normiss 917 #1 October 5, 2009 Is this how we run big business in this country now? Simmons Sound like the way the government wants to run the country for that matter. It's just gotten completely out of control. Quote Share this post Link to post Share on other sites
warpedskydiver 0 #2 October 5, 2009 Reminds me of a land deal in Arkansas. Quote Share this post Link to post Share on other sites
kallend 2,227 #3 October 5, 2009 Quote Is this how we run big business in this country now? Simmons Sound like the way the government wants to run the country for that matter. The Simmons story is pure unadulterated capitalism. The govt stands accused of socialist tendencies. Your conclusion is totally illogical.... The only sure way to survive a canopy collision is not to have one. Quote Share this post Link to post Share on other sites
jcd11235 0 #4 October 5, 2009 QuoteThe Simmons story is pure unadulterated capitalism. The govt stands accused of socialist tendencies. Your conclusion is totally illogical. Every good Libertarian knows that it never would have happened if the government had not required Simmons to put those law labels on their mattresses. Clearly the problem is that the mattress industry suffers from too much government regulation.Math tutoring available. Only $6! per hour! First lesson: Factorials! Quote Share this post Link to post Share on other sites
marks2065 0 #5 October 5, 2009 Quote Quote Is this how we run big business in this country now? Simmons Sound like the way the government wants to run the country for that matter. The Simmons story is pure unadulterated capitalism. The govt stands accused of socialist tendencies. Your conclusion is totally illogical. Quote the problem is that those responsible are not being held accountable. If the company goes bankrupt the people running it should go bankrupt also. that is capitalism. Quote Share this post Link to post Share on other sites
billvon 3,173 #6 October 5, 2009 >If the company goes bankrupt the people running it should go bankrupt also. >that is capitalism. ?? No, that's socialism, where the government intrudes into business to enforce your own personal sense of fairness. In capitalism, if you can bankrupt a company while making tens of millions, you are by definition a successful capitalist. Ask Liu Pai. Quote Share this post Link to post Share on other sites
justinb138 0 #7 October 5, 2009 Quote The Simmons story is pure unadulterated capitalism. The govt stands accused of socialist tendencies. Your conclusion is totally illogical. In many ways, what private equity firms did at Simmons, and scores of other companies like it, mimicked the subprime mortgage boom. Fueled by easy money, not only from banks but also endowments and pension funds, buyout kings like THL upended the old order on Wall Street. These private investors were able to buy companies like Simmons with borrowed money and put down relatively little of their own cash. Then, not long after, they often borrowed even more money, using the company’s assets as collateral — just like home buyers who took out home equity loans on top of their first mortgages. For the financiers, the rewards were enormous. Twice after buying Simmons, THL borrowed more. It used $375 million of that money to pay itself a dividend, thus recouping all of the cash it put down, and then some. “Plus, the mind-set was, since the money was practically free, why not leverage the company to the maximum?” Yep, I'm sure the Fed's monetary policy had nothing to do with the situation at all. Quote Share this post Link to post Share on other sites
kallend 2,227 #8 October 5, 2009 QuoteQuote The Simmons story is pure unadulterated capitalism. The govt stands accused of socialist tendencies. Your conclusion is totally illogical. In many ways, what private equity firms did at Simmons, and scores of other companies like it, mimicked the subprime mortgage boom. Fueled by easy money, not only from banks but also endowments and pension funds, buyout kings like THL upended the old order on Wall Street. These private investors were able to buy companies like Simmons with borrowed money and put down relatively little of their own cash. Then, not long after, they often borrowed even more money, using the company’s assets as collateral — just like home buyers who took out home equity loans on top of their first mortgages. For the financiers, the rewards were enormous. Twice after buying Simmons, THL borrowed more. It used $375 million of that money to pay itself a dividend, thus recouping all of the cash it put down, and then some. “Plus, the mind-set was, since the money was practically free, why not leverage the company to the maximum?” . Good capitalism at work.... The only sure way to survive a canopy collision is not to have one. Quote Share this post Link to post Share on other sites
justinb138 0 #9 October 6, 2009 Quote Good capitalism at work. Ah, k. Hear what you want to hear. I get it. Quote Share this post Link to post Share on other sites
billvon 3,173 #10 October 6, 2009 >since the money was practically free, why not leverage the company to >the maximum? And that, my friend, is the very definition of capitalism at work. Why be cautious when you, personally, can make millions? Quote Share this post Link to post Share on other sites
kallend 2,227 #11 October 6, 2009 QuoteQuote Good capitalism at work. Ah, k. Hear what you want to hear. I get it. Clearly you don't get it at all.... The only sure way to survive a canopy collision is not to have one. Quote Share this post Link to post Share on other sites
