Mitt Romney: Pump and dump artistSubmitted by moroots on Tue, 01/10/2012 - 12:04
A more in-depth look at Bain's performance and the wider performance of private equity funds. Short summary: much of private equity is a pump-and-dump scheme, where the PE firm loads up the company with unsustainable debt while also stripping out all the equity in management fees and dividends. This leaves companies without the necessary capital to repay their debt.
45% of Bain's pre-1/1/2008 deals have either gone bankrupt or are in distress, meaning they have a credit rating of B3 or lower.
If that's Mitt's past, can we trust a President Romney not to finally push America's debt burden over the edge and into total insolvency?