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Saturday, September 8, 2012

Is Bain Evil?

(If you'd like a break from politics, please scroll down)

Unless you've been living under a rock for months, you already know that the Democratic Party is demonizing Bain Capital as a result of Mitt Romney's being one of the founders.

Certain facts about Bain Capital bear consideration (hat tip to Z!), and the GOP needs to bring out these facts.

Excerpt from the conclusion of "Look Who Parks Their Cash at Bain," an article dated August 31, 2012:
Is Bain really a gang of corporate buccaneers who plunder their ill-gotten gains by outsourcing, euthanizing feeble portfolio companies and giving cancer to the spouses of those whom they fired? If so, union bosses, government retirees, liberal foundations and elite universities thrive on the wages of Bain’s economic Darwinism.

If, however, these institutions relish the yields that Bain Capital generates by supporting start-ups and rescuing distressed companies, 80 percent of which have prospered, then this money is honest — and Team Obama isn’t.
Among the groups which have benefited from Bain Capital:

* Illinois Municipal Retirement Fund ($2.2 million)
* Indiana Public Retirement System ($39.3 million)
* Iowa Public Employees’ Retirement System ($177.1 million)
* The Los Angeles Fire and Police Pension System ($19.5 million)
* Maryland State Retirement and Pension System ($117.5 million)
* Public Employees’ Retirement System of Nevada ($20.3 million)
* State Teachers Retirement System of Ohio ($767.3 million)
* Pennsylvania State Employees’ Retirement System ($231.5 million)
* Employees’ Retirement System of Rhode Island ($25 million)
* San Diego County Employees Retirement Association ($23.5 million)
* Teacher Retirement System of Texas ($122.5 million)
* Tennessee Consolidated Retirement System ($15 million)

Read the entire article HERE.

Democratic Party, thy name is hypocrite!

25 comments:

  1. No, they are not evil. They are not "job creators" either.

    A company in trouble turns to them to either save the company or to liquidate it for the maximum return for the investors.

    The thing we need to remind our confused friends is that if we take care of the free market and allow free people to participate in a free economy, the jobs take care of themselves.

    I would hate to be downsized, but in a thriving economy, there are other opportunities. Also, so jobs become obsolete.

    Should we still have government programs for candlestick makers, buggy whip manufacturers and wheelwrights?

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  2. SF, thanks for the hat tip, AOW.

    As far as job creators...in a way, yes. They keep companies alive...those jobs are saved by this type of company.
    or they fire the employees whose company is just not making it. What company (or country) can keep paying employees in a dying enterprise?
    That used to be the cost of doing business in the free enterprise system.
    But, with liberals today bent on a law for everything and THE COUNTRY OWES AMERICANS A LIVING......this doesn't seem admirable anymore; and look what's happening to our businesses as the die. Then people wonder why there are jobless.

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  3. One of my points with this post: to point out that some of the very folks bitching about Bain are actually benefiting from Bain. Look at those retirement funds!

    Although it may not be that Bain creates a lot of jobs, Bain and similar entities serve a purpose, I think. I have invested in one such entity -- a pittance of an investment. Things paid off for a while, but not now. I certainly feel the pinch of that bit of money not rolling in every quarter. For example, no new pairs of shoes!

    If I were getting a 113% return on an investment, I'd go out and BUY, which action certainly does create jobs and usually support manufacturing as well.

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  4. Silverfiddle,
    The thing we need to remind our confused friends is that if we take care of the free market and allow free people to participate in a free economy, the jobs take care of themselves.

    Amen to that!

    I would hate to be downsized, but in a thriving economy, there are other opportunities. Of course, at the moment our economy is ailing. Many who have been laid off via downsizing cannot find jobs or jobs commensurate with their experience.

    I recommend reading Dear President Obama, written by a 40-something man who had an excellent job in telecommunications -- until the present economic depression hit Excerpt:

    ...The job doesn't pay much. $8.25 hr for 20-30 hours a week. But it is better than nothing, I suppose. Certainly better than sitting at home staring at the computer trying to figure out where to look next, answering (and often ignoring) phone calls from creditors who want to know again and again what happened after 30 years of spotless credit.

    The job will do absolutely nothing to stop that, nothing to undo the financial damage done to me and my family these last three years. But it does put a little jingle back in my pocket and helps pay the utilities, keep the lights on, the house warm and the water running....


    This story is being repeated all over America!

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  5. You don't mean to say that Obama was stretching the truth a bit, do you?

    Ice that back for the first 24 hours.

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  6. Went through this yesterday with mustang.

    They buy (along with Daddy Bush's crew, Carlyle group) Dunkin' Brands.
    Now Dunkin' brands is ready to expand in Asia and west of the Mississippi. Okay, Bain supplies capital and all proceeds nicely.

    That's what an investment banker does. BUT BAIN IS NOT AN INVESTMENT BANK.

