Journal roman_mir's Journal: Ho Hos are back, no word on the Ding Dongs 5
On November 21, 2012, Hostess Brands was shut down and went through a bankruptcy procedure to restructure its debts. On June 7, 2013, Hostess is open for business again under the new management.
This is an example of what free market based restructuring looks like after a company goes through normal bankruptcy due to no longer being able to operate and carry on with its fiscal responsibilities to the lenders, bond and share holders. Obviously the restructuring made the company profitable again, the plants and equipment were bought at auctions, the unions and various obligations to those unions written off as they should be.
The socialist/fascist/collectivist media is complaining full force that many people lost their jobs, of-course that was the point - restructuring debts, restructuring operations, streamlining operations, ensuring that the business can continue without impossible liabilities.
If it were up to the socialists/fascists/collectivists, the government would have stepped in (right into it) and bailed out the unions as it did in case of GM and some others. Of-course GM is going to fail again because it is still structurally unsound, even more so than before.
Had GM been allowed to go through the same bankruptcy procedures, the plants would have been bought up in auctions by more responsible owners at large discounts and made profitable again, plants and equipment don't go to waste, capitalism reclaims discarded pieces of business to rebuild them specifically because they have no liability baggage attached to them after restructuring.
Instead when the government steps in, it ensures that the business continues as usual, the only way governments know how - by stealing from actual owners and loading business with more liability and debt ensured by the tax payers.
It is a good thing that Hostess was allowed to go bankrupt, GM and all the banks should have also been allowed to go bankrupt, they would have re-emerged, clean slate, made profitable again in a sustainable manner.
This time capitalism won, the brand is back in business and people can enjoy their wonder breads and whatever other products named with plenty of sexual innuendo.
No, capitalism didn't win (Score:1)
Mercantilism and feudalism won. But nobody would expect an aristocrat like you to understand.. Your bigotry against those who actually work for their money knows no bounds.
Re: (Score:1)
He is a dog of the aristocrats.
Yes, you're right. He's just thinking he'll get a piece of the pie. Maybe he's just a troll. I would think better of him of that were true.
Re: (Score:2)
I love how Roman_mir likes to make the unions into the bogeymen of the GM, GM has been under terrible management for decades now, and was a company run by accountants rather than 'car men'. Not to mention that the japanese companies had far better benefits, and are still very profitable to this day.
When you dissolve a company, you effectively destroy its organizational capital, which takes precious time and energy to rebuild. Furthermore Say's Law is still in effect, and having unemployed persons is worse t