself was inverted, by an arbitrary minus sign inserted into the entropy equations of thermodynamics and information theory, in order to enable that progress in physical science to continue to be presented in ways which were consistent with the biggest bullies' bullshit social stories.

News stories such as the one above are primarily about how the best organized gangs of criminals are able to wipe out lesser gangs of organized criminals, i.e., billionaires, with the banksters' blessings, being able to profit from destroying unions. Meanwhile, the vast majority of people do not understand that in any deeper ways, because they have been conditioned to not want to understand that. At face value, it is painfully obvious that private banks creating the public "money" supply out of nothing as debts for everyone else is a FRAUD. However, that form of legalized counterfeiting is ENFORCED by governments, due to the long history of the applications of all the methods of organized crime through the political processes, particularly through the vicious spirals of the FUNDING OF POLITICS BECOMING THE REINVESTMENT OF SOME OF THE PROFITS FROM PREVIOUS FRAUDS INTO LEGALIZING MORE FRAUDS.

AROUND AND AROUND WE WENT: The prolonged social successfulness of those projects based upon organized crime drove civilization as a whole towards becoming more and more criminally insane, since society as a whole becomes more psychotic, the more that it is controlled by Huge Lies, backed by Lots of Violence, since those Huge Lies never stop being LIES, but nevertheless, become more and more the dominate social stories, despite that those LIES grow to be at greater and greater variance with the relatively more objective actual facts.

The ability of privately controlled banks to create the public "money" supply out of nothing apparently violates the first law of thermodynamics and information theory, namely, the conservation of energy within which is included the conservation of matter. Of course, the conservation of energy is NOT actually being violated, when one includes the ways that those FRAUDS ARE ENFORCED.

While some people perceive that, almost nobody perceives that the banksters' bullshit has also been violating the second law of thermodynamics and information theory, namely, the increase of entropy. (Not by literally violating that, the same as not by literally violating the conservation of energy, but by perceptual violations of those laws of nature, in the senses of ignoring or perverting the perception of those laws of nature.) Abstractly speaking, the ways that the banksters' ENFORCED FRAUDS appear at first glance to violate the law of increasing entropy is hidden from most people, because of the degree to which they continue to take for granted misunderstanding the concept of entropy itself in totally inverted ways.

In general, that ENORMOUS ERROR is related to taking for granted even more basic errors with respect to philosophical presumptions regarding time and space, and so, profoundly mistaken attitudes towards the distribution of energy through time and space, which is entropy. Even more abstractly, that relates to the ways that people generally misunderstand the subtraction processes in the most absurdly backwards ways, which were the ways that the biggest bullies' bullshit stories have been promoting, and which therefore, sustain the world view of the banksters, which are currently the biggest bullies. What the biggest bullies, the banksters, have done is dominate the natural languages that people use, as well as the philosophy of science that people presume, so that the banksters' bullshit has SUBTRACTED THEIR SUBTRACTIONS, in ways which practically nobody recognizes has been done, but rather, in ways which almost everyone totally takes for granted. I repeat a quote previous published on Zero Hedge from Cognitive Dissonance that sums up how that works: "The absolute best controlled opposition is one that doesn't know they are controlled."

Ironically, therefore, more radical truths are to go through the processes of subtracting the subtraction of the subtraction. Or to express that another way, the banksters' have negated their negation. Namely, they are engaged in ENFORCED FRAUDS, but are able to publicly present that as somehow being positive things to do. Therefore, more radical truths are arrived at by negating the negation of their negation, because that then returns to what was actually always the case.

Overall, it is almost impossible to exaggerate the degree to which our civilization has become runaway criminal insanity! That runs throughout not only the core of ENFORCE FRAUDS, which have to automatically continue to double down, in order for that system to keep working (while there are relatively objective limits to the natural resources which can be strip-mined, to be "paid" for with that "money" made out of nothing), but also runs just as thoroughly throughout all of the controlled opposition groups.

