BREAKING FROM BLOOMBERG: "Romney’s Bain Yielded Private Gains, Socialized Losses"
DRIP DRIP DRIP - Bloomberg's title is spot on. It goes on to say, in essence, that Romney's type of business experience doesn't equate to the type of management skills needed to be President of the United States.
Mitt Romney touts his business acumen and job-creation record as a key qualification for being the next U.S. president.Oh, Bloomberg isn't quite finished. Article author, Anthony Luzzatto Gardner spares no punches. He goes on to say:
What’s clear from a review of the public record during his management of the private-equity firm Bain Capital from 1985 to 1999 is that Romney was fabulously successful in generating high returns for its investors. He did so, in large part, through heavy use of tax-deductible debt, usually to finance outsized dividends for the firm’s partners and investors.
When some of the investments went bad, workers and creditors felt most of the pain.
Romney privatized the gains and socialized the losses.
What’s less clear is how his skills are relevant to the job of overseeing the U.S. economy, strengthening competitiveness and looking out for the welfare of the general public, especially the middle class.Enjoy the article. Gardner shares the details of these Bain deals:
Thanks to leverage, 10 of roughly 67 major deals by Bain Capital during Romney’s watch produced about 70 percent of the firm’s profits. Four of those 10 deals, as well as others, later wound up in bankruptcy.
It’s worth examining some of them to understand Romney’s investment style at Bain Capital.
American Pad & Paper - Ampad
(Anthony Luzzatto Gardner works at Palamon Capital Partners, a private equity fund based in London, and was director of European affairs in the U.S. National Security Council in 1994-95. The opinions expressed are his o
Some other articles to help others understand that Romney's "business background" is a far cry from the Colonel Sanders and Henry Fords.
From the Guardian: Casino capitalism must face its judgment day
It is interesting to note, for those who have studied Naomi Klein's The Shock Doctrine, that ROMNEY/BAIN's MODIS OPERANDI is very similar to that of the IMF's treatment, although Naomi calls the IMF method Disaster Capitalism. If you haven't read the book, Naomi covers the last century's US covert involvement in Cental, South American countries, exposing that much of the misery created there was to provide multi-national corporations to move in and profit.
Go to minute 13:00 for the real story about our history
Load a country up with debt, pressure country to socialize losses, and privatize gains by privatizing state owned and/or government regulated businesses.
The poor and middle class suffer misery, while the Oligarchs like Mitt make millsions/billions for themselves and their "chosen ones"
Now Greece, Spain, Ireland, soon Italy, and the US are the IMF targets.
I prefer the phrase Vulture Capitalism.
If you want to dig into some of those deals in the Bloomberg article, you will find info/instructions on how to use the SEC Edgar to do so at a link in this diary:
For an Inside look Romney's Heart (bring a flashlight), here's his record taken directly FROM THE RECORDINGS OF THE MASSACHUSETTS SENATE, 2003:
In case you missed it, Bain owns a lot of radio stations:
Back to the studio!