Capitalism Fails Again – CEOs Bankrupt Companies And Get MILLIONS In Bonuses

Capitalism Fails Again – CEOs Bankrupt Companies And Get MILLIONS In Bonuses


Recently a bankruptcy judge heard from executives
at a Sears and Kmart, same company at this point, um, were the executives and their lawyers
argued that even though these stores are bankrupt, we’re going into bankruptcy, we’re shutting
them down. We should still be allowed to pay our bonuses
of $25,000,000 to executives and shareholders with these companies. By God. These people deserve that $25,000,000 even
though yet they destroyed these companies that have been around for decades. I mean health. Sears is older than most people in this country
and these guys were so bad at it that they couldn’t keep a company running that had been
in existence for decades, probably decades before they were even born. They bankrupted it, destroyed it. Stores are closing left and right, and now
they want $25, million dollars for doing that. Same story with Kmart. Sears owns Kmart, and so that was part of
the bankruptcy liquidation and chapter 11 and all of that. These stores are going to go out of business. Thousands of people in this country are going
to lose their jobs and instead of saying we’re going to take money out of that pot, you know,
out of your bankruptcy pot and give it to those employees to make sure they get a good
severance or that they can get good benefits for a few months while they find a new job. No, the bankruptcy judge said, you know what
executives? I agree with you. I think these wealthy people who destroyed
these companies because they’re so bad at business, deserve another $25,000,000 and
this ladies and gentlemen is the biggest failure of capitalism because this isn’t just a story
that happened with Sears. This happens with companies all over the country. Every single year people come in, hedge fund
managers, typically they buy up a company, buy up the real estate, charge them out the
Wazoo. These companies end up going bankrupt. They have to shut down all their stores across
the country, but the hedge fund managers get huge bonuses for destroying these companies. Same thing that happened with Toys R Us David
Dayen has done a phenomenal investigative piece on this. Actually, a year or two ago where he explained
how this little scam works and that to me is one of the biggest failures of capitalism
here in the United States, that we reward failure, that we give ceos who can’t run a
business tens of millions of dollars for no other reason than they’re called a CEO. They have no talent, they have no vision,
they have no direction, and yet they get tens of millions of dollars while we have teachers
in this country giving a brighter future to students all over the place, inspiring them,
teaching them, educating them, and they’re having to take second jobs because they can’t
pay their bills. The real heroes in this country are not sitting
in board rooms. They’re not a corporate shareholders and their
name isn’t followed by the title chief executive officer. They’re standing in classrooms. They’re standing in courtrooms arguing for
consumers. They’re first responders and there are people
who are out there every day trying to do the best they can to provide a better life for
their family and their friends, but they’re damn sure not sitting in board rooms yet. Those are the people who get the biggest rewards
because capitalism in the United States as it is right now, is a complete joke.

100 Comments on "Capitalism Fails Again – CEOs Bankrupt Companies And Get MILLIONS In Bonuses"


  1. Corporations and billionaires have stolen trillions since the 1970’s from the working Americans, how much is enough? When are the people going to say ‘enough’?

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  2. It fucking baffles me that this blatant and public act of greed is astonishing.

    Here we have wealthy people stealing money from a supposedly failing company while the hourly employees are without a job.

    Now, if one of those jobless human beings go out and say steal a loaf of $3 bread so they could feed their kids, they would be arrested for shoplifting and thrown in jail. Yes, it is most likely a misdemeanor and they will be let out of jail same or next day.

    How the fuck is it even remotely right that executives can "steal" $25 Million from a failing company and not be held accountable? Fuck capitalism!

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  3. With the market tanking, how long will it be before the, real rich, turn against Trump for costing them all that money.

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  4. This is why Thomas Jefferson said the Constitution needs to be written again every 30 years … To prevent shit like this

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  5. CEOS and share holders gets bonuses why the company's is going out if bussinnes. Just like those 6 general motor car plants. The CEOS and share holders got millions of dollars in bonuses. All those workers lost their jobs. They don't care about y'all or your family. You cannot keep supporting people like that. Vote them out. The rich is for the rich.

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  6. Hello, my name is De'Narde English, founder and leader of the United States National Unity Party.

    The National Unity Party (New Progressive Party) have heard of every concerned citizen in the United States and I ask everyone to get ready, for we are preparing war with the rich. The cruel, the greedy, the heartless that allied themselves with conservatives that want to bring the United States backward in time. The rich had invaded our government, robbed America due to Republicans failed trickle down economics, and turned many honest politicians, Democrats and Republicans, into their own personal corporate puppets and helping them benefit only to the rich, and destabilize our democracy. This entire oligarchy government, this entire country is run by the rich!
    We must crush these vermins, and we will remove the corrupted from our government!
    I am asking each and every one of you to put aside your party ideologies that had divided us for so long. We will unite, we will stand together, and we will wipe out this plague. America, this democracy, will prevail! Are you in?

