Newt hits Romney hard on Bain Capital

[HUGGY]

That's exactly what is going on. Even after it's been debunked by every fact check and investigative entity. They are pandering to the clueless, their base who are less intelligent and not following along.

Caveats aside, what Bain did to working people is actually pretty disgusting, and it resonates with average working folks.

What Bain did was saved companies and opened up jobs in the companies that Romney saved before he went to the Olympics. If some companies couldn't be saved, that was happening all over America. And we have to see which were under Romney's management.

"saving people"???

A leveraged buyout is more like a really big guy, a bully, going down to the beach and throwing some poor schmuck into a rip current then yelling at him that he will swim out and save him if he promises to give him everything he has. If the poor drowning guy with no choice agrees to the big bullies terms then the bully may or may not save the guy depending on if the stuff he has is valuable in of it self. If it looks to the bully like it would just be easier to walk away with the drowning guys possessions...that's exactly what the bully does.

 

[Toro]

"saving people"???

A leveraged buyout is more like a really big guy, a bully, going down to the beach and throwing some poor schmuck into a rip current then yelling at him that he will swim out and save him if he promises to give him everything he has. If the poor drowning guy with no choice agrees to the big bullies terms then the bully may or may not save the guy depending on if the stuff he has is valuable in of it self. If it looks to the bully like it would just be easier to walk away with the drowning guys possessions...that's exactly what the bully does.

Or not.

This paper provides the first comparative examination of the consequences of leveraged buyouts (LBOs) and traditional corporate acquisitions on employment and wages using a uniquely constructed panel data set covering the period 1996-2006. Employing propensity score matching combined with difference-in-differences analysis, the key findings are: (1) related and unrelated acquisitions have employment consequences of a similar magnitude, (2) related and unrelated acquisitions have the largest negative impact on employment followed by non-private equity backed LBOs, (3) acquisitions in the same industry cause an increase in wages, and (4) private equity backed LBOs have no significant impact on either employment or wages.

What are the Wage and Employment Consequences of Leveraged Buyouts, Private Equity and Acquisitions in the UK? by Kevin Amess, Sourafel Girma, Mike Wright :: SSRN

Private equity critics claim that leveraged buyouts bring huge job losses. To investigate this claim, we construct and analyze a new dataset that covers U.S. private equity transactions from 1980 to 2005. We track 3,200 target firms and their 150,000 establishments before and after acquisition, comparing outcomes to controls similar in terms of industry, size, age, and prior growth. Relative to controls, employment at target establishments declines 3 percent over two years post buyout and 6 percent over five years. The job losses are concentrated among public-to-private buyouts, and transactions involving firms in the service and retail sectors. But target firms also create more new jobs at new establishments, and they acquire and divest establishments more rapidly. When we consider these additional adjustment margins, net relative job losses at target firms are less than 1 percent of initial employment. In contrast, the sum of gross job creation and destruction at target firms exceeds that of controls by 13 percent of employment over two years. In short, private equity buyouts catalyze the creative destruction process in the labor market, with only a modest net impact on employment. The creative destruction response mainly involves a more rapid reallocation of jobs across establishments within target firms.

Private Equity and Employment by Steven Davis, John Haltiwanger, Ron Jarmin, Josh Lerner, Javier Miranda :: SSRN

 

[HUGGY]

"saving people"???

A leveraged buyout is more like a really big guy, a bully, going down to the beach and throwing some poor schmuck into a rip current then yelling at him that he will swim out and save him if he promises to give him everything he has. If the poor drowning guy with no choice agrees to the big bullies terms then the bully may or may not save the guy depending on if the stuff he has is valuable in of it self. If it looks to the bully like it would just be easier to walk away with the drowning guys possessions...that's exactly what the bully does.

Or not.

This paper provides the first comparative examination of the consequences of leveraged buyouts (LBOs) and traditional corporate acquisitions on employment and wages using a uniquely constructed panel data set covering the period 1996-2006. Employing propensity score matching combined with difference-in-differences analysis, the key findings are: (1) related and unrelated acquisitions have employment consequences of a similar magnitude, (2) related and unrelated acquisitions have the largest negative impact on employment followed by non-private equity backed LBOs, (3) acquisitions in the same industry cause an increase in wages, and (4) private equity backed LBOs have no significant impact on either employment or wages.

