“Do you realize that Dade Behring was a huge success story? The bankruptcy filing was only temporary. The company boomed after that. When they were finally sold to Siemens in 2007, they employed over 6,000 people. They boasted worldwide sales of $1.7 billion and had a net worth of 0ver $6 billion.”
Agreed. There is a lot more gray in this story than this liberal democrat muckraking journalist presents.Did it not escape anyone that the company was purchased for 75 million, held 9 years and over the years a 16.5 million “profit” was made along with recouping the investment.That is less than a 3% annualized return on their risk exposure of 75 million.Yup they leveraged the purchase as the majority of investors do when buying a business or real estate and the returns were magnified on the investment.Did you pay all cash for your home or did you put 10 ot 20 percent down? Did the house double in value by 2006? Were you a greedy pig for refinancing, taking money out and buying a vacation home with it? When the market crashed in 2008-2009 was it wise as a matter of hindsight that you did not sell in 2006 or that you “looted” the house back then by refinancing it to deploy your gain in other areas to try to achieve growth.
There is a lot more to this story starting from the fact that the union pension fund was already deleted when Bain purchased the company and the Federal Pension Guaranty fund was already on the hoof to the union employees for the shortfall and no one in their right mind is going to assume that liability. So they negotiated that the liabilty for the shortfall would remain with the entity they purchased it from. Altho the gubmint ponied up for the shortfall Bain reaped zero economic benefit from it.There were union problems going forward with a recalcitrant union refusing to budge as the steel industry went into depression,fierce global competition coupled with falling steel prices,and it simply became cheaper to make steel and its products overseas.
Sure Bain made mistakes along the way, But so did real estate investors and many others investing in businesses that went into recession.
There are other ways to get at Romney than take this cartoon path of “fat cats” raping the workers and eating their young populist storyline.
Did you pay all cash for your home or did you put 10 ot 20 percent down? Did the house double in value by 2006? Were you a greedy pig for refinancing, taking money out and buying a vacation home with it? When the market crashed in 2008-2009 was it wise as a matter of hindsight that you did not sell in 2006 or that you “looted” the house back then by refinancing it to deploy your gain in other areas to try to achieve growth.
Wonderful example!
Attacking one of the core beliefs of conservatives "Free Enterprise" makes no sense. If Bain had broken the law a high profile guy like Romney would have been indicted.