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  7. Lol. Sears started in the 1890s. I should hope it is older than all the people in this country. 128 years old.

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  8. Unfortunately, the U.S. brand of 'Capitalism' is a self-inflicted disease. Born out of the wilfull ignorance of the average citizen. At some point people have to realize this.

    Or not.

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  9. I could never understand why executives who failed the businesses they had oversight with, should receive a golden parachute and bonuses. What insanity this is today. You're being rewarded for being a failure. It use to be at one time in this country, that the opposite was true. You were rewarded for business enhancement and good performance and not the opposite !

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  10. the rich gets richer and the poor struggles more mentality is at a all time high and if you don't believe me go asked some of these farmers and workers at GM(General Motors) but all they will call it is fake news

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  11. i don't want CEO's to eat shit and die,i want them to eat shit and live so the can keep the taste in their mouths for awhile and remember it always…

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  12. Capitalism never fails.Instead,it works perfectly.That is,for the really big fish good old boys network.They create a 'crisis 'and they are getting rich from it.They own practically every government and political party in the Western hemisphere,and the ones paying for their schemes is the common man paying taxes:banks tumble and the state comes to the rescue.It's not all that complicated.If you start with learning,for instance, who owns the Fed,the Bank of England,and the Bank of International Settlements,and who are the richest families in this world.

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  13. Usefully don't you get bonuses for doing something? If the company is going under what could they possibly have done to merit earning a bonus of any kind?

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  14. Sorry but this is not entirely accurate. I support the progressive cause but you can't just demonize every company without knowing facts.

    A far as the executive compensation, yes that's ridiculous and should not happen.

    But Sears and Kmart didn't fail due to executive corruption in the way Farron is representing it here. I worked in the manufacturing industry and dealt with Kmart and Sears for years. They fell to the wayside in an incredibly and increasingly competitive market – they simply couldn't fight Walmart, Target and the countless other discount chains that were encroaching on their space. This is the nature of business, period. To suggest that it failed simply due to executive corruption is a ridiculous characterization based on no facts. It may make some feel better to suggest it's all about shareholders scheming against people but in this case, that's just not accurate. They just didn't know how to stay relevant and competitive with other companies that did discount business better than they did.

    I understand that what's going onion our nation is terrible but creating a narrative that has no bearing in reality simply to stir up more anger in people is not helpful to us or anybody else. There is real corporate corruption out there and I'm not saying that Kmart and Sears didn't have any corruption at all in their midst. But their demise was the result of years of struggling with an increasingly competitive market and not because of some CEO fleecing them or any other corporate scheme.

    Does that mean that demanding huge severance packages for CEO's are a good thing? Of course not. But we can't start making up narratives like the right wing simply to gin up support for progressive politics. That is what we are supposed to be fighting against. I'm sure Farron means well but he simply does not know what the hell he's talking about here and it makes me seriously wonder whether many of his perspectives on this channel are misinterpreted and/or skewed. Hope not.

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  15. Capitalism is nothing less than a cancer plaguing this country, this entire world. The massive corporations are nothing more than engines of endless greed that choke the life out of towns, cities, entire countries. And either those engines grow to such monstrous sizes that they're almost beyond the law to constrain them or are in turned killed to feed the greed of CEOs and their ilk. I think we can very safely say that capitalism as a whole has failed us. It's time to leave to die.

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  16. A disgusting, greedy system that has been around for most of Gen X and we the Millennials are all too familiar with. And now were fed up with it.

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  17. #45 and the Republicans have to find ways to pay for the 1% tax cuts. Privilege a few at the expense of many; that’s the American way. Right?! 😚🧐😑

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  18. There’s an order of who gets paid when a company goes bankrupt. Suppliers and creditors get paid first. After, shareholders split up what’s left. Nowhere by law are CEOs or employees entitled to anything. I’m guessing the CEO of Sears had a lot of stock options and that’s why he got paid. FYI…not all stocks are treated equal in a bankruptcy filing.

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  19. Give me a break. They should give the money to the workers, not the CEOs.
    If they didn't have the "workers," they wouldn't have a business.

