How Mitt Romney Ripped Apart Sealy Mattresses

When the "great vampire squid" of Bain Capital relentlessly jammed its blood funnel into Sealy Mattresses:

Relative upstart Tempur-Pedic agreed to buy Sealy this week for $2.20 a share, paying less than $250 million for its stock and assuming its $750 million debt.

...Companies like Bain Capital call themselves private equity firms, but as I explained in my book “The Buyout of America” they really provide no equity. They make money by putting businesses at risk. They say they turn struggling businesses around. But Sealy was not a turnaround — it was the market leader in its sector.

Romney first tried to boost Sealy’s profits, so it could pay its debt, by acquiring one of Sealy’s biggest retail customers, Mattress Discounters. But MD expanded too quickly and went bankrupt.

Bain then pushed Sealy to design the no-flip, or one-sided, bed. To cut costs they eliminated the bottom cover, making the bottom simply a foundation. With two-sided beds, consumers can flip their mattress, like they rotate a tire, for longer wear, so getting rid of the bottom would shorten the life of the mattress.

But Bain was more interested in cutting costs and boost short-term profits than in providing value to consumers. For a while, it didn’t seem to matter. Bain and co-investors sold — “harvested,” if you like — Sealy in 2004 to fellow private equity firm KKR for $1.5 billion, pocketing $741 million for its $140 million investment.

KKR then took Sealy public in 2006 at $16 a share. Like Bain, the new owners spent little on Sealy national advertising, likely figuring it was better to lock in a decent return. Tempur-Pedic, meanwhile, was spending big on ads, outflanking Sealy, which missed the chance to make good competing foam beds.

Now, Tempur-Pedic is the leader for beds selling for more than $2,000, and consumers trust it as the standard for foam mattresses.

A longtime Sealy executive told me he was very sad about last week’s sale. “I don’t like being acquired by an upstart like Tempur. We should have figured out how to handle them in the marketplace.” Now, some of Sealy’s 4,500 workers will likely lose their jobs in the merger.

The Ever-Changing Face Of Europe

Europe since 1000 (ht/t Doug on Facebook).

Zingers

Sometimes events just before an election - "October Surprises", and the like - can actually affect the result of the election. Nevertheless, these events are quite rare - rarer than people realize. Public opinion usually isn't that volatile.

The only election I can remember where the results actually turned over 48 hours just before an election was the Spanish Election of 2004, where shocked voters struck out angrily against brazen, toxic, George-W.-Bush-inspired lies:

In a result which defied most predictions, the opposition Spanish Socialist Workers' Party (PSOE), led by José Luis Rodríguez Zapatero, won a plurality of seats in Congress of Deputies, and was able to form a government with the support of minor parties. The socialists received more votes than expected as a result of the government's handling of the 11 March 2004 Madrid train bombings. In the early moments following the attacks, the national government maintained the theory of the ETA responsibility; when evidence pointed to the possibility that an Islamic extremist group was behind the massacre, the ETA theory lost weight. If Islamic extremists were responsible, the attack could have been perceived by the electorate to be a consequence of the Spanish government's support of the invasion of Iraq.

Here's another discussion, in an American setting (but which, interestingly, leaves out Nixons' brazen manipulation of negotiations with the North Vietnamese in 1972):

In the end, the Republican plan didn't work and the letters were never released. Why? Perhaps because Wendell Willkie decided it was beneath him. Perhaps because the Republicans were worried it would cause a backlash. Or perhaps it was because Willkie had a mistress and FDR made it clear that two could play the October Surprise game. Whatever the reason, the letters stayed in their vault and Roosevelt ended up winning the election by 5 million votes.

Singing The Praises Of The Australian Reserve Bank

At least someone, somewhere, is getting these things right:

I've noted previously the remarkably underdiscussed fact that Australia hasn't had a recession in over 20 years. My explanation of why that is is that they have the best central bank in the world, the Reserve Bank of Australia, which just cut interest rates and sent stocks soaring after a period of market weakness driven by pessimism about Chinese growth. This is an important issue because if it's true that Australia has recession-proofed itself through sound monetary policy, there are lessons that larger countries could be learning here.

