Daily Archives: 23 November 2012

The Hostess Liquidation: A Curious Cast Of Characters As The Twinkie Tumbles

open quoteWhat is curious is that its emergence had all the drama of a anti-Mitt Romney PAC funded thriller, with a PE firm, in this case Ripplewood holdings, injecting $130 million in order to obtain equity control of Hostess as it was emerging last time. There were also more hedge funds, investment banks, strategic buyers, politicians involved in this particular story than one can shake a deep fried numismatic value Twinkie at. More importantly, however, as America has been habituated following the last season of the reality TV show known as the presidential election, if Private Equity then “bad.” Only this time there is a twist: because it wasn’t really PE that was the pure evil in the Obama long-term campaign, it was associating PE with Republicans, and thus: with jobs outsourcing. And here comes the Hostess twist: because Tim Collins of Ripplewood, was a prominent Democrat, a position which allowed him to get involved in the first bankruptcy process in the first place, due to his proximity with the Teamsters’ long-term heartthrob Dick Gephardt (whose consulting group just happens to also be an equity owner of Hostess). In other words, the traditional republican-cum-PE scapegoating strategy here will be a tough one to pull off since the narrative collapses when considering that it was a Democrat who rescued the firm, only to see it implode in a trainwreck that has resulted in the liquidation of a legendary brand, and 18,500 layoffs.

But it only gets better. Because the full cast of characters involved here is quite stunningclose quote (Read more)

Noam Chomsky: Impressions of Gaza

open quoteBy Noam Chomsky – 4 Nov 2012

Even a single night in jail is enough to give a taste of what it means to be under the total control of some external force. And it hardly takes more than a day in Gaza to begin to appreciate what it must be like to try to survive in the world’s largest open-air prison, where a million and a half people, in the most densely populated area of the world, are constantly subject to random and often savage terror and arbitrary punishment, with no purpose other than to humiliate and degrade, and with the further goal of ensuring that Palestinian hopes for a decent future will be crushed and that the overwhelming global support for a diplomatic settlement that will grant these rights will be nullified.

The intensity of this commitment on the part of the Israeli political leadership has been dramatically illustrated just in the past few days, as they warn that they will “go crazy” if Palestinian rights are given limited recognition at the UN. That is not a new departure. The threat to “go crazy” (“nishtagea”) is deeply rooted, back to the Labor governments of the 1950s, along with the related “Samson Complex”: we will bring down the Temple walls if crossed. It was an idle threat then; not today.

The purposeful humiliation is also not new, though it constantly takes new forms. Thirty years ago political leaders, including some of the most noted hawks, submitted to Prime Minister Begin a shocking and detailed account of how settlers regularly abuse Palestinians in the most depraved manner and with total impunity. The prominent military-political analyst Yoram Peri wrote with disgust that the army’s task is not to defend the state, but “to demolish the rights of innocent people just because they are Araboushim (“niggers,” “kikes”) living in territories that God promised to us.”

Gazans have been selected for particularly cruel punishment. It is almost miraculous that people can sustain such an existence. How they do so was described thirty years ago in an eloquent memoir by Raja Shehadeh (The Third Way), based on his work as a lawyer engaged in the hopeless task of trying to protect elementary rights within a legal system designed to ensure failure, and his personal experience as a Samid, “a steadfast one,” who watches his home turned into a prison by brutal occupiers and can do nothing but somehow “endure.”

Since Shehadeh wrote, the situation has become much worse. The Oslo agreements, celebrated with much pomp in 1993, determined that Gaza and the West Bank are a single territorial entity. By then the US and Israel had already initiated their program of separating them fully from one another, so as to block a diplomatic settlement and punish the Araboushim in both territories.

Punishment of Gazans became still more severe in January 2006, when they committed a major crime: they voted the “wrong way” in the first free election in the Arab world, electing Hamas.close quote (Read more)