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  20. People are in danger because leadership in the US is dysfunctional. Whips and Leaders are the true crux of the corruption. A true disruptor in Congress. They were created during the height of Government corruption in 1899 (leaders) and 1900 (whips). They were NOT implemented by the framers of the Constitution or the Declaration of Independence. Congress is manipulated by Whips and Leaders to broker the bills in a profiteering manner to 501c's, corporations and other countries. The myth is Congress is a weak victim overpowered by the large money lobbyist. But the truth, Congress is the tyranny understanding they have a monopoly selling bills and are aggressive at it. You want a bill passed you have to come through them, so bring your American Express card. There is no defensible argument, Congress betrayed their Fiduciary duty. Whips and Leaders should have been eliminated with Antitrust in the early 1900's. Whips and Leaders front run our republic. This isn't a Democracy, it's not a Republic, it's a coup d'état and the Whips and Leaders are the party of guilt…. The most corrupt era of the US Government was in the late 1800's and early 1900's. It was when Americans were in revolt of our Government in collusion with giant monopolies (Antitrust). Names like JP Morgan , Rockefellers, Vanderbilt's, etc.. These guys bought and paid for the election of President McKinley. Then President McKinley implemented Whips and Leaders into our government to assist the large amounts of lobbyist money, campaign contributions and special interest group monies in a profiteering manner. It was a terrible, terrible time for America. Six months later in Presidents McKinley's second term of Presidency he was assassinated. Antitrust was finally passed around 1914 but they forgot to get rid of the corrupt Whips and Leader position that assist in this corruption. Benjamin Franklin said, “A Republic, if you can keep it.”

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  21. Capitalism. n. the possession of capital, especially its concentration in the hands of a few; the power of combined capital. So, how does this become the choice in any country, especially the U.S ? From the get go, this is inviting in-equality, its a dog eat dog ..winner take all ,set up. It's Republican vs. Democrat, keep dividing and conquering till you are the King, it is Monopoly friendly. Toss in the cheaters, liers, and thieves to make your laws and rules..and pay them w/an economic idea, hmm? Oh, Trickle Down Economics…how many times will the people let us do this? Can anybody count.? When people vote in good faith, and realize that something is afoot…your laws and rules set up to cover your Ass…Illegitimate!! Anyone tired of this game yet? Because, it would seem that 'How many Times?' could be up..should be up! A minority ruling over a majority…How they pulled this off is going to be Criminal..and probably induce projectile vomiting at the horrors we are liable to see/uncover.

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  22. Make no mistake. These bankruptcies are not due to incompetence. On the contrary, they were counting on this day coming. They have every intent of bankrupting the company in order to get paid out during the bankruptcy proceedings (exactly the same as when Trump brags about getting paid from his failing businesses).

    The same thing is happening with Toy R Us, I believe.

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  23. Capitalism didn’t fail, its doing what capitalism always does. Devour the host. Without firm regulatory controls “free market” capitalism will always devour the host cuz that’s what it does. Thanks Reagan.

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  24. Yeah, we have the exact same shit, happening here in Australia… Our current Prime Minister "for this week anyway"… Scott Morrison, swore when he was federal treasurer, that we did not require a royal commission/investigation into banks and financial services… Well we have one going on now, despite these corrupt political pimps and stooges claiming otherwise… Guess what, the revelations are not pretty!… for example, the same bonuses you mentioned, for incompetent, corrupt executives… And the one I especially "enjoyed": fees being charged to deceased customers, sometimes years after they've croaked!… Money talks huh… What the fuck has happened to integity?… We sure as hell need some serious new laws/conseqences to keep this corrupt filth, on the straight and narrow!… Love your work, Farron , Cheers from Oz…

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  25. No chance of any rules against corporate corruption as long as they have huge sums of money to influence politicians. As they say, it takes huge sums of money to make even more huge sums ofmoney.

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  26. Capitalism Fail is a great term to express this. This fail began with the ENRON nightmare and energy prices tripled and quadrupled. Banks followed suit and people lost their homes… we need to accept the fact that we do need regulations, the free market will not police itself, there is no "invisible hand" guiding the free market and we must wake up and smell the coffee and just not fall for doublespeak anymore. We must begin to stand up to corrupt leaders who only want to ingratiate themselves with big business to get votes. We have to be able to detect lying. So… the anti-corruption act seems to be a good place to start.

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  27. So Conservatives are always mad at how kids get participation trophies because it's not like the real world, but already rich people fail and fail again get millions to get fired or bankrupt companies while most of the US struggle to save a few extra hundred is what makes America great? Conservative commentators can't get fired without a million dollar paycheck but liberals think they are entitled to what they don't deserve for wanting healthcare and education for all citizens?

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  28. It's not capitalism, it's mismanagement, and it's a worldwide problem. Incompetence should not be protected by law, regardless of contracts.

