The actions of the top executives in other bankrupt newspaper companies were criminal only if you consider gross financial stupidity and recklessness to be jailing offenses. Who loads up newspapers—cyclical companies whose revenues are in secular decline with the disappearance of classified advertisements and the rise of the Internet—with tons of debt at precisely the wrong time? Financial geniuses, that's who.
writes Daniel Gross at Slate magazine a subject that has arisen on this blog on a few occassions and adding that
the newspaper companies that have failed wholesale were essentially set up to fail by inexperienced managers who believed piling huge amounts of debt on businesses whose revenues were shrinking even when the economy was growing was a shrewd means of value creation.
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