Worried Ohio Nuns Just Want You To Know

Via Jezebel.

"California Bans 'Gay Cure' Therapy"

I need to check my vision. I read "bans" as "buns":

Gov. Jerry Brown has signed legislation that makes California the first state to ban a controversial form of psychotherapy that's aimed at making gay teenagers straight.

Effective Jan. 1, mental health practitioners are prohibited from performing sexual orientation change efforts — known as reparative or conversion therapy — for anyone under 18.

Getting Stoked For Halloween

"Home Improvement" Bear

I wondered at the beginning whether it was a good idea to bring these two parties together: the unlicensed plumber and the needy homeowner. But it was such a simple problem - or so it seemed. Her washing machine drain line was clogged. So, just unclog it. Right? Everyone had the purest of motives. She needed value for money. He needed money for value.

But then, there were signs the drain line itself was compromised, so they decided to dig it up and replace it. That involved days and days of hard, difficult work. (I thought it was a bad idea, because the plumber didn't have the resources to engage on such a demanding project, but by then the project had a life of its own.)

During that phase, the plumber noticed the homeowner liked to make Teddy Bears. So, he asked her to make one for himself. Something special - for the memories! Green eyes and nose; slim, not fat; no bow tie. She proceeded to start making one.

Then, signs appeared that the main sewage line itself had too many roots in it. The drill bit snapped on the rooter machine the plumber was using to attack the main sewage line. So, in addition to suspected roots, there was now a jagged object sitting in the main line that was perfectly-designed to cause clogs all by itself.

Then, the new washing machine line backed up. She stopped using most of her house's plumbing and moved into the guest house instead. Quarreling by now, the plumber and the homeowner brought the project to a standstill.

Then her next-door-neighbor, who apparently has decades of grudges against her, called the City. Apparently the plumber's chaos had caught his attention. And the plumber's dog irritated him too.

A City Inspector came over and demanded: "Where is the permit?" There was no permit. It hadn't occurred to anyone to get a permit. It never does when money and value are the objects.

He made further comments too. "This work isn't done to Code. I live just a short distance away, and will be passing by here regularly, so don't try anything underhanded. And where is this dog I keep hearing about?"

So, she was forced to pay a $274.00 fine. What a mess! And the main sewage line still requires attention!

In fact, if you gave a liberal budget to two inept people and told them to cause as much Home Improvement chaos with it as possible, you couldn't have done a better job than these two did.

(My special burden of guilt is that I brought the two of them together!)

But she follows through on her promises, bless her heart! And so, a bit late, here is the plumber's new Teddy Bear....

Thinking Ahead To Halloween

(h/t Kennard)

Toasty Sacramento September

Apparently September was a record month for warmth in Sacramento, and it continues into October:

It's been more than a decade since Sacramento experienced 100-degree weather in October, but the city could broil under century-mark heat today or Tuesday.

The National Weather Service is forecasting 99 degrees for today and 100 on Tuesday, very hot weather for early autumn. The toasty temps are courtesy of a high-pressure system parked over Northern California.

The hot temperatures come in the wake of 26 days of 90-degree weather or hotter in September - breaking the previous September record of 24 set in 1974.

The average high temperature for early October days is about 80 degrees. The last time downtown Sacramento reached the triple-digit heat mark in October was Oct. 2, 2001.

And NWS forecasters say the latest the mercury ever reached 100 in Sacramento was Oct. 10, 1991.

Near normal weather should return by the end of the week, forecasters promise.

Most people I know don't like it, but I find it very agreeable. Warmth means life. Last night on TCM, they were showing "A Night To Remember", about the sinking of the Titanic in the frigid north Atlantic. I, for one, preferred watching the movie from a nice, cozy easy chair.

The Only "Zinger" That Ever Really Counted

Presidential debates make one look for "zingers."

Nevertheless, this is the only one that ever hit home, and it wasn't even a presidential debate. It too, didn't matter in the long run.

