Near Junk Garbage Business Buys Even Larger Junk Garbage Business

Confusing headline I know but I just didn't know how else to write it.

Republic Agrees to Buy Allied Waste for $6.1 Billion (Update3)

June 23 (Bloomberg) -- Republic Services Inc. agreed to buy larger rival Allied Waste Industries Inc. for $6.1 billion to become North America's second-largest trash hauler as a weaker economy and rising fuel prices strain waste-removal companies.

Smaller company buys larger company.

Republic's debt is currently rated BBB+ by Standard & Poor's, the third-lowest investment-grade rating. Allied's debt has junk status, ranked BB by S&P, or two levels below investment-grade.

One is just above junk. The other is junk. Both are garbage companies.

A competing offer for Allied is unlikely, Goldman, Sachs & Co. analysts led by David Feinberg, said in a note to clients. Goldman said ``rational pricing'' in the solid-waste industry would be among the benefits of the transaction and would help Waste Management as well.

That's good news!

Is it because I love hoarding garbage? Certainly not.

Is it because I'm currently an Allied customer? I am but that's not it.

Is it because I'm looking forward to rational pricing? Nope!

Is it because "rational pricing" backs my stagflation theory? Bingo! How sweet is that? It is as sweet as the smell of rotten eggs. Perhaps I should have left that as a rhetorical question. Speaking of eggs...

Shoppers Leave Grocery Store for Egg Farm

One of the creative ways people are saving, is cutting out the middle man and making the trip here, where eggs are cheaper.

What are they doing to get there? Walking?

The price of grocery store eggs has gone up at the highest rate since 1984, according to federal tracking data. The national average is now climbing to $3 a dozen.

Considering the size of the planet, I'm not all that far from this egg farm in Pasco. It is about 200 miles. If I drive slow and/or slipstream behind a Hummer (presumably also driving to Pasco to buy eggs) I can make the round trip on one tank of gasoline. Cheaper eggs here I come!