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

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  •  So sparhawk does that mean that AA executives (15+ / 0-)

    will share in the financial pain?  Of course not.  The free market is not free.  The deck is stacked in favor of the Kleptocracy.  For goodness sake, AA spent twice as much on Bain and other consulting firms in Dec. as they contributed to their pension fund.

    I'm truly sorry Man's dominion Has broken Nature's social union--Robert Burns

    by Eric Blair on Mon Feb 06, 2012 at 08:57:47 PM PST

    [ Parent ]

    •  Re (1+ / 0-)
      Recommended by:
      bbrown8370

      A judge will work all of this out. I am going to assume that the judge knows the internal matters of this case better than either of us.

      The pension fund and the government are going to have representation in the proceedings to ensure that executives aren't just looting the company.

      (-5.50,-6.67): Left Libertarian
      Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

      by Sparhawk on Mon Feb 06, 2012 at 09:02:07 PM PST

      [ Parent ]

      •  Tell it to all the lucky Enron employees... (5+ / 0-)

        ... who watched their profit sharing and 401k plans evaporate.

        •  Yup (1+ / 0-)
          Recommended by:
          bbrown8370

          When there is no money to cover obligations, there is no money. It certainly sucks, but it highlights the foolishness in all cases of having a retirement plan too dependent on an employer.

          (-5.50,-6.67): Left Libertarian
          Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

          by Sparhawk on Tue Feb 07, 2012 at 05:28:03 AM PST

          [ Parent ]

          •  But up thread you were siding with the poster (2+ / 0-)
            Recommended by:
            middleagedhousewife, JVolvo

            ... Extolling 401ks and "taking risk" as having the answers.

            •  The Enron employees in question... (2+ / 0-)
              Recommended by:
              bbrown8370, Argyrios

              ...had 401ks primarily in Enron stock, which is not unlike having a pension that requires your employer to remain solvent long enough to make payments to the plan.

              You are far better off (or at least, less at risk) with your retirement invested in things that have nothing to do with your present employer. It is far better to have your eggs in different baskets.

              Are you at risk of a stock market collapse even so? Sure, but everyone is all the time regardless of their investment strategy (and you can always put a 401k into "safe funds" that pay 2% but don't lose money in a crash).

              (-5.50,-6.67): Left Libertarian
              Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

              by Sparhawk on Tue Feb 07, 2012 at 09:00:25 AM PST

              [ Parent ]

              •  This is know as diversification... (0+ / 0-)

                Financially speaking, people should consider shorting the companies they work for. In the case the company crashes, the employees will be financially okay for a while.

                Of course, this should never happen, because of the bad incentives it sets up for employees, but that's another story.

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