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  29. So they are taking big fat bonus and go run others companies down to sewers again! Great! 😆😊 👍🏼👍🏼👍🏼

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  30. Trump has done it 6 times. The ripple effect in Atlantic City affected almost 70% of it citizens in life destroying ways. Yet he continues to boast about how rich he is

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  31. Time to knuckle up for our own Yellow vest revolt. Neoliberalism is now collapsing in France, although the main stream media is not covering it……

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  32. 😬🤣🎹🤛😉🎙The most dangerous weapons of massive destructions by massive desceptions onto todays peoples, are yesterdays reaped and modern days, Sown share croplands of the United Corporates of greediness by which we Stands.✔✍☻👍
    🤑🎻🤮🤮🤮🤷‍♀️🤮🤷‍♂️🤮🤮🤮🙌🤑yep🇺🇸

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  33. So law and order is upheld by judges like Kavanaugh and CEOs essentially run scams based on bankrupting companies? How the hell did it end up like this?

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  34. Karl Marx predicted that Capitalism would destroy itself through its own contradictions. Forgive the pun but Marx was on the money, as this is not the earmarks of a sustainable economy.

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  35. This cannot go on what can we do this is something that is making me sick to my stomach. And that judge needs to be dealt with also how.

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  36. That's why THARP was successful! The CEOs was allowed to get their bonuses,perks etc while the workers & the rest of us "got the shaft" as Jerry Reed had sung about. And the bill !!!

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  37. Teachers get more pay? How do we afford the military then? We are on a bare bones budget of $800,000,000,000,00 A year ! How can we afford to pay teachers more Money? We just gave billionaires a $3,000,000,000,000.00 tax break that the senior citizens are going to pay for thru. Social Security! We'll have to raid their Medicare we have no choice!

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  38. Greed knows no bounds in the world of American capitalism. Unfairness is a word that is not in their vocabulary while empathy for others less fortunate does not exist. Shameful.

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  39. The ONLY hope for the 99%… is to find a way to reject ALL economic systems that allow the 1% to own and control us all. www.ubuntuplanet.org

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  40. Come on, Cuz. Outrageous CEO pay and golden parachutes have been a topic of outrage for decades, man.

    A good twist on this would be for you to propose some ways to put a stop to this.

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  41. Sears, founded in 1893. S. S. Kresge (renamed Kmart in 1977), founded in 1899.
    The greed, arrogance, and callousness of it all is incomprehensible!!!
    We, the average American people need to stand up and say, "Enough is enough!!" The days of private equity firms, leveraged buyouts, and stock buybacks must end!!!
    So many good companies over the last almost 40 years have been destroyed by this greedy reckless behavior!!!
    If this is not stopped…….. We will all "owe our soles to the company store!!"

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  42. *Corporatism

    This is what happens when you allow nepotism and near-monopolies to control the market.

    But I don't have any disagreement with your criticisms. I wouldn't even nitpick if people weren't saying that we need to abandon capitalism for communism. It has a lot of problems we need to control for, but communism is way worse.

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  43. I believe everything the man said but please do not ever forget that the people that come in in the night to clean their toilets and their desks for the judges and the lawyers the teachers the garbage cans the toilets that Everybody poops and pees in the floor is that all the students in the teachers in the principles in the superintendent's walk on that they are all clean those people we need to be able to buy a new car and a home as well the jobs are not coming back the orange headed buffoon is a lying Pig just like the white-haired pig all their families and the Millionaires and billionaires that taking up our White House that want to give all of our tax dollars and half of our paychecks back to them because there's supposed to be a job creator these people all make me sick to my stomach I've worked hard physical jobs all my life to make a living I'm not educated as well as the next person but I'll do just about anything but I will not bow and collar to these ass wipes unions unions unions worked all my life just so I could be poor and in debt up to my neck so I can't even breathe anymore because that's the way they like us things happen and you have to get a loan and then something else happens and you have to get a loan you try and save and save and you did they take it from you fuck these motherfuckers

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  44. If they came to my property I would beat them half to death with a baseball bat and I'm not one of those deplorables that voted for this asshole I'm a die-hard Democrat for the working men and women in this country and unions balance we need a balance tired of praising the military I'm tired of praising the corporations and watching them giving each other bonuses every year while the little tiny people that clean their fucking toilets make sure their toilet papers on the roll a certain way and looks pretty for them fuck them motherfukers

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  45. There used to be a time when capitalism was when people made a living wage to live a roof above their heads, feed their wife and kids, pay for bills, and afford tuition.

    Now capitalism is now the new evil because our government panders to the corporate lobbyists/shareholders that provide no benefit to society. America is NOT a democracy, but a corporate plutocracy.

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  46. Farron, how many people are 125 years old that you know of? Older than MOST people in this country? Huh??? Sears was founded in 1893.

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  47. The problem is publicly traded companies. Big public companies have problems like this. Private companies have problems with nepotism. Pick your poison.

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