22 votes

Mitt Romney, American Parasite

Very damaging article:

"His formula was simple: Bain would purchase a firm with little money down, then begin extracting huge management fees and paying Romney and his investors enormous dividends.The result was that previously profitable companies were now burdened with debt."

The article:
http://www.villagevoice.com/2012-04-18/news/Mitt-Romney-amer...



Trending on the Web

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Just Seeing this Today - BUMP!

DAMN this is GREAT expose! I'm printing this one out to leave in 'conspicuous places'...

Ed in Phoenix - smiling.

Rights are like muscles; you must exercise them to keep them fit, or they will atrophy and die.

In case you were busy yesterday

and missed this, here it is again.

Extensive Documentary.. I only got to page 2 and it's massive

Of course, GOP at the top, to select this known failure is playing a bigger game and using you.

He smiles and nodds because

any other action simply shows him for what he is a Bankgangster front man muppet puppet. Are you kidding me Obama care is Romney care. A dictatorship of debt slavery. No is my final answer.

sovereign

Excellent article.

This is exactly why I personally have always disliked private equity, to put it mildly. Parasites is the perfect word for them. This article also links private equity practices with the scams that caused the mortgage collapse and that is an exact comparison that I have used myself. Here is a great quote from the article:

"The great irony is that his entire management experience at Bain Capital is buying companies and loading them up with debt and then looting the balance sheet," Foster says. "It's the very model that drove the American economy off the cliff then left other people to manage the wreckage."

I believe something similar happened in Massachusetts when he was Governor. There is a story to be told there since he destroyed every single electronic record of his tenure. These are definitely the stories that will be told by the Obama campaign and would torpedo Romney were he to become the nominee. Either that or he will sink the good ship America.

"Jesus answered them: 'Truly, truly, I say to you, everyone who commits sin is a slave to sin. The slave does not remain in the house forever; the son remains forever. So if the Son sets you free, you will be free indeed.'" (John 8:34-36)

Private equity is not the problem, the business practices

that Romney and his associations use are unethical and kept under the radar and since he and his buddies control media, any critics are silenced.

So, being in bed with Romney or being chummy with him are not a good thing. His quiet corrupt ways will rub off and be dominant.

There are lots of good private equity firms. A lot of small businesses have grown in this way and made America prosperous.

Bain business model will be ripe for Obama. Noone has touched his bus experience and even said a word about it.

jj

Perhaps you are thinking of venture capital.

There is a difference between private equity and venture capital and they use different models. The reason venture capital came into existence is that the equity markets are so heavily regulated in the US and difficult for smaller companies to raise money in. There are so many different jurisdictions and each has its own rules and there is overlap between the SEC and local authorities. Pooling capital from pension funds and large investors is simpler than raising it from a large number of investors while jumping through the regulatory hoops. Very few private equity firms that I am aware of invest in small, growth oriented businesses. That is the province of venture capital.

Private equity is mainly the business of the big investment houses and all the ones I have seen have acted in the same way as Bain Capital. They use the same technique as was used in the home mortgage market bubble. They look for a boring profitable company with solid assets and little debt, make the owners an offer they can't refuse and use mainly debt that is predicated on the assets of the company to buy it.

So they kick off with debt already loading the company down. Then they strip out the costs including labour and take on more debt to pay their fees and dividends and so turn the company into a basket case in short order. They also target big public companies and turn them over and over until they have become so bloated with debt they are ripe for a break up and sell off. They are also pump and dump specialists.

In my opinion these firms are a blot on the financial markets but they are also a symptom of the deeper disease that inflicts the entire economy...BIGNESS. They are squeezing the small and medium size companies out of business and creating asset capture for their big clients who can only grow through acquisition. Remember the slogan that was so popular before 2007...GROW OR DIE. This is a process of consolidation that can only end badly for most countries and most of their populations.

P.S. I did not vote your comment down. It is a legitimate observation and simply another view.

"Jesus answered them: 'Truly, truly, I say to you, everyone who commits sin is a slave to sin. The slave does not remain in the house forever; the son remains forever. So if the Son sets you free, you will be free indeed.'" (John 8:34-36)

Romney...

Could be completely destroyed before August...If the zombies in the GOP don't think this is just made up propaganda from the "leftist MSM"....

Support Liberty Media! http://benswann.com/contribute/ - http://www.unclesamtamovie.com/

We won't turn things around until we 1st change the media - donate to a liberty media creator today!

LittleWing's picture

I can only conclude GOP wants Obama to Win

Why else push Romney? He can't win with the same policies as Obama so I think the PTB would rather have Obama than Ron Paul because they know Dr. Paul actually would stop their gravy train of fiat backed tyranny and blood soaked corruption.

http://caffeinatedthoughts.com/wp-content/uploads/2012/03/in...

If Wars Can Be Started by Lies, They Can Be Stopped By Truth.