texasjq2

Hostess wants to pay out 1.8 million in bonus money to the people who drove the company into bankruptcy in the first place. Now I don’t know about y’all but it seems to me that since these people were the dummy’s who drove the company into the ditch they really should be paying the Company for the privilege of not going to prison. Oh, that’s right you can’t send them to jail for being stupid.

I am amazed, first that the company would have the temerity to ask the court to approve this, and second that the court might actually approve it. When a company enters bankruptcy, the shareholders lose everything. Why should the people who brought the company to this place be rewarded for their inability to manage the company properly? Now, I have to say, I do not now, nor have I ever owned shares in Hostess, I did in GM before the Gov’t screwed the shareholders and bondholders, as well as a number of dealers and employees of companies that were dependent on GM. Yet here we are, a company goes into bankruptcy and expects to keep the executives it has to help it manage the proceedings, and asks to give them bonus payments. WHY?

I note that K-Mart went into bankruptcy a number of years ago, came out of it in decent shape then bought Sears with the money they managed to make out of the bankruptcy proceedings. BTW, their management is not doing very well now either, but perhaps they too will reap bonuses from the company as it moves into the cellar.

I do not own any of these shares either, never thought it was a good investment and stayed away from it. I have made enough investment mistakes, but not these anyway. Well, I am writing this as my second entry in my blog today, simply because this is a busy Friday and well I happen to be a bit angry at what I see our nation becoming. More on that will follow.

Don’t be afraid to comment I do appreciate your notice of my feeble attempts to comment on the happenings in our daily lives.

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