a 'Harry and David' story

.....one of many New York investment firms (in this instance “Wasserstein, Goldman and Steinberg”) bought “Harry and David” for 85-million $$, via a “leveraged buyout,” an operation made familiar by Wall Street. Upon buying the firm, what did Wasserstein, Goldman and Steinberg do? They fired 30 percent of the workers involved in production (60 out of 180 employees), eliminated the pensions, drastically reduced the health-care benefits and doubled the salary of two or three managers of the firm. Nothing extraordinary so far, from a management point of view, though it is somewhat difficult to clearly link these measures to the firm’s growth and projected increase in profit. But the investors had in mind a cunning plan.....
    -- Jimmie Moglia

quantitative-easing

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