#Investing Investment

[unchartedthelostlegacy]

i love graffiti. "comics and jazz are the only american art forms" you forgot graffiti. did you remember graffiti? That art form birthed in Philly and NYC in the early 70s by poor Black kids. that art form that spread all over the world and influenced so many. that's used without irony in commercials when they're trying to appeal to a "young urban" customer.

did you forget graffiti? that racism broken windows theory victim? that reach the establishment takes claiming that it's exclusively violent gang members throwing up those full-color pieces and wildstyle tags in the middle of the night outsmarting fifty security cameras because the billboard was ugly anyway. as if, even if it was, it wouldn't be impressive as all hell. risking brutality and fall damage so your art can occupy the space a gentrified condo named something like "Coluumna" took away from you. proving that despite only assholes affording to live here anymore there's still a soul beneath it. an animal with dripping stripes and teeth that go clack-clack tsssss

[cognitiveinequality]

So... a bunch of NFT grifters threw a party in Hong Kong this weekend and reportedly a bunch of attendees are now at risk of permanent eyesight damage because the promoters used unsafe lighting, and people are going to the ER...

[catmask]

the 'all marriage is gay as far as im concerned' except its me watching a man and woman character in a show i like and accidentally saying 'theyre so gay' because i literally forget thats not the word for romance because to me all romance is gay

[gibbearish]

love when ppl defend the aggressive monetization of the internet with "what, do you just expect it to be free and them not make a profit???" like. yeah that would be really nice actually i would love that:)! thanks for asking

[kylejsugarman]

only thing i know for certain is that if "breaking bad" took place during modern times, jesse would've used his cash to buy a drone and there would've been a sick ass sequence filmed from drone perspective and one episode cold open would've been all scary and sinister and it would end with an ominous shot of the drone laying all crushed and fucked up on the floor to imply harm done to jesse. and it would be really sad

[foundfamilywhump]

being aromantic and into whump is like. shoutout to whump for being a great opportunity to engage with stories about intimacy and vulnerability and powerful emotion and physical interactions with other people and intense relationships that are not presumptively based in romance. what would i do without you.

[buzzblog1]

Investing Investment Loan Rates as a Guide for Savvy Investors

Investing in real estate or other major assets often requires significant capital, more than what many individuals or businesses have on hand. This is where investment loans come in, offering the necessary funds to make such investments possible. However, the world of investment loans can be complex, with varying rates and terms that can significantly impact your financial health. In this blog, we’ll explore what investment loan rates are, factors influencing these rates, and tips for securing the best possible rate.

What are Investment Loan Rates?

Investment loan rates refer to the interest charged on a loan taken out to invest in assets like real estate, stocks, or a business. Unlike personal loans, these are specifically geared towards investments that are expected to generate returns. The rate is usually a percentage of the loan amount and can be fixed or variable.

Fixed vs. Variable Rates

Fixed Rates: These rates remain constant throughout the loan term, making them predictable for budgeting. They are often higher than the initial rate of variable loans but provide stability against market fluctuations.

Variable Rates: These rates fluctuate based on market conditions, often tied to an index like the prime rate. They can offer lower initial rates but carry the risk of increasing over time.

Factors Influencing Investment Loan Rates

Several key factors determine the rates you’ll get on an investment loan:

Credit Score: A higher credit score can lead to lower rates as it indicates lower risk to lenders.

Loan-to-Value (LTV) Ratio: This is the ratio of the loan amount to the value of the investment. A lower LTV usually results in lower rates.

Type of Investment: The nature of the investment (e.g., commercial real estate vs. stocks) can affect the risk assessment and hence the rate.

Economic Conditions: Broader economic factors like inflation, federal policies, and market trends can influence interest rates.

Lender Policies: Different lenders have varying policies and risk appetites, which can affect the rates they offer.

How to Secure the Best Investment Loan Rates

Improve Your Credit Score: Paying bills on time and reducing debt can improve your credit score, leading to better loan terms.

Shop Around: Don’t settle for the first offer. Compare rates from multiple lenders to find the best deal.

Negotiate: Be ready to negotiate with lenders, especially if you have a good credit score or a strong investment proposal.

Consider Loan Terms: Sometimes a slightly higher rate for a shorter term can be more economical than a lower rate for a longer term.

Stay Informed: Keep up with market trends and economic forecasts to anticipate rate changes.

[mostlysignssomeportents]

Red Lobster was killed by private equity, not Endless Shrimp

For the rest of May, my bestselling solarpunk utopian novel THE LOST CAUSE (2023) is available as a $2.99, DRM-free ebook!

