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View Diary: Bwahahahahahaha! American Airlines and Bain Capital. (282 comments)

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  •  No, how about they keep their promises (23+ / 0-)

    and if they can't get it right, hire someone who is not a liar, cheat or thief to calculate their long term exposure.

    They can start with not paying extortion level salaries to executives who run corporations into the ground.

    You should take your RWNJ tickets somewhere else 'cause no one is buying them here.

    •  It's not a lie, and it's not a cheat or thief (0+ / 0-)

      The point was that American Airlines had a fairly healthy pension plan. For a somewhat made up example, they they had $10B in a retirement fund, and looking into the future, it looked much like the last several decades of American life: investments made 5-6% in real return.

      Then the crash came along (which nobody really predicted), and that $10B in investments became $5B in investments in less than a year. Worse yet, AA is now trying to make up the difference in a recession - which simply isn't going to happen. They lost half a billion dollars in 2010. They lost more than a billion dollars in 2009 and 2008. Where does the money come from to make up the unforseen drop in pension value?

      Well, here's the answer: nowhere. And it kills the company and a lot of jobs. That's why pension plans suck. They pretend there's no risk in what is essentially a risky asset.

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