A Little Too Paranoid About The "October Surprise"

It's fairly-easy to spook liberals these days about an "October Surprise":

According to a highly reliable source, as Mitt Romney and President Barack Obama prepare for the first presidential debate Wednesday night, top Republican operatives are primed to unleash a new two-pronged offensive that will attack Obama as weak on national security, and will be based, in part, on new intelligence information regarding the attacks in Libya that killed U.S. Ambassador Chris Stevens on Sept. 11.

...The source described the Republicans as chortling with glee that the Obama administration “definitely had intel” about the attack before it happened.

...He said they were jubilant about their new strategy and said they intended to portray Obama as a helpless, Jimmy Carter-like president and to equate the tragedy in Libya with President Carter’s failed attempt to rescue American hostages in Iran in 1980. “They are so excited about it,” he said. “Over and over again they talked about how it would be just like Jimmy Carter’s failed raid. They feel it is going to give them a last-minute landslide in the election.”

The Talk Radio folks, like Sean Hannity, were already pushing this angle last week, so it's not much of a surprise this week. Nevertheless, let's take a look at it.

It would not be surprising to me if terrorists had taken root in this year's semi-lawless Libya and used the occasion of a protest march to launch an assault against U.S. interests. It would not be surprising either if the U.S. caught intelligence of the upcoming attack. Indeed, the U.S. Embassy statement released in Cairo just prior to the attack, the one the GOP keeps referring to as appeasement, makes the most sense seen in that light. The diplomats could see the ten-ton truck of violence barreling right towards them, and they were doing the best they could to stop it. It also would not be surprising if the U.S. underestimated the size of the problem and botched its response. U.S. Administrations sometimes say silly things, and the Obama Administration would hardly be the first.

This is what the Middle East is like. All the time! 24/7!

So, what here, exactly, is the "October Surprise"?

Remember, the Iranian Hostage Crisis gained such disruptive power because it was so unprecedented and lasted so long. It was the TOP HEADLINE every single day for more than a year-and-a-half. Iran was the most important U.S. client in the area at the time, and its loss hurt.

In contrast, Libya hasn't dominated the headlines with anything like that power.

Plus, in any election, it's always the INCUMBENT ADMINISTRATION that is in the best position to execute an "October Surprise." It is the greatest power of incumbency, after all! Nixon proved that, in 1972, with all of Henry Kissinger's false Peace Process "progress." People like George McGovern saw right through it at the time, but that didn't mean it didn't work. People can be such chumps!

The U.S. has less power in the Middle East than conservatives like to pretend. Saber-rattling has a lot less punch in a marketplace full of saber rattlers. So, let's follow the GOP's lead and use the month of October to debate the Middle East. It's an important subject, after all. The truth is actually the Obama Administration's friend here. Lay it all out, problems and all. Let the voters sort it out, as they should.

And watch the Obama Administration pull some "October Surprises" of their own!

GOP Staffer Vs. Celebrity Partier

This is awesome! You have to envy Lindsay Lohan for coming up with this. I wish I had thought of it!:

Lohan met LaBella — who is from Valley Village, Calif., but has been working in Washington — during her night hanging out at trendy clubs Double Seven and 1Oak.

He works for Rep. John Shimkus and is the nephew of comedian Heather McDonald.

Christian LaBella, 25, was charged with misdemeanor assault and harassment on Lindsay Lohan. However, the charge was later dropped.

After the club closed around 4 a.m., the actress and LaBella wound up back in her room at the W with other friends, including celebrity booker Claus Hjelmbak.

At about 6 a.m., she took LaBella’s cell phone and got upset after discovering the pictures of herself taken earlier in the evening, police sources said. He had been emailing them to friends.

LaBella demanded she return the phone, but Lohan balked — and told cops he threw her down on the bed and scratched her. At one point, the troubled actress locked herself in a bathroom. She finally ran out of the 15th-floor suite — where rooms top $500 a night — and scurried down several flights of stairs, with Hjelmbak in tow.

When the “Freaky Friday” star and her hunky pal began walking back up the stairs, they again encountered LaBella, sources said.

She claimed that he choked her from behind and threw her to the floor before Hjelmbak yanked him away, cops said. Lohan pulled the fire alarm for help as he fled, police said.

Cops who responded spoke to Lohan and began looking for LaBella, who was trapped in the stairwell because the alarm had disabled the elevators.