What are the Wage and Employment Consequences of Leveraged Buyouts, Private Equity and Acquisitions in the UK? by Kevin Amess, Sourafel Girma, Mike Wright :: SSRN

Private equity critics claim that leveraged buyouts bring huge job losses. To investigate this claim, we construct and analyze a new dataset that covers U.S. private equity transactions from 1980 to 2005. We track 3,200 target firms and their 150,000 establishments before and after acquisition, comparing outcomes to controls similar in terms of industry, size, age, and prior growth. Relative to controls, employment at target establishments declines 3 percent over two years post buyout and 6 percent over five years. The job losses are concentrated among public-to-private buyouts, and transactions involving firms in the service and retail sectors. But target firms also create more new jobs at new establishments, and they acquire and divest establishments more rapidly. When we consider these additional adjustment margins, net relative job losses at target firms are less than 1 percent of initial employment. In contrast, the sum of gross job creation and destruction at target firms exceeds that of controls by 13 percent of employment over two years. In short, private equity buyouts catalyze the creative destruction process in the labor market, with only a modest net impact on employment. The creative destruction response mainly involves a more rapid reallocation of jobs across establishments within target firms.

Private Equity and Employment by Steven Davis, John Haltiwanger, Ron Jarmin, Josh Lerner, Javier Miranda :: SSRN

Rubbish!

Double talk crap.

"new establishments"? Ya..where? China? No mention of the disruption to the "target" companies communities or what happens to wages. This "paper" is just a lame appology and white wash for the real destruction caused by comapines like Bain. Vulture Capitalism leveraged buyouts is not GOOD for anyone but the vultures.

 

[Remodeling Maidiac]

Bain and companies like them are a necessary part of our economic fabric.

They do the same God Damn thing Obama and Bush did with the Bail outs and stimulus. Only more successfully. Bains job is not to save your job its to be a profitable business just like every other company.


STOP FUCKING WHINING ABOUT IT ya look like a bunch of spoiled children

 

[Goodoledays]

Sure they can. But the American people do not like every type of capitalism. Buying distressed companies, firing all the American workers, and sending those jobs to China while collecting big bonuses for doing so is not the capitalism that Americans support.

That's a small part of the story and it is being made into the entire story. Every business that Bain wound down was dead man walking. Those employees were gone and likely received a far better package under Bain's takeover than would have happened eventually. The proceeds from saving what little could be save then went into creating successful companies with more jobs being created. A story that takes more than a soundbite and a bit more comprehension. The true facts of the matter usually do.

Bain sent them to China and the patient recovered. Meanwhile, Americans were left without jobs.

Not as many as Ubama has sent overseas. Want a sample. Take a look at where your almighty leader had the windmills made. The rest you can use google if you still know how.

 

[JoeB131]

That's exactly what is going on. Even after it's been debunked by every fact check and investigative entity. They are pandering to the clueless, their base who are less intelligent and not following along.

Caveats aside, what Bain did to working people is actually pretty disgusting, and it resonates with average working folks.

What Bain did was saved companies and opened up jobs in the companies that Romney saved before he went to the Olympics. If some companies couldn't be saved, that was happening all over America. And we have to see which were under Romney's management.

No, what Bain did was destroy good working jobs and replace them with crappy McJobs with no benefits.

If you look at the companies where jobs were slashed (AmPad, GS Steel, Dade Instruments) and compare them to the ones where jobs were supposedly created (Staples, Domino's Pizza) you can see the difference.

Those jobs have no benefits, no wages no real chance for security.

 

[JoeB131]

Bain and companies like them are a necessary part of our economic fabric.

They do the same God Damn thing Obama and Bush did with the Bail outs and stimulus. Only more successfully. Bains job is not to save your job its to be a profitable business just like every other company.


STOP FUCKING WHINING ABOUT IT ya look like a bunch of spoiled children

Bain and companies like them are parasites that have convinced stupid people they are vital organs.

The biggest lie of plutocracy is that wealth creates jobs.

Horseshit.

Consumer demand creates jobs.

 

[Remodeling Maidiac]

Bain and companies like them are a necessary part of our economic fabric.

They do the same God Damn thing Obama and Bush did with the Bail outs and stimulus. Only more successfully. Bains job is not to save your job its to be a profitable business just like every other company.


