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Author: sykesix Big gold star, 5000 posts Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 60213  
Subject: Re: Newt's 28 minute 'Bain Capital' Movie Date: 1/15/2012 5:16 PM
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Here's a permalink:

http://www.politifact.com/truth-o-meter/article/2012/jan/13/...

I gotta say though, they only came up with three false or mostly false decisions. Gingrich has been known to lie that much in one sentence.

Kidding aside, Bain had some notable successes, but those usually were usually when Bain provided needed start up capital. However, in literally dozens of instances, Bain used leveraged buyouts to take over companies, extract enormous management fees paid for by stripping off the assets, and then spinning off the shell of the company leaving it with crushing, high interest debt, with little choice but to declare bankruptcy.

The counter argument goes something like this: Those companies would have gone out of business anyway, so Romney did everyone a favor by gutting them. I find that unlikely. If Romney hadn't extracted enormous wealth from the company and left it with a manageable debt burden, it might have survived. Or, if it would have gone out of business anyway, then there would have been more money to return to legitimate creditors (like suppliers or conventional lenders) if Romney hadn't taken his juicy cut off the top.

It should also be said that for many of these deals, Romney partnered with noted scum-bag and convicted criminal Michael Milken to finance these deals (The Gordon Gecko character in the movie "Wall Street" was partly modeled on Milken).

http://en.wikipedia.org/wiki/Michael_Milken

I would have loved to have been a fly on the wall with Romney and Milken in the same room discussing potential greenmail targets.

And Romney brought this on himself. At first he was claiming he created 100,000 jobs. Then it was 10,000. Now it is "thousands." Hey, he brought up his record. It is fair to examine it.

And even in success stories like Staples I find it unlikely Romney created many jobs. Sure, lots of jobs were created at Staples, but they came at the expense of jobs at other office supply stores. Perhaps this is a necessary and vital part of capitalism, but I don't see much, if any, net job creation. Sucking the life out of viable companies certainly isn't job creation.
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