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To: bray
Bain Cap is simply capitalism at its core. The weak companies need to be reorganized and the dead wood liquidated.

You couldn't be more wrong. Bain is an example of how Wall Street big business games the system and buys off politicians to rape, pillage and plunder the country.

"If you look at the dividends stuff that private equity firms do, and Bain is one of the worst offenders, if you increase the short-term earnings of a company you then use those new earnings to borrow more money. That money goes right back to the private equity firm in dividends, making it quite a quick profit. More importantly, most companies can’t handle that debt load twice. Just as they are in a position to reduce debt, they are getting hit with maximum leverage again. It’s very hard for companies to take that hit twice."

Bain drives companies into debt, transfers that money to themselves, and then gets to keep all of it when those companies go bankrupt while the banks and government pension insurance covers the losses. It's true Bain tries to help those companies stay in business because they can sell them later if they become profitable. But they don't really care because they make all their money upfront off of the loans and take no risk.

Their ability to pull off this scam has been cut down somewhat since 2007 thanks to credit being harder to get.

133 posted on 01/15/2012 8:10:24 AM PST by JediJones (Newt-er Romney in 2012!)
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To: JediJones
You JediJones, nailed the real issue that no one wants to admit about Bain and Romney's part in this type of practice. There's a vast difference between a company failing on its own and one that fails after being looted by predators such as Romney and Company.

I don't want to get bogged down in this discussion on this point, but Newt was dead on point with what he said but the establishment republicans couldn't handle the truth and trashed Newt.

My opinion is that if the voting public listens closely to what Newt is saying, he will prevail and be not only or nominee, but also next president of the United States.

161 posted on 01/15/2012 8:31:09 AM PST by Old Badger (I still like Palin because she will tell like it is!)
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To: JediJones

Not sure about Bain, but most of these corporate raiders were there to divest the retirement programs due to the 16-20% returns they were getting from the dot com bubbles. They also provided a service of getting rid of obsolete industries like Steel and old manufacturing jobs that were being attacked by the gummit and being shipped overseas to more business friendly environments.

Capitalism will go where there are profits to be made and Bain was doing exactly that. Those stories would have happened with or w/o Bain or any other company. In reality they were a natural result of gummit regulation.

Pray for America


222 posted on 01/15/2012 11:11:59 AM PST by bray (Ride Santorum back to Sanity)
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