A decade ago, a hedge fund had an improbable viral comedy hit: a 294-page slide deck explaining why Olive Garden was going out of business, blaming the failure on too many breadsticks and insufficiently salted pasta-water:

https://www.sec.gov/Archives/edgar/data/940944/000092189514002031/ex991dfan14a06297125_091114.pdf

Everyone loved this story. As David Dayen wrote for Salon, it let readers "mock that silly chain restaurant they remember from their childhoods in the suburbs" and laugh at "the silly hedge fund that took the time to write the world’s worst review":

https://www.salon.com/2014/09/17/the_real_olive_garden_scandal_why_greedy_hedge_funders_suddenly_care_so_much_about_breadsticks/

But – as Dayen wrote at the time, the hedge fund that produced that slide deck, Starboard Value, was not motivated by dissatisfaction with bread-sticks. They were "activist investors" (finspeak for "rapacious assholes") with a giant stake in Darden Restaurants, Olive Garden's parent company. They wanted Darden to liquidate all of Olive Garden's real-estate holdings and declare a one-off dividend that would net investors a billion dollars, while literally yanking the floor out from beneath Olive Garden, converting it from owner to tenant, subject to rent-shocks and other nasty surprises.

They wanted to asset-strip the company, in other words ("asset strip" is what they call it in hedge-fund land; the mafia calls it a "bust-out," famous to anyone who watched the twenty-third episode of The Sopranos):

https://en.wikipedia.org/wiki/Bust_Out

Starboard didn't have enough money to force the sale, but they had recently engineered the CEO's ouster. The giant slide-deck making fun of Olive Garden's food was just a PR campaign to help it sell the bust-out by creating a narrative that they were being activists* to save this badly managed disaster of a restaurant chain.

*assholes

Starboard was bent on eviscerating Darden like a couple of entrail-maddened dogs in an elk carcass:

https://web.archive.org/web/20051220005944/http://alumni.media.mit.edu/~solan/dogsinelk/

They had forced Darden to sell off another of its holdings, Red Lobster, to a hedge-fund called Golden Gate Capital. Golden Gate flogged all of Red Lobster's real estate holdings for $2.1 billion the same day, then pissed it all away on dividends to its shareholders, including Starboard. The new landlords, a Real Estate Investment Trust, proceeded to charge so much for rent on those buildings Red Lobster just flogged that the company's net earnings immediately dropped by half.

Dayen ends his piece with these prophetic words:

Olive Garden and Red Lobster may not be destinations for hipster Internet journalists, and they have seen revenue declines amid stagnant middle-class wages and increased competition. But they are still profitable businesses. Thousands of Americans work there. Why should they be bled dry by predatory investors in the name of “shareholder value”? What of the value of worker productivity instead of the financial engineers?

Flash forward a decade. Today, Dayen is editor-in-chief of The American Prospect, one of the best sources of news about private equity looting in the world. Writing for the Prospect, Luke Goldstein picks up Dayen's story, ten years on:

https://prospect.org/economy/2024-05-22-raiding-red-lobster/

It's not pretty. Ten years of being bled out on rents and flipped from one hedge fund to another has killed Red Lobster. It just shuttered 50 restaurants and declared Chapter 11 bankruptcy. Ten years hasn't changed much; the same kind of snark that was deployed at the news of Olive Garden's imminent demise is now being hurled at Red Lobster.

Instead of dunking on free bread-sticks, Red Lobster's grave-dancers are jeering at "Endless Shrimp," a promotional deal that works exactly how it sounds like it would work. Endless Shrimp cost the chain $11m.

Which raises a question: why did Red Lobster make this money-losing offer? Are they just good-hearted slobs? Can't they do math?

Or, you know, was it another hedge-fund, bust-out scam?

Here's a hint. The supplier who provided Red Lobster with all that shrimp is Thai Union. Thai Union also owns Red Lobster. They bought the chain from Golden Gate Capital, last seen in 2014, holding a flash-sale on all of Red Lobster's buildings, pocketing billions, and cutting Red Lobster's earnings in half.

Red Lobster rose to success – 700 restaurants nationwide at its peak – by combining no-frills dining with powerful buying power, which it used to force discounts from seafood suppliers. In response, the seafood industry consolidated through a wave of mergers, turning into a cozy cartel that could resist the buyer power of Red Lobster and other major customers.

This was facilitated by conservation efforts that limited the total volume of biomass that fishers were allowed to extract, and allocated quotas to existing companies and individual fishermen. The costs of complying with this "catch management" system were high, punishingly so for small independents, bearably so for large conglomerates.

Competition from overseas fisheries drove consolidation further, as countries in the global south were blocked from implementing their own conservation efforts. US fisheries merged further, seeking economies of scale that would let them compete, largely by shafting fishermen and other suppliers. Today's Alaskan crab fishery is dominated by a four-company cartel; in the Pacific Northwest, most fish goes through a single intermediary, Pacific Seafood.

