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So let's talk about
Romney and his past. He started and built the venture capital and
asset-management firm which was nothing more than a money-making machine. So
what’s wrong with that? Well Bain Capital is a company that doesn’t and has
never made anything; it invests. It spots trends, looks at promising companies
tapping into those trends and then stakes its capital on improving a company,
using Bain's sector and financial experts to, as they say, help company’s get
over a capital shortage or help it expand.
The companies that
Bain identified and invested in, and not in a small way, while Romney was at
the helm, were Microsoft, Stream Global Services, ModusLink, and StatsChipPac.
These companies are now among the biggest outsourcing companies in the world,
with call centers, factories and facilities, mostly in Asia, but also across
the globe, that support U.S. high-tech companies. The mission of these
companies was to help big U.S. companies outsource and offshore. And let me add
that this strategy was and is designed to support a low wage business model.
Even his own
Republican cohorts like Newt Gingrich said: “The Bain model is to go in at a
very low price, borrow an immense amount of money, pay Bain an immense amount
of money and leave. I’ll let you decide if that’s really good capitalism. I
think that’s exploitation.” Then slick Rick of Texas said: “There is something
inherently wrong when getting rich off failure and sticking it to someone else
is how you do your business. I happen to think that that is indefensible.”
So if he can be eaten
by his own, who by the way does not appear to think much of his thinking, raise
the issue - then why can’t President Obama raise the issue? Frankly, the
president should have done so during the debate on financial regulatory reform.
I should say there’s nothing inherently wrong with private equity, which plays an
important role in the economy. Let me add that there’s nothing wrong with
wealth and those who risk their capital in private-equity ventures should be
rewarded when those deals pay off.
Romney himself
acknowledges that the free markets need rules and regulations in order to
function and we know certain dealings are prohibited and should be criminal
like insider trading. So it is reasonable to ask whether some highly leveraged
buyout deals, of the kind that Bain and other private-equity firms often conduct,
should fall into the same thumb-on-the-scale category as insider trading.
Suppose a company is
failing and appears beyond rescue. Suppose a private-equity firm buys the
company with borrowed money, burdens it with more debt, and then spends the
next few years firing workers, selling assets, eliminating pension plans — all
while collecting handsome “management fees.” If you can recall losses at the
nation’s largest and supposedly best-run bank, JPMorgan Chase — at least $2
billion and perhaps much more.
This is what Rick
Santorum said in March: “I heard Governor Romney here called me an economic
lightweight because I wasn’t a Wall Street financier like he was. Do you really
believe this country wants to elect a Wall Street financier as the president of
the United States? Do you think that’s the kind of experience we need? Someone
who’s going to take and look after, as he did, his friends on Wall Street and
bail them out at the expense of Main Street America?”
If you read my
thoughts and words you know I don’t think much of the GOP or their henchmen but
I agree with Santorum in this instance where I have to ask the question is this
the guy we want to be president. I will go further and say Romney’s personality
traits remind me of the “Robber Barons” of old. I would suggest that this
so-called “Job Creator” needs to go offshore where he and his buddy’s send
jobs.
Would he do this to
the American Treasury and the American people if he were to become president? I
say, yes! And that’s my Thought Provoking Perspective…
http://johntwills.com
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