STOP FUCKING WHINING ABOUT IT ya look like a bunch of spoiled children

Bain and companies like them are parasites that have convinced stupid people they are vital organs.

The biggest lie of plutocracy is that wealth creates jobs.

Horseshit.

Consumer demand creates jobs.

And without Bains infusion of cash into failing businesses many thousands of more jobs would have been lost to all the failing companies they saved.

 

[Goodoledays]

He also made his fortune hiring people.

But that doesn't fit the narrative of a hater...

Except that Bain wasn't in the "Job Creation" business. It was in the profits business. And if it could make a profit messing up the life of a working guy, so be it.

Since nearly all of us have had one time in our lives where someone's greed had a negative impact on our lives, this really doesn't look good for old Mittens. Can't get back at my ex-boss, but I can vote against this Suit Wearing Douchebag.

And as my Drill Sergeant used to say, "One 'Oh Shit!" erases a hundred 'Attaboys'."

Correct. They are in the wealth creation business.

Well then try and show a business in the U.S. that isn't there to make a profit. The thing is when they do and succeed they employ more. Going into business is taking a risk. Something the left doesn't understand.

 

[Goodoledays]

romney's problem is this... he can't run on his record as governor because his views as governor almost exactly mirrored the president's. so he has to talk about his experience in the private sector where he claims to have been a "job creator".

once he made his "job creator" status the center of his campaign, it became fair to point out that he's full of it and was really gordon gekko.

i heard someone say it perfectly yesterday and i think it was Andrew Ross Sorkin... he said, it is impossible to ascertain whether mitt was a good job creator or a bad job creator based on the actions of Bain Capital.... and what he was... was a good investor.

yet, being a good investor is not the same thing as being a "job creator" because, as you well know, Toro, what benefits shareholders is not necessarily what benefits the company or its employees.

Oh yes it does benefit the company and its employees. If it weren't for the investors there wouldn't be the employees. And if it is a good investment they will either reinvest more to that company or others. Meaning more employment. You really need to learn what business really means.

 

[Goodoledays]

First commandment of the GOP handbook

Thou shall not speak the TRUTH about another Republican's record.

And the first commandment of the DNC handbook.

THOU SHALL HIDE THE TRUTH TO THE END ABOUT ANOTHER DEMOCRAT'S RECORD.

 

[Toro]

Not true.

The majority of capital invested in private equity is from pensions and endowments - unions, government workers, schools, hospitals, charities, etc. - not rich people.

As the papers stated, when compared to similar companies - the targets - there is little difference in employment changes.

"saving people"???

A leveraged buyout is more like a really big guy, a bully, going down to the beach and throwing some poor schmuck into a rip current then yelling at him that he will swim out and save him if he promises to give him everything he has. If the poor drowning guy with no choice agrees to the big bullies terms then the bully may or may not save the guy depending on if the stuff he has is valuable in of it self. If it looks to the bully like it would just be easier to walk away with the drowning guys possessions...that's exactly what the bully does.

Or not.



What are the Wage and Employment Consequences of Leveraged Buyouts, Private Equity and Acquisitions in the UK? by Kevin Amess, Sourafel Girma, Mike Wright :: SSRN

Private equity critics claim that leveraged buyouts bring huge job losses. To investigate this claim, we construct and analyze a new dataset that covers U.S. private equity transactions from 1980 to 2005. We track 3,200 target firms and their 150,000 establishments before and after acquisition, comparing outcomes to controls similar in terms of industry, size, age, and prior growth. Relative to controls, employment at target establishments declines 3 percent over two years post buyout and 6 percent over five years. The job losses are concentrated among public-to-private buyouts, and transactions involving firms in the service and retail sectors. But target firms also create more new jobs at new establishments, and they acquire and divest establishments more rapidly. When we consider these additional adjustment margins, net relative job losses at target firms are less than 1 percent of initial employment. In contrast, the sum of gross job creation and destruction at target firms exceeds that of controls by 13 percent of employment over two years. In short, private equity buyouts catalyze the creative destruction process in the labor market, with only a modest net impact on employment. The creative destruction response mainly involves a more rapid reallocation of jobs across establishments within target firms.

Private Equity and Employment by Steven Davis, John Haltiwanger, Ron Jarmin, Josh Lerner, Javier Miranda :: SSRN

Rubbish!