These dominant actors entered into illegal collusive arrangements with one another to rig their markets and further immiserate their suppliers, who filed antitrust suits accusing the companies of operating a monopsony (a market with a powerful buyer, akin to a monopoly, which is a market with a powerful seller):

https://www.classaction.org/news/pacific-seafood-under-fire-for-allegedly-fixing-prices-paid-to-dungeness-crabbers-in-pacific-northwest

Golden Gate bought Red Lobster in the midst of these fish wars, promising to right its ship. As Goldstein points out, that's the same promise they made when they bought Payless shoes, just before they destroyed the company and flogged it off to Alden Capital, the hedge fund that bought and destroyed dozens of America's most beloved newspapers:

https://pluralistic.net/2021/10/16/sociopathic-monsters/#all-the-news-thats-fit-to-print

Under Golden Gate's management, Red Lobster saw its staffing levels slashed, so diners endured longer wait times to be seated and served. Then, in 2020, they sold the company to Thai Union, the company's largest supplier (a transaction Goldstein likens to a Walmart buyout of Procter and Gamble).

Thai Union continued to bleed Red Lobster, imposing more cuts and loading it up with more debts financed by yet another private equity giant, Fortress Investment Group. That brings us to today, with Thai Union having moved a gigantic amount of its own product through a failing, debt-loaded subsidiary, even as it lobbies for deregulation of American fisheries, which would let it and its lobbying partners drain American waters of the last of its depleted fish stocks.

Dayen's 2020 must-read book Monopolized describes the way that monopolies proliferate, using the US health care industry as a case-study:

https://pluralistic.net/2021/01/29/fractal-bullshit/#dayenu

After deregulation allowed the pharma sector to consolidate, it acquired pricing power of hospitals, who found themselves gouged to the edge of bankruptcy on drug prices. Hospitals then merged into regional monopolies, which allowed them to resist pharma pricing power – and gouge health insurance companies, who saw the price of routine care explode. So the insurance companies gobbled each other up, too, leaving most of us with two or fewer choices for health insurance – even as insurance prices skyrocketed, and our benefits shrank.

Today, Americans pay more for worse healthcare, which is delivered by health workers who get paid less and work under worse conditions. That's because, lacking a regulator to consolidate patients' interests, and strong unions to consolidate workers' interests, patients and workers are easy pickings for those consolidated links in the health supply-chain.

That's a pretty good model for understanding what's happened to Red Lobster: monopoly power and monopsony power begat more monopolies and monoposonies in the supply chain. Everything that hasn't consolidated is defenseless: diners, restaurant workers, fishermen, and the environment. We're all fucked.

Decent, no-frills family restaurant are good. Great, even. I'm not the world's greatest fan of chain restaurants, but I'm also comfortably middle-class and not struggling to afford to give my family a nice night out at a place with good food, friendly staff and reasonable prices. These places are easy pickings for looters because the people who patronize them have little power in our society – and because those of us with more power are easily tricked into sneering at these places' failures as a kind of comeuppance that's all that's due to tacky joints that serve the working class.

If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2024/05/23/spineless/#invertebrates

[yourangle-yuordevil]

Crowley bby you did your best and you deserves a gold "you tried" star but a group of two is NOT a clear definition AT ALL

[theoldkyokodied]

The Allegiance of the Ascended Vampire and the New God of Magic

[cringefailvox]

stolas tugging the disguise down to hide blitz better. blitz holding stolas in his lap. stolas peering up at blitz from the couch looking so fucking sad. blitz's little "go on" wave when stolas automatically looks to him for permission to go dance. it's about the familiarity despite the hurt. it's about loving someone and being angry with them but being unwilling to let either overrule the other. it's about being unable to stop caring even if it might be easier on both of you. i am sobbing facedown on the floor

[theabigailthorn]

people sometimes ask if I'd ever consider becoming a university professor and I'm like yeah sure I'd love to do a shit-tonne of unpaid busywork in the sexual harassment factory just so some cis guy can plagiarise my work while my debt-crushed students get arrested for daring to question why their fees are being invested in weapons companies

[chellustrates]

been invested in dunmeshi lately

[celestialcass]

cancelling Shadow and Bone right before they were going to do the Ice Court Heist and with a WHOLE SEASON of Six of Crows fucking WRITTEN AND READY TO GO and scrapping that too is evil incarnate netflix you deserve to go out of business forever

[jedi-starbird]

'Desert hermit Ben Kenobi develops a reputation as a crazy wizard because he keeps talking to thin air.'

No. This is Tatooine, talking to yourself is hardly the weirdest thing they've seen. Ben Kenobi, however, keeps having full on fucking screaming rows with thin air and seemingly gets replies back, which is decidedly a step up.

(They've managed to piece together that a major point of contention is the acquisition and raising of a child? Clearly Ben is a wizard that had a bitter divorce with a desert spirit and is working through a custody dispute)

[wombywoo]

"smile" pt. 2 📷