Bain Capital Got Bailout Money...

Discussion in 'Economy' started by JoeB131, Dec 27, 2011.

  1. JoeB131
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    JoeB131 Gold Member

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    Yup. Mr. "Business Expert" got a bailout....


    The never-aired “bailout” ad, shared with POLITICO by one of Kennedy’s advisers, remains an unexploded grenade from that race, underscoring Romney’s vulnerability in the first presidential election fought since the 2008 financial meltdown.

    According to former Kennedy advisers, the ad never ran because it turned out to be unnecessary: Kennedy had already broken Romney with a series of ads tying him to layoffs in Indiana.

    “The way the company was rescued was with a federal bailout of $10 million,” the ad says. “The rest of us had to absorb the loss … Romney? He and others made $4 million in this deal. … Mitt Romney: Maybe he’s just against government when it helps working men and women.”

    The facts of the Bain & Co. turnaround are a little more complicated, but a Boston Globe report from 1994 confirms that Bain saw several million dollars in loans forgiven by the FDIC, which had taken over Bain’s failed creditor, the Bank of New England.

    Read more: The Bain of Mitt Romney?s campaign - Alexander Burns - POLITICO.com
     
  2. Mad Scientist
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    Mad Scientist Clipboard Guy! Gold Supporting Member Supporting Member

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    Let's see, which would I choose?:

    Romney who got a bailout or,
    Obama whose entire Administration is run by G.E, JP Morgan and Goldman Sachs.

    Hmm.
     
  3. The Rabbi
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    The Rabbi Gold Member

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    You're an admitted bigot so who cares?
     
  4. Toro
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    I'm betting this story is twisted beyond belief. The FDIC often takes a first loss, then guarantees the liabilities so the banks can be sold. It's often cheaper than paying out deposit insurance.

    Of course, in politics, that doesn't necessarily matter.
     
    Last edited: Dec 27, 2011
  5. Truthmatters
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    I guess they are thinking they are getting Mitt wether they like it or not now
     
  6. JoeB131
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    JoeB131 Gold Member

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    Wouldn't be an issue if your boy Perry hadn't turned into a complete dud...
     
  7. JoeB131
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    JoeB131 Gold Member

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    I think it's more the principle of the matter. Rich guys get bailouts, working folks get pink slips, what color is your parachute?

    Works perfectly well into the narrative that Obama is going to use against Romney, he's a rich guy who made a shitload of money screwing working people like you.
     
  8. The Rabbi
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    He has run a less than stellar campaign, true.
    But that doesn't mean youre not a bigot.
     
  9. JoeB131
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    JoeB131 Gold Member

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    No, no, no, guy, he didn't run a "less than stellar campaign". He ran a grossly incompetant, head up his ass so far he could see what he had for lunch campaign.

    And sorry, man, eitehr you think Joseph Smith was talking to God or you think he was a fraud. There is no middle ground.

    I think he was a fraud.

    The End.
     
  10. The Rabbi
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    The Rabbi Gold Member

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    Irrelevant.
    You won't vote for Romney because he's a Mormon. That's the definition of bigotry.
     
  11. Toro
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    If this is what I think it is, it is no big deal, and the Democrats would be more than twisting the truth. I don't know the terms of the exact deal, and maybe I am wrong on this, but this is how the FDIC disposes insolvent banks. Unless, of course, you want the banking industry to be a wholly owned subsidiary of the US government, with politicians making all the decisions.
     
  12. JoeB131
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    JoeB131 Gold Member

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    Politicians twisting the truth? Whatever is the world coming to?

    A big rich company getting a government bailout when people are losing their jobs and houses, yeah, that just looks bad. The only reason Teddy didn't hit Romney with this in 1994 (according to the article) was that he had already gutted him on the AmPad factory, this would be just piling on.

    I don't think Obama is going to show restraint.

    I don't want the government running the banks, but when they screw up, and cost the taxpayers a lot of money, there should be consequences.
     
  13. Toro
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    OK, so here is the story. As one might expect, its full of lies. That, of course, is to be expected in politics.

    Here is what the ad claims

    - Romney laid off hundreds of employees
    - Taxpayers, i.e. the FDIC, "bailed out" Bain by writing down $10 million in loans from the Bank of New England.
    - Romney made $4 million.

    Now, I can understand how someone with zero knowledge of business might find this alarming, but even a cursory digging into the facts reveals that this is a political lie as it is a lie of omission.

    Here are the facts.

    - Romney was CEO of Bain Capital, a spin-off of Bain & Co, a management consulting firm. He started Bain Capital in 1983.

    - After Romney left, Bain & Co. incorporated in 1985, and senior partners of Bain & Co. borrowed heavily against their shares. By the end of the 1980s, the company was heavily in debt, and with the economy slowing, Bain & Co was in financial trouble. Some of that debt was owed to the Bank of New England.

    - The Bank of New England lent heavily to businesses and against real estate in the region. When the economy of New England went into the sewer and real estate tanked, the Bank of New England became insolvent. This had nothing to do with Bain and Co. or Mitt Romney. This was due to bad management at the bank. The Bank owed $2.3 billion more than it's assets were worth. Because of the bank's bad loan book, the FDIC had to take over the bank to protect depositors.

