Monday, March 13, 2006

Another law abused in America

We need to change the laws that allow corporations to restructure in bankruptcy and we need to change them now.

It is 100% wrong that businesses keep filing bankruptcy and resturcturing. Some businesses have done this SEVERAL times in the last 20 years.

They are allowed to do some really criminal things in the process. They often award their top executives HUGE INCREASES in salary while they are laying off workers at the same time and breaking unions. That is wrong.

United Airlines is a great example. They are in bankruptcy, AGAIN. They have been there for three years. They are going to end up paying lawyers and consultants over 335 million in fees. At the same time they have rennegged on several of ther pension plans and given them to the government. So now guess who will pick up the tab for these pensions? Yep, we will end up paying it. Thanks United!


Craig said...

It's a good thing we deregulated the airlines, or else they wouldn't be able to make any money...oh wait.

Actually two airlines do okay in the U.S. profit-wise, but they've learned from the mistakes of giants like United and American.

Jeff Pruitt said...

Why is it that the people who scream the loudest about the infalliability of the free market are the first ones that come to its aid?

Andrew Kaduk said...

Probably because they are the ones that realize that we live in a delicate balance between prosperity and oblivion. There are MANY roads to oblivion...not so many to prosperity.

Tim Zank said...

The Airline industry (with the exception of Southwest) suffers from the same malady as GM/Ford/Chrysler AND the U.S. Government....They became enormous and lost complete touch with the real world because of layer upon layer of middle managers with just enough authority to be dangerous and not enough accountability to be held responsible. Hence they just flounder in mediocrity.....

Michael said...

I may be wrong, bit I think United has only been in BK just the 1 time. Also, you state "It is 100% wrong that businesses keep filing bankruptcy and resturcturing. Some businesses have done this SEVERAL times in the last 20 years" Can you be more specific on what companies have filed SEVERAL times?

LP Mike Sylvester said...

"Michael said" brings up a great point! Thanks "Michael said."

Michael is right and I am wrong. This is Uniteds first Bankruptcy filing.

Other major airlines have filed at least twice; including US Airways. Many experts are predicting the Untied will be filing AGAIN within a year of coming out of bankruptcy...

Mike Sylvester

Doug H. Sec, Lib Pty AC said...

To All,

It is very important that people and/or business's have a legal remedy to debt problems that were neither intentional and/or predictable.

However, in the vast majority of large coorporations such is not the case.

Time and time again our government is bailing out large industries motivated by the fear of job loss.

If those idiots would just let lousy companies die then we wouldn't be compelled to deal with the mediocrity that has become the standard for corporate America.

Airlines are a prime example. After 9/11 not a single taxpayer cent should have gone to any airline! They should have all died where they stood. Soon afterwards small business men all over this country would have probably formed smaller airline companies that would have been streamlined and profitable.

Within several years (ie. where we are now) entirely new airlines would exist that would be profitable, not failing.

This goes beyond the airline industry however. They should not feel picked on. They are NOT a rotten apple in a barrel of apples, rather they are a rotten apple in a barrel full of rotten apples!

I am a firm believer in capitalism. Offer the best product at the least price. If the product is good in the long run you will survive. If the product is bad, in the long run you will die. You should die if you can't compete.

Perhaps someone should create a webpage that names all of the corporate executives that have been at the helm when the companies they were running took a giant crap. That way, we the "little people" could tell our stockbrokers and retirement fund managers that we refuse to put our money in any companies that these fools are now employed by. Maybe in time pressure would build on these idiots to try to keep their companies alive, or at the very least to blackball them so other companies wouldn't hire them.

Just a thought...


Doug Horner

CoffeeBigPlz said...

Seriously I have an uncle (who is now in jail on bad things to kiddies charges) who has declared bankrupcy FOUR times!

Obviously he is a loser and not a stand up guy, but he is living proof there are huge holes in the system!

By the way - yes, I am ashamed of the jerk CBP

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