He wants to take any discussion about his company Bain Capitol off the discussion table for the next few months till he is elected. How can you not discuss what he has been doing for most of his adult life and something that has given him a huge income? He got Enough money to say, hey, I can run for President of the United States kind of money. What a person does in life goes to the very heart of who he is, his character and his beliefs.
Leverage means you borrow money, Bain Capitol bought KB Toys for 305 Million Dollars In this case, he put into the company only 18 Million Dollars of his own. Wait. You can do this too on an extremely lower scale. The rest he borrowed against the value of the company. Then they restructured the business, you know, changed policies to hopefully make it more profitable.
Bain Capitol walked away with a 370 % return on their investment. Who gets to do that?? He goes in with 18 makes 85. Is this capitalism and is this good for America? I call it greed and speculation. Profiting off of a misfortune not helping anyone but yourself. Why shouldn’t this be an issue with Mitt Romney? It is not just an issue of what his decisions were it is also an issue with the tax code which encourages these leverage buyouts by treating debt differently than other forms of investment or capital.
The most confusing to me is that he comes along boasting about for the past year that he should become President because he knows a lot about business and that he knows how to create jobs. So, America listens to him and starts looking at how he did business and now he tells us not to scrutinize his business dealings. So, at what point should the conversation stop?
I say don’t blame Mitt for jumping on a way to make money quick even though the company he was supposed to help with his consulting didn’t end up with positive results. They all say here is our advice but there is no guarantee that it will turn you into profits again. Our fee must be paid regardless. Blame it on our government that created tax laws and little or no regulations that can make a company worth more dead than alive.