The basics are that human beings operate as entropic pumps of energy flows, which necessarily match the principles and methods of organized crime, which is why both unions, and the banksters, are different kinds of organized crime gangs, and how and why the best organized gangs have been able to wipe out the less well organized gangs, which kind of social success actually drives the overall society to become more and more UNBALANCED.

Typically, most people only focus upon isolated aspects of the ways in which human beings operate, as soon as we define them as separate from their environment, as entropic pumps of energy flows, or as different systems of organized lies operating robberies. The parable of the seven blind men touching different parts of an elephant, to then state what that elephant is like, depending upon the part that they touched, comes to mind. Therefore, many people who commented above tended to focus upon unions as being bad due to those being expressions of organized crime. However, that does not address the bigger picture that unions were forms of organized crime which could counter-balance out other forms of organized crime.

Overall, the ways that our civilization has become an insane asylum controlled by the most criminally insane inmates is expressed by the ways that social successfulness currently depends upon maintaining attitudes of evil deliberate ignorance towards the basic laws of nature, as well as deliberately misunderstanding in the most absurdly backward ways the basic laws of nature, which is expressed as how the public "money" supply works. Our society does it best to deliberately disregard the principle of the conservation of energy, and to deliberately misunderstand the increase of entropy. That is necessary, because the established sociopolitical systems are primarily based upon ENFORCING FRAUDS, which was necessarily due to how natural selection pressures drove the development of the existing artificial selection systems. However, those systems are automatically becoming much more severely UNBALANCED. One of the reasons for that are the ways that the most criminally insane inmates are controlled the insane asylum, while surrounding them mostly are similarly insane alternatives.

More and more the biggest and best organized gangs of criminals are able to get away with publicly presenting themselves as the "good guys." Similarly, most of their controlled opposition groups also stay within the same, basically bullshit, frame of reference regarding everything. Hence, we have sterile and irrational public "debates" between the various different kinds of organized crime gangs. For instance, as expressed in many previous comments above that attacked unions, while then saying nothing about the results that bigger gangs of criminals would even more be able to get away with their crimes.

Overall, the deeper issues are that there has been prodigious real progress in physical science, without any surpassing progress in political science. Therefore, while human beings have been able to develop much better understanding of natural laws, such as discovered through the mathematical physics of thermodynamics, information theory, quantum mechanic, and the special theory of relativity, etc., the basic problem with political science was that the only connection between human laws and natural laws was the ability to back up lies with violence.

Therefore, the basic nature of the existing integrated systems of legalized lies, backed by legalized violence, whereby the frauds of privately controlled banks are enforced by governments, is not well understood, and is not desired to be better understood, by both the banksters, and their political puppets, as well as the masses of muppets, all of which have been living inside of those systems for their entire life times, indeed, for generation after generation ... Therefore, the Grand Canyon Chasms continue to get bigger and BIGGER due to the social successfulness of ENFORCED FRAUDS depending upon the vast majority of people deliberately ignoring, and deliberately misunderstanding, the most basic laws of nature, as those laws of nature are expressed through human nature.

Therefore, without series of intellectual scientific revolutions, that would apply to political science in general, and to the combined money/murder systems in particular, then the ways that "lunatic central bankers who have clearly taken over the asylum" must automatically continue to become even more criminally insane, since everything is actually based upon the principles and methods of organized crime, which have required the vast majority of people to adapt to accept that, by deliberately ignoring and misunderstanding the laws of nature in the most absurdly backward ways possible.

