Romney’s Bain Yielded Private Gains, Socialized Losses

[Tx4obama]

Romney’s Bain Yielded Private Gains, Socialized Losses

Mitt Romney touts his business acumen and job-creation record as a key qualification for being the next U.S. president.

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.

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.

-- snip --

Full article here: http://www.bloomberg.com/news/2012-07-15/romney-s-bain-yielded-private-gains-socialized-losses.html

A Good Read

[Th1onein]

1. And that leopard ain't gonna change his spots, either. We don't want this asshole as POTUS

This is a prime example of disaster capitalism. He will engineer problems and then get rich off of them. He'll bankrupt this country and it's people. We are already down the road to losing our middle class, and the Republicans want to send them the rest of the way by destroying the safety net. Romney will be the death of this country.

Thank you for posting this important story. I'm passing it on to all of my friends and family.