How Bain (and other private equity investment firms) works:A group
of investors looks for companies that have a strong underlying business but are
in distress thanks to heavy debt burdens. The investors then take over the
company. Private equity investors buy control of the company's board by
purchasing the firm's stock. Private equity investors use their control of
the firm to take on more debt, while at the same time cutting costs by laying
off workers. Cash from the loans and cost savings are funneled back to the
investors. This looting continues until the company can't pay its debts.
When it finally collapses, the company files for bankruptcy to extinguish the
debt -- but private equity investors get to keep the gains they've already
reaped.This is NOT what the United States needs.
@worfRomney created great wealth for himself, for Bain, as well as
investors.Romney is responsible for the mixed the message that he
created wealth in the private sector as well as jobs in Mass..In the
private sector, Romney created jobs. At one point, it was 100's of
thousands of jobs, revised down to 10's of thousands, revised again down to
thousands of jobs. However, during his one term as the elected Gov.
of Mass., job creation in Mass., was 47th out of 50 states.Romney
needs to explain/defend/spin that monumental failure.
once again worf the market has been adding jobs for more then 24 months now and
congress not the president "pass" budgets.
People loss their jobs when Obama took over GM. You fire to save the others,
and re-build the company. GM still owes the tax payers thirty five billion
dollars, and BO doesn't know what to do.Hmm! How many people
have loss their jobs in the past three years, and how long has it been since
Barack has passed a budget?
One thing is sure -- Romney's scorched-earth policies at Bain show that he
does like to fire people (and, don't forget, outsource jobs and force
companies into bankrupty, all so that the rich investors in Bain could make even
larger profits). The country does not need that type of policy and action.
Of course he's defending his time at Bain Capital. He LIKES to
fire people, why wouldn't he defend that!