Every news story about how the best organized gangs of criminals have been able to wipe out some of their lesser opposition results in extrapolations of the established systems of organized crime, operating through ENFORCED FRAUDS, becoming even more UNBALANCED. However, the only realistic mechanisms to attempt to muddle through that MADNESS, to better balance those systems, would require profoundly changing paradigms, with respect to how we perceive human beings and civilizations to be operating as entropic pumps of energy flows, in the manner that my comment above has outlined, which could be regarded as another attempt at promoting social psychiatry, (albeit, which currently appears to be politically impossible, given the on-going deterioration of the kind of classic Bedlam, of the insane asylum civilization that we are actually living inside of now, where the most criminally insane inmates are in control, and their apparent opposition is also mostly insane in similar ways)

Fahque Imuhnutjahb's picture

Owww, that hurt my head, I agree with the parts I understood.  I think this link supports your assertions, but in a nutshell.   http://www.washingtonsblog.com/2012/08/as-many-as-12-million-americans-a...

Radical Marijuana's picture

Yes,

I already read the article you linked.

That also relates to ponerology:

http://www.ponerology.com/

However, I regard that approach as too psychological, without enough background evolutionary ecology.

DutchBoy2015's picture
DutchBoy2015 (not verified) Jul 22, 2015 4:34 PM

I don't mind getting paid peanuts to work hard , as long as my CEO is making 500 times as much as me.

Takes a big swig of Kool Aid.

You know we all have a chance of becoming a CEO also just like him,

Ain't this a great country???

I don't mind working overtime for straight pay even though 50 percent is taken out for taxes.

My CEO works hard playing golf everyday and fucking his secretary,

yes I have to beat my kids a lot because they are always whining they are hungry,

But shareholders are much more important and they work hard .

>>>>>>>>>>

This is the stockholm syndrome mentality here of the fucktard union bashers.  Total RETARDS who deserve to be debt slaves,

 

honestann's picture

Of course humans deserve to be treated and paid fairly.  I'm not sure anyone here disagrees with that (other than the human predators who call themselves "government" and "executives").

However, I suspect you grossly overvalue the intelligence, diligence and effort invested by [especially] union workers.  If their treatment was so egregeous, and they DID have a brain, they'd open their own business and become rich (<sarcasm>by grossly overpaying their union friends to be employees, presumably. </sarcasm>).

IN FACT, here is an serious (not sarcastic) idea for all union workers.  You know how the company you work operates.  Hell, you pretty much know EVERYTHING about the productive equipment, materials and processes (or should, since you operate them every day).

So why don't unions just QUIT EN-MASSE and start a competitive company?

Seriously!  Think how great this would work if you do it correctly.  First you keep quiet and have your alternate factory built.  Operate it for a short time to create a modest amount of inventory... THEN QUIT EN-MASSE.

Your former employer now has ZERO output.  And it will take some time to get his factory running again, since everyone quit at once, and they cannot all be quickly replaced with workers who know what to do.

Your company then rushes in to fill the gap in supply.  This lets you get your foot in the door with buyers, which is normally VERY DIFFICULT.  And you're off to the races.

-----

Epilog:  The reason most of us hate unions is... because they get artificial government support via laws and regulations.  I never worked with union workers, but everyone I know who has tells me they have a culture that absolutely revels in laziness and "getting away with whatever they can".  They actively work against the productive process that pays them, and laugh as long as they get away with this attitude and behavior.  There's nothing wrong with people voluntarily organizing and working together, and thus in theory unions are perfectly okay.  In practice, however, they are AWFUL.

Having said that, the currently common practices of corporate executives are even worse (do anything including destroy the company future to artifically boost short term faked financial numbers in order to receive insane salaries and bonuses).  But that's no justification to adopt non-productive attitudes, behaviors and actions.  Final alternatives.

PS:  On a personal note, I have no freaking idea why company owners (shareholders) allow such unbelievably insane executive behaviors, or why they overpay them by a factor of 100 or more.  I just don't understand well enough how this stuff works to figure this out.  Unless, of course, shareholders these days only intend to hold their shares for a quarter or two, in which case their interest are also short term, just like the executives.

cluelessminion's picture

Sorry but the writer lost me at "snydely".  At least proofread you articles.

