Before I start this post let me comment on last night’s GOP debate # 2 million something or at least it seems like that many…….
5 candidates that are left met on a stage in South Carolina….if you expected fireworks you were disappointed, at least I was….Newt and Juan was the big deal of the debate…..my take…..Mitt looked stiff and a game show host……Paul was still crazy and tired…..Perry was there…..Newt was…well….Newt and Santorum did everything but beg……the big revelation of the night was……..Obama sucks….his policies suck…..and Dems suck also…..any questions? Oh almost forgot…..Mitt SUCKS!
I need to tell my regulars to sit down and take a deep breath….today I am going to say something that I NEVER thought that I would say….and even thinking it is making me nauseated….but I have to say! For once I can safely say that I…….(wait for it)……agree with Newt, Perry and Palin….that is right! I agree!
I know! How can this be?
Let me explain…before people start slinging rotten fruit at me…..Newt, Perry and Palin are calling Mitt a vulture capitalist and all other Repubs are lining up to defend Venture capitalism, not necessarily Romney but the idea that venture capitalism as a job creator…..the pundits are ignore what Bain did and instead focusing on the good that is suppose be venture capital……and their argument is a generic “free enterprise”…….
Venture capital is a general term to describe financing for startup and early stage businesses as well as businesses in “turn around” situations. Venture capital investments generally are relatively high risk investments, but may offer the potential for above average returns.
Venture capitalists expect to be able to sell their stock, warrants, options, convertibles, or other forms of equity in three to ten years: this is referred to as harvesting. Venture capitalists know that not all their investments will pay-off. The failure rate of investments can be high; anywhere from 20 to 90% of the enterprises funded fail to return the invested capital.
Yes, Bain had a success or two…..Staples comes to mind….but there were some that will not make into an ad for Romney for President….like the steel come that Bain invaded stripped benefits from workers, fired many and turned the pension fund over to the government to honor the commitments….to the tune of $4 billion (I believe)……“To achieve that end, Romney closed over a thousand plants, stores and offices, and cut employee wages, benefits and pensions,” Stephanie Cutter said in a letter. “He laid off American workers and outsourced their jobs to other countries. And he and his partners made hundreds of millions of dollars while taking companies to bankruptcy.”
So, Bain is a vulture….it would go in fire people, drop benefits, drive up the paperwork to make the company appear more profitable than it was…….when the company was sold they made millions off the exaggerated stock prices, took management fees, basically stripping everything out of the company of value and leave the company to wither and die…..true…not all….but most…
When the Repub populists like Newt, Perry and Palin call Bain a vulture they are mostly right…..and now the GOP cannot have “free enterprise” under attack by other Repubs….there will be ad after ad showing all the “good” that Bain has done on Main Street……the spin will be hard and relentless…….
Let us be honest…….venture capitalist do not go into it for job creation…..it is about wealth creation…period!