Ritholz's mind boggles:
All this is possible because of lending asset-less backed credit. It is malinvestment, misallocation and crowding out what good those very veterans would be doing if not pointlessly making grilled cheese sammiches for hipsters paying with EBT cards.
And let me say again... ask people if they want to help a veteran they will say yes; buy american? yes; buy fair trade? yes; they will always tell you they are for good things and against bad things. Always. But when it gets down to it, they vote their pocketbook. You always win awards for "help a veteran" "fair trade" "buy american" but if you mix charity with your business, you won't survive. Emotional blackmail does not work in business, it wins awards, but it does not work. It tips your customers off to steer clear of you. Don't do it.
Feel free to forward this by email to three of your friends.
However, according to the company’s financial statements, it has about $1 million of assets and almost $3 million in liabilities. In the third quarter of 2014, it had sales of almost $1 million, on which it had a net loss of more than $900,000. The story is much the same for the first nine months of the year: $2.6 million in sales and a loss of $4.4 million.So the losses are accelerating astronomically. What do they do?
If you go to the company’s website, you will learn that “The company currently operates and licenses grilled cheese food trucks in the Los Angeles, CA area and Phoenix, AZ and is expanding into additional markets with the goal of becoming the largest operator in thegourmet grilled cheese space.” You can see an interview with the founder here. The company employs military veterans, and it even lists retired General Wesley Clark as vice chairman.And CPA Karen De Coster opined:
Surely we should have known there *was* such as thing as a “grilled cheese space”?So let's get in on the food truck craze (designed to destroy small businesses so city cores may be redeveloped more easily into India-style High Rise citadels amidst zombie corps on the streets), use emotional blackmail to tart-up the prospectus (help a veteran), and then pump and dump. Are veterans to be spared nothing?
...
Thing is, former NATO commander General Wesley Clark owns a 5% stake in the companyand is Vice Chairman of the Board. A further look finds a 10-Q filing from 2014 that indicates that the company will not be able to continue as a “going concern” due to the incurred net losses and working capital deficit. That’s CPA-Speak for “yer effed.”
All this is possible because of lending asset-less backed credit. It is malinvestment, misallocation and crowding out what good those very veterans would be doing if not pointlessly making grilled cheese sammiches for hipsters paying with EBT cards.
And let me say again... ask people if they want to help a veteran they will say yes; buy american? yes; buy fair trade? yes; they will always tell you they are for good things and against bad things. Always. But when it gets down to it, they vote their pocketbook. You always win awards for "help a veteran" "fair trade" "buy american" but if you mix charity with your business, you won't survive. Emotional blackmail does not work in business, it wins awards, but it does not work. It tips your customers off to steer clear of you. Don't do it.
Feel free to forward this by email to three of your friends.
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