Fahque Imuhnutjahb's picture

a few typos, misspellings, or grammatical errors don't necessarily negate the validity of the material, besides he was talking about Snydely Whiplash  http://markweinguitarlessons.com/forums/threads/anybody-seen-snidely-whi...

Dixie Flatline's picture
Dixie Flatline (not verified) Jul 22, 2015 4:30 PM
$900 Million Payday Is Billionaires' Reward For Crushing Twinkie-Maker's Labor Unions

Good.

DutchBoy2015's picture
DutchBoy2015 (not verified) Dixie Flatline Jul 22, 2015 4:34 PM

I don't mind getting paid peanuts to work hard , as long as my CEO is making 500 times as much as me.

Takes a big swig of Kool Aid.

You know we all have a chance of becoming a CEO also just like him,

Ain't this a great country???

I don't mind working overtime for straight pay even though 50 percent is taken out for taxes.

My CEO works hard playing golf everyday and fucking his secretary,

yes I have to beat my kids a lot because they are always whining they are hungry,

But shareholders are much more important and they work hard .

>>>>>>>>>>

This is the stockholm syndrome mentality here of the fucktard union bashers.  Total RETARDS who deserve to be debt slaves,

 

brucyy's picture

See that's the problem right there. You lack vision. the entire scope of your existance seem to be about the same , endless cliches  : the fortune 500 CEO fucking his secretary playing golf all day long , the lazy shareholder . and the poor worker getting screwed all over , and mostly incapable of thinking for himself , building his own business or simply leaving for a better job.  He simply can't do that . No fucking way.

That's holywood's version of socialism endless struggle 101.

You are working pretty hard to convaince yourself that you have some moral higher ground , i give you that .

In some ways you remind me of hillary clinton 

monad's picture

Enough union reps are playing golf with your CEO every day and balling his secretary that the union is not going to solve your problem. See the right golf shoe? See the left golf shoe? See your CEOs shiny pink dome?

Watch out for the crazy merc LEO reject in LP. He doesn't mind getting paid peanuts to work hard. He loves his job.

Charles Offdensen's picture

For anyone who thinks the unions weren't the problem I have just two word for you.

General Motors

Edit - now I have three more word for you.
Public Emoyee Unions!

Can I get a witness?

dexter_morgan's picture

That's why Walker is hated so much....except in Wisconsion. They have ZERO - I SAID ZERO unfunded liabilities in that state. Who the fuck wants that shit, eh?

ChickaBoom's picture

"And there, ladies and gentlemen, is your soaring wage growth: all of it going straight into the pockets of those lucky 20% of America's workers who are there to give orders, to wear business suits, and to sound important."

http://www.zerohedge.com/news/2015-03-11/mystery-americas-missing-wage-g...

GoldenDonuts's picture

Question for .01% and or any oligarch who mistakenly reads this blog.

Once you have squeezed the last person from the middle class and the .001% have 99.98% of the cash in the world.  When no person has a job and robots create products in your dark factories because robots don't need lights to run.  Who is your customer?  What is the point?

Oh and you might want to get onto creating the savemyassbot 1.0 to keep the savagely pissed of populace that you have saddled with poverty from ripping you limb from limb. 

rejected's picture

I have asked that question for years without receiving a decent answer...

dexter_morgan's picture
$900 Million Payday Is Billionaires' Reward For Crushing Twinkie-Maker's Labor Unions

 

Wow......have to double check the URL way too frequently when I come to this site lately. It seems more and more like HUFFPO has taken over here, from the articles, to the snydly remarks, to the comments.

As HA said below, I've often wondered why these unions don't just tell these companies to fuck off and go start competing companies if they are treated so badly. It's not like their union thug bosses don't have the cashola.

MrSteve's picture

Wot union goon wood ever come wid da idee to have MINION stickers to put on Twinkees? Dey wooda spelt it MINUNIONs or like so.