    - With Bain and Co in financial trouble, Mitt Romney was asked to become CEO in 1991 to turn the company around. When a company has too much debt and on the verge of bankruptcy, it is common for a company to renegotiate its loans. This happens all the time in business. It just so happens that some of the loans were to an insolvent bank taken over by the FDIC. Banks renegotiate their debt with trouble companies all the time to salvage some of their loan rather than risk losing much more in a bankruptcy. This is especially true for services companies with little tangible capital since the whole firm can cease to exist as all the partners can just walk out the door, leaving the bank with virtually nothing. If Bain and Co had gone under, the losses to the Bank of New England would have been greater than $10 million. Mitt Romney saved the taxpayers money, not the other way around as the dishonest political ad claims. Remember, the Bank of New England was insolvent on its own accord. It's financial plight had virtually nothing to do with Bain, other than Bain was another Boston company in trouble because of the lousy economy. Had the bank not been insolvent, then taxpayers would never have had to write-down the loan to Bain and Co. And had the loan not been re-negotiated, the loss to taxpayers almost certainly would have been greater.

    - Romney fired a couple hundred employees at Bain & Co. What the ad doesn't tell you, of course because it is intellectually dishonest, was that Bain and Co was on the verge of falling apart. Bain and Co employed a thousand people. Had Bain and Co gone under, many hundreds more would have lost their jobs. When companies are in financial trouble, companies must cut costs. The biggest cost is labor. This is especially true of a services business. So you have a choice - cut costs by laying off some people or risk the company going bankrupt and being liquidated and everyone losing their jobs. By saving the company, Romney saved jobs.

    - Romney was paid a salary of $1. The $4 million he made was for bringing the company back to health. Had he failed, he would have been paid $1. He was paid for being successful.

    Romney took a business in trouble and turned it around. Haters of capitalism such as leftards and über-RINOs may think this is bad, but most Americans admire such people.

    The article says that the ads were never used because Romney was going to lose the Senate race. That speaks volumes. The reason why these ads weren't used was because they are intellectually dishonest. Had they been used, it would have shown how desperate the Kennedy camp was. Since they weren't desperate, they weren't needed and thus weren't shown.
     
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    Last edited: Dec 27, 2011
  14. JoeB131
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    JoeB131 Gold Member

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    Most Americans are pretty tired of "Successful" businessmen who make eight figures while they lose their house and job...

    Again, let's pretend that Romney was as pure as the driven snow on this.

    Big fuckin' whup.

    People lost their jobs. He made millions. It's a terrible optic. It's Abu Grahib level awful.

    Perception is reality. This is the trap the Democrats hope Republicans walk into with Romney. Republicans think business is wonderful, so they think the wage slaves all think that, too. They don't.
     
  15. Toro
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    [​IMG]
     
  16. JoeB131
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    JoeB131 Gold Member

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    Duly noted you couldn't answer the point.

    You know, guess what, guy, elections are when the peasents get to vote. "Let them Eat Cake" usually gets you sent to the guillotine.
     
  17. Toro
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    I answered your OP. Your response was lame.

    You're a hater. You've admitted you hate the man. Thus, everything to you is going to look like a negative. You don't have much objectivity and thus little credibility.

    [​IMG]
     
  18. del
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    he answered all your points.

    you really should consider putting down the shovel and helping yourself to a steaming cup of stfu. :thup:
     
  19. JoeB131
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    JoeB131 Gold Member

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    You know what. you are right. I hate the man.

    I also hate Bin Laden. Oh, wait. He deserves my hate.

    I hate my scumwad ex-boss who fired all my friends so he could show a "profit". Oh, wait, that guy was pretty contemptable, too.

    Has it occured to you that if I hate Mitt Romney, he has fully earned every ounce of my contempt?

    However, my objectivity is right on. Going for the class warfare argument against Romney is a winner - BECAUSE IT HAS ALREADY WORKED!!!!

    TWICE.


    It worked for Ted Kennedy. It worked for Mike Huckabee.

    It will work for Barack Obama, who is a vastly more skilled politician than either of them.

    If you want to win this, an election that will be between the haves and the have-nots, then you have to go with a guy who is a self-made man, not someone born with a silver spoon in his mouth.

    Perry would have been a good pick, except he was like, Retarded.

    Newt might have been a good pick, but he has a past that is kind of ugly.

    The GOP has a lot of good guys from humble backgrounds who can make the argument that America is a place where hard work will reward you.

    Romney makes the argument that the rich will screw your hard work to make themselves richer, and an election is a place to pay that back.

    Oh, yeah, and he belongs to a whacky religion.
     
  20. JoeB131
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    JoeB131 Gold Member

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    NO, he really didn't. He put out the "club for greed" let them eat cake argument.

    Which isn't going to fly with guys who are afraid of losing their jobs and their homes.

    This is not going to be an election about whether Mitt has enough Grey Poupon. It's going to be an election about how working folks are not going to lose their homes after working hard all their lives.

    Obama's done a terrible job, but we don't win with a guy who blurts out stuff like "Corporations are people, too, my friend."
     

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