I just got through reading an article slamming Mitt. It is in "Rolling Stone" magazine and can be found here: http://www.rollingstone.com/politics/news/greed-and-debt-the-true-story-of-mitt-romney-and-bain-capital-20120829
One of the first things I have to say about this article is to look at the source. I have never seen a complimentary article in this rag about a republican. They will always color their articles to reflect poorly on rich people outside of the entertainment industry. In this particular article, the author praises the old builders of this country. Most other articles in "Rolling Stone" will run down the industrialists as polluters and people who take advantage of everybody.
The main thing that became abundantly clear to me as I ran through this article is that, yes, what Bain Capital did to companies was despicable. What companies like Bain are doing to our economy is also despicable. Most of the writers here and on our old forum have written about the demise of our culture and how it is being replaced with the gimme culture. This is happening on both sides as the haves continue to hoard even more of the available assets, leaving the have-nots with even less. Mainly, though, the government has been bought by these companies so that the legislation favors their despicable activities. Mitt did not do anything illegal. He may feel like he is completely, morally right in his path to riches. Those of us who have suffered through the aftermath of the venture capital game can tell the other side of that story. The vast majority of the population doesn't have the initial capital, the family connections, the ability to attend the top business schools in the country, or the insider training it takes to operate a venture such as Bain Capital. Most of us probably don't really want to, in all reality. Most of us want to give a fair day's work for a fair day's pay and go home to what really makes us happy. We depend on the movers and shakers to be moral and patriotic. The movers and shakers have changed. The movers and shakers include members of both of our major political parties. We will not have a change in this direction until we the people demand better.
Rolling Stone ripped Obama in this article:
ReplyDeletehttp://www.rollingstone.com/politics/blogs/taibblog/on-obama-s-sellout-20091214
This article may criticize Obama for policy and personnel decisions, but it is not the same type of hack job you find about republican candidates. Where was their investigation about the first couple's loss of their law licenses? How about young Barry's drug usage and possible continued usage? What about his career choices that somehow lead him all the way to the presidency of the US with very little political experience (or really not much real world experience of any kind). I could go on, but these types of skeletons would have been sickeningly explored in a republican candidate.
DeleteIn the end, all of it doesn't make much difference. Democrats will vote democrat and republicans will vote republican. I don't think the folks in the middle are swayed much by this type of sensationalism.
Chemotherapy makes you sick. No one likes chemotherapy. People avoid it unless they are about to die. Bain Capital is chemotherapy. They companies they took over were often about to die. All employees would have lost their jobs, all assets liquidated. Bain capital came in and did what it needed to do. It was painful. But in the end, the companies were saved. Jobs were saved. People at Bain made many. People at the companies taken over made money. Some jobs were loss, just like chemo kills off good cells and bad cells. But in the end, the best solution was obtained by all parties. That's the miracle of capitalism.
ReplyDeleteThe founder of Staples supports Mitt Romney.
Denial is everything as seem by the left.
DeleteThe chemotherapy analogy is not the way I understand this situation. Bain borrowed money from the big banks to buy companies with solid assets that they could exploit. They charged huge management fees to the companies and loaded them up with the bank debt used for the purchase. This left previously solid companies with sometimes insurmountable debt. Some actually made it out of the raid, others didn't. The ones that did had to cut a lot of jobs to cut costs so they could survive. Everything had to be done as cheaply as possible which made companies look overseas for cheap labor. Pure unadulterated greed destroyed many companies and many jobs.
DeleteI understand that you are backing the Romney candidacy and I will not fault you or insult you over it. I am not sure who is worse between the 2 legitimate candidates we have to chose from in this campaign. What I would like to see is a plan that would keep people from stripping jobs out of our sick economy. We need to make money the old fashioned way - by investing in and holding our investments in solid companies which provide the best goods and services in the world.
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DeleteSorry, typos in initial post.
DeleteHere is what I deleted, corrected:
Storm,
I actually read the RS article, and it seemed, ummm, slightly slanted. If it really were an important issue (I don't think it is this late in the game), I suggest a more detailed look at all of Bain Capital's endeavors. From the little I know, companies that are the target of LBOs usually are not in good shape to begin with. I think livestrongest's analogy is reasonably accurate.
Here, for example, is a bite that is rather against Bain, but note the comments posted. It deals with Ampad.
http://abcnews.go.com/blogs/politics/2012/05/what-bain-capital-left-out-of-its-ampad-defense/
and there's this (it IS from Wikipedia):
http://en.wikipedia.org/wiki/Ampad
Then there's this on Steel Dynamics:
http://news.investors.com/011312-597772-steel-dynamics-says-romney-led-bain-funded-its-success.aspx
http://en.wikipedia.org/wiki/Steel_Dynamics
Enjoy.
Jean
Storm,
DeleteSlightly slanted view on Bain.
They do not buy companies unless they are distressed and need a financial infusion to either grow or survive. Seems everyone, you included do not know enough about venture capital type companies to comment just criticize.
That's why we have the current failed economy today.
I had pre-warned everyone that the RS article was slanted.
DeleteSo louman, I'm responsible for the failed economy and your boy, Romney, is free and clear of any responsibility? I believe you have hopped to the defense of these LBO's because you feel the need to defend your candidate. The rest of the story is of no concern to you. Companies targeted for buyouts may have been floundering, but they had good cash flows and certain assets that were worth taking over. A great deal of the funds for these LBO's were BORROWED. The borrowed funds for the purchase were loaded into the companies debt which was an additional burden on the company. If the company failed, it was not a risk to Bain because they had already gotten their money out of the deal. Wonder what happened to all that borrowed money?
I may have the 30,000 foot view of this situation, but my view is not clouded by my political persuasions. I am seeking the truth to this and the other situations that have resulted in the demise of our economy. I don't believe that my ignorance of LBO's has lead this downfall.
My boy Romney, if he were African American would you call him boy?
ReplyDeleteHe's not my boy but a candidate running for president to replace the current office holder.
Your assumptions on venture capital companies are just assumptions. Not one example not to mention a comprehensive list proving your point. Just trash talk.
The downfall in our political system is a systemic failure of individuals to understand the issues and problems currently facing our country. Just listen to the 15 second sound bites from either candidate either proclaiming salvation or demonizing the other candidate.
The failure of our country is found in our people who find it easier to take a handout than to take a job and figure out a future. The failure of the Roman empire under Augusta Caesar was much the same. The people accepting a promise in exchange for power that I can fix it.
I'm far from a Republican or a Republican shill and certainly not an Obama supporter. To go to Romney's Bain days makes about as much sense as going to Obama's college days as neither are the same person today and their views from them are certainly different from today.
I would be a considered a fiscal conservative and am a registered Independent agreeing with little from the Democrats and agree with some of the Republican platform. Neither candidate represent me or my values. I just know that we cannot continue down the current destructive path.