Meyer Blinder's picture

Next up an IPO for Hostess. Debt will be converted to equity for an overpriced, pumped IPO in which the former bondholders now shareholders will be selling. The QE4 fueled hoard will gobble up the IPO, shorts will jump on it, pound into dust. Bankruptcy, rinse, repeat. What a Country! - Yakoff Smirnov

EndOfDayExit's picture

 

 

 

 

Nothing wrong with these billionaire guys as long as others are willing to lend that company 1.2B knowing full well that 900M is being used to just pay dividends. Of course, those others are being forced by the FED into this. Don’t they have a free will to resist the force though? Oh, you say they can’t because of human nature? Then one might as well profit from it. The world is fucked up anyway.

 

 

 

 

 

 

Monetas's picture
Monetas (not verified) Jul 22, 2015 10:05 PM

When Marie Antoinette sarcastically said .... "Let them eat cake !" .... the good people at Hostess .... like all good Americans .... said, "Why not?" .... and proceeded to give the people a tasty, moist, buttery sponge cake with creme filling .... better than French royalty ate back then .... at a popular price .... this is Capitalism and Freedom making miracles .... in a dark, stupid socialist shit world .... I salute the good people at Hostess and their successors .... and good riddance to the unions .... who don't care if the people have cake !   Monedas at Zion-Hedge .... Comedy Jihad World Tour

sunkeye's picture

The problem is labor-management combativeness.

The solution is labor-management collaboration.  

 

The first group needs to appreciate an organization's right to earn a profit.

The second needs to appreciate the "working man's" (and woman's of course) right to a decent wage.

 

So ... EVERY private organization should set aside 49% of both its stock AND profit to its employees, which will provide incentive for its workforce to optimize efficiency.  No more "working for the man" when in fact you are "the man" i.e. part owner of the company who shares in its success.

 

And unions for governmental agency workforces should be prohibited by law but wages set comparable to private unions'.

 

This gets us decent paying jobs for workers who have an incentive to be productive (produce profits.)  

 

GDP is "circular" in that the sum of all goods & services sold is the same as the sum of all income received. The more money workers have to spend the more goods & services can be bought, right? 

 

It IS in management's best interest to set wages as high as possible.

It IS in labor's best interest to reduce inefficiency to its achievable minimum.

Both of these seemingly counter-intuitive positions are actually PERFECTLY sound logically.

 

My Z-hedge bros the real FREE world is neither Fight Club nor Chairman Mao.  It's a democracy that seeks to better itself thru wealth creating innovation AND class advancement opportunities via hard work.

Monetas's picture
Monetas (not verified) sunkeye Jul 22, 2015 10:27 PM

Labor unions .... cheat, lie, destroy, create animosity .... just like Democrats and Muslims and Communists .... I'd rather have my Twinky .... made by a robot .... than the swarmy filth .... with attitude .... they'll spit snot in the batter .... just like the Rev. Jackson spat snot in white people's soup .... in his brief career as a waiter !

JoJoJo's picture

Who crushed who? Before Hostess went down in 2011 it lost 340 million The Teamsters said they would take a haircut but the bakers union said no, ergo no cupcakes.

LibertarianMenace's picture

First the FED, followed by the steroidal state, followed by the Bethlehem Steel worker's union 13 week vacation, followed by Bethlehem's bankruptcy, followed the USG's bankruptcy, followed by, could it be, the END of the FED? The troubles all begin and end with central banking. No FED, probably no exorbitant union wage, no Twinkie failure, ergo no carpetbagger turn around scheisters. The problem is the money, with no accurate scorekeeping of economic activity, all hell breaks loose, and it has.

fr0thing's picture

"Did you tell him about the Twinkie?"

"What about the Twinkie?!"

-Ghostbusters!

fr0thing's picture

"Did you tell him about the Twinkie?"

"What about the Twinkie?!"

-Ghostbusters!