Double talk crap.

"new establishments"? Ya..where? China? No mention of the disruption to the "target" companies communities or what happens to wages. This "paper" is just a lame appology and white wash for the real destruction caused by comapines like Bain. Vulture Capitalism leveraged buyouts is not GOOD for anyone but the vultures.

 

[Goodoledays]

Of course I keep it in a skeptical view. But unless and until proof to the contrary is brought forth its all I have to go by. IF its false it will be exposed. You guys act like were going to vote tomorrow and we have to nail down every fact yesterday. Our primary process is doing its job just fine, calm down.

Thats not being a sceptic at all..Thats believing what you want to believe because you want to believe it. You've posted that figure over and over and always presented as fact. So cut it out

I posted that figure twice, TODAY, within minutes of each other.

Find your whale elsewhere Ahab.

Thats ok Grampa. The left only believe something when Ubama makes a statement on it. When someone makes a statement they want proof. When Ubama does they figure its got to be correct. Its what we call being brainwashed. Got to feel sorry for the left for being so brainwashed now days.

 

[Goodoledays]

Bain Capital represents everything that is wrong with vulture capitalism.

Kind of sounds like the way Ubama campaigns. Always pointing the finger on someone else for his mistakes.

 

[Goodoledays]

Considering that they also destroy jobs, yeah, they kind of are.

They take on firms that are already collapsing. Their success rate was about 70% when the new business failure rate is about 50%

Youre letting your hatred for Romney cloud your judgment.

I would argue that those firms were just fine until ROmney got involved.

So would the people working for them.

"Labor is prior to, and independent of, capital. Capital is only the fruit of labor, and could never have existed if labor had not first existed. Labor is the superior of capital, and deserves much the higher consideration." - Abraham Lincoln.

Well dude...that labor would not have existed if the capital wasn't there to build that business for the labor to exist. Take a business course. It might clear your questions.

 

[Goodoledays]

Venture Capital- Destroying your job so rich douchebags can buy more polo ponies...

Yup. That's a total winner in 2012. Romney needs to totally go with that.

Pull your pants up, your ignorance is showing.... again.

Just being blunt.

I think most of America with their underwater mortgages, busted 401K and reduced salaries have had enough of the "geniuses" who manipulate the system.

If you really think nominating a clueless rich guy is going to do the trick, I think you don't hang around enough with real Americans. Oh, yeah, and he belongs to a batshit crazy religion. That helps, too.

So you keep judging Romney on his religion. How about if I said I don't want Ubama for another four years because hes a N_ _ _ _ _. Will that be ok?

 

[Goodoledays]

Dumbfuck....why are you defending Newt's comments. (take a look at your pic).

Why are you defending the RINO so vigorously?

A broken clock is correct twice a day.

Not if the handlers oops I mean the handles are broken off.

 

[Goodoledays]

I agree with Mitt. You bought a house and now it's worth less than what you paid for it? Tough shit.

wow. And you will probably be shocked when Romney loses in November because you don't understand how truly evil that statement is.

Not as evil as Ubama cutting AZ out of the picture when it came to protecting the boarder. Just shows Ubama has a much more evil mind.

 

[GoneBezerk]

The Newt got caught lying about Romney's Bain record, so Obamination copies him......typical of a scumbag following another scumbag.

 

[Goodoledays]

I would much rather take all the bankers who drove the country into a ditch, put them on trial, and put them in prison to be sodomized by a serial killer.

That would make me feel a lot better.

This isn't about making money at this point for me. I'm just happy to get by. But I want to see those responsible pay for what they did.

I'm kind of vengeful, you see. I think our real problem is we don't get revenge enough in society as an object lesson.

The problem with the bankers and the speculators is that they screwed it up, the rest of us paid for it once with the economic downturn they caused, and again with the government sponsored bailout they demanded.

Capitalize reward, socialize Risk. It ain't a left right thing, man.

You are clearly whining because you lost money. That is very, very obvious. So you want a scapegoat to satisfy you own loss since you lost and others didn't.

That's pretty pathetic.

I want them punished for the wrong they did.

Just like I would want a guy who broke into my house and took my TV punished.

Well why not go all the way. Just sue all of America. Remember its the people in America that makes up the economy. Its not just the banks.