As he exited the stairwell, police grabbed him. Lohan identified him as her attacker, and he was taken to the 13th Precinct stationhouse.

The country needs a wrestling match between a worthy GOP champion, and a celebrity with the right amount of crazy. But Christian LaBella and Lindsay Lohan isn't the best possible fit. What I'd like to see is Karl Rove vs. Courtney Love. Yeah! The visuals would be awesome! Like this guy says!:

Feel Like Makin' Love - Roberta Flack (1974)

The late 1970's were known for disco music, of course, but there was also a worthy dance challenger. This is an example of that genre.

Jim Stafford Schtick

Closure Of The Sacramento Campbell Soup Plant Will Be Very Painful

This plant is only three miles from my house. Closure of the plant will rip open a new hole in the economy of South Sacramento, and the reverberations will be felt for miles in all directions, as customers disappear from shops, crime increases, and dependency grows. And what happens to the adjacent power plants (SPAC & Carson Ice-Gen)? Will they close too?:

It's an economic oasis in one of Sacramento's most impoverished neighborhoods – and an enduring symbol of the region's Big Tomato roots.

No wonder the shutdown of Campbell Soup Co.'s 65-year-old factory in south Sacramento, announced early Thursday, quickly became a bombshell felt up and down Franklin Boulevard and as far away as the Governor's Office.

The closure, to be completed in stages between now and next July, will eliminate 700 solidly blue-collar jobs, some paying $20 an hour or more. It won't stop Sacramento's late-arriving economic recovery, experts said, but it will hurt the job market and take another piece out of the region's middle class.

"Good jobs for poor people," said Monsignor James Church, pastor at nearby St. Rose Catholic Church. "This is going to whack our area – we're poor enough as it is."

Plant worker Dave Martin said the company had been dropping hints for months that the factory was in trouble, with managers complaining in staff meetings about slumping soup sales and bloated production costs. Campbell's has been losing market share as consumers drift away from canned soup.

Managers told workers that the Sacramento plant, whose workforce is represented by the Teamsters, pays the highest wages of any Campbell's factory, according to Martin. He added that some of the plant's chicken-noodle soup production was moved to another facility a month ago.

"Finally, today, they made the announcement they were closing it down," said Jesse Shanker, who has worked at the plant 22 years. "They told us that soup sales are going really, really slow, and it has been sliding over the years. And right now, they can't afford to run this plant."

Andy Williams - Moon River

RIP, Andy Williams. We will miss you!

I remember learning this song from my fifth-grade teacher, Mr. Chavez.

Most of the music education I got in elementary school consisted of learning 50 or 100-year-old songs from records - "Swanee River", and the like.

In contrast, Mr. Chavez, who played guitar, had the radical philosophy of teaching songs that were actually popular at the time; songs you could easily hear on the radio - at most, five years old. It was from him I learned Peter, Paul, and Mary's "Puff, the Magic Dragon", their cover of "500 Miles", Bob Dylan's "Blowin' In The Wind", Andy Williams' "Moon River", plus a host of other songs. What a refreshing change!

Freedom Of Speech Only Gets You So Far

Too high-profile even for California:

On September 14, TPM reported that the U.S. Probation Office for the Central District of California was reviewing Nakoula’s case. In 2010, Nakoula had been sentenced to 21 months in federal prison on bank fraud charges, and ordered not to use computers, cell phones, or the Internet for five years unless he got an OK from a probation officer. The shortened clip of “Innocence of Muslims” that was uploaded to YouTube in July was uploaded by a user named Sam Bacile, an alias which has been linked to Nakoula by media reports.

Step One's Golden Anniversary

Step One Health and Fitness studio will celebrate it's 25th anniversary on Sunday, November 18th. And they're expanding! They have a brand-new room that will be open soon!

"WallDruggie" Gets Her Fifteen Minutes!

She earned it! Now for mine!:

Albuquerque, New Mexico resident and Breaking Bad fan Nancy Bymers (WallDruggie on Flickr), has undertaken an incredible mission to source out the real life locations of scenes from the television series Breaking Bad. If you’re a fan of the show you will undoubtedly recognize all of the locations in the gallery below.