    As documented yesterday, Bain ran a scam that sold shares back to Dunkin' Brands through a debt issuance and Bain pocketed the proceed. Now PUT UP OR SHUT UP, how does sticking a corporation with an additional two hundred million in debt help them expand?

    Your next task is to name one (1) company Bain turned around.

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  7. Nostradumbass said:

    "They buy (along with Daddy Bush's crew, Carlyle group) Dunkin' Brands.
    Now Dunkin' brands is ready to expand in Asia and west of the Mississippi. Okay, Bain supplies capital and all proceeds nicely.

    That's what an investment banker does. BUT BAIN IS NOT AN INVESTMENT BANK.


    Even a blind squirrel....

    How very astute of you, duncy.
    You're correct, Bain is not an investment bank, its a private equity corporation.

    Like all businesses, its business is to make money. It does that by loaning large amounts of capitol and extensive advice in how to streamline and organize failing or marginal businesses.


    Your next task is to name one (1) company Bain turned around.

    Staples.
    That's your one company.

    You need to get off your socialist high horse. Your main problem is that someone made a dollar and it wasn't you.

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  8. You are correct numbnuts. Bain is there to extract capital.
    Now if you want to argue that the function of a PE firm is beneficial in the long run then go about that.

    However, if you want to state as Silverfiddle and others joining him in the fringe right sandbox do that Bain turns around companies an increase employment then you too are blowing it out your butt.

    Question: Dunkin' Brands, a successful company, is on the verge of expansion. How is that expansion facilitated by taking out a 1.25 billion dollar loan to finance a one time dividend payment for the privilege of being owned by their new masters?

    I'll be waiting.

    But the real news is that they can borrow at pretty low rates to extract hundreds of millions while you and the rest of the suckers can't get paid crap in interest on your savings. And you love this system.

    Oh, by the way, Bain was one of the companies to finance the Staples IPO. They did NOTHING to turn around the company which was quite successful before Bain.
    So try again.

    Oh, by the way, if you had been paying attention you would have read that I sensed Bain sniffing around Guitar Center and made a bundle on that one.

    Pitch till you win, Bobo. And vote for Romney because getting stiffed economically is not as important to you as stopping the homos.

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  13. @ Nostradumbass
    I did win, stupid.

    You lost with the fall of the Soviet Empire and like the rest of your troglodyte closet commie friends, are just to damned stupid to understand cause and effect.

    Of course they were in on the original IPO, one of the things they do is to take companies public.

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  14. @ Ducky --

    Comment deleted

    This comment has been removed by the author.

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  15. There... I saved the blog administrator the trouble.

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  16. Compare THIS with Bain:

    Obamanomics: 173K New Food Stamp Recipients Vs. 96K New Jobs

    Ugh.

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  17. I love it when Warren goes all Nostradumbass on ducky... :)

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  18. Is BAIN a BANE or a BOON?

    It all depends on your point of view. It's the former to Marxists, who hate private ownership and private control of ANYTHING (even one's own thoughts!), and who see the very IDEA of anyone's making a PROFIT as profoundly evil.

    It's the latter to those who believe in Capitalism as the best system yet devised to produce wealth and raise the standard of living for the greatest number possible in any given society.

    Collectivism cripples, maims and KILLS.

    Capitalism builds and runs successful MILLS.


    That neither system has produced Heaven on Earth is NOT a black mark against Capitalism. It's track record is FAR superior to that of its most powerful antagonist.

    HOWEVER, Capitalism untempered by Christian morality becomes rapacious and would quickly return us to a primitive dog-eat-dog state.

    Without a rational concept and acceptance of Jesus Christ, as He truly is, we are NOTHING.

    ~ FreeThinke

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  19. Silverfiddle said it very well.

    All corporations should be in the business of increasing shareholder value. Strangely as it may sound, most companies are not in the business to maximize money making. Very dew companies can claim to do that. Most companies are in the business they are in because that is what they know how to do. If they were really after money for money's sake, they would pronanly be in different businesses. I know of no mahor or moderate size company that is in business for the purpose of creating jobs. Job creation is a fall out of wanting to expand their businesses. Bain is in the business of helping struggling companies grow or to save them from faillure. That is wat the people at bain know how to do. They do it to maxize value for their shareholders; not to create jobs. They have a pretty good track record and a lot of jobs were created as a result. Those companies that Bain invested in that failed anyway, would have failed sooner had it not been for Bain.

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  20. "-FJ said... I love it when Warren goes all Nostradumbass on ducky... :)"

    Also!

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  21. Let's get simplistic:

    "A RISING TIDE LIFTS ALL BOATS."

    Some are yachts, some are freighters, some are cruise ships, some are barges, some are dinghies, some are canoes.

    Marxists get perpetually "outraged" and "indignant" that the rising tide does not TRANSFORM all boats into YACHTS.

    Marxists, you see appear to believe that in a properly "fair and just society" all Indian Tribes would consist if nothing but CHIEFS.

    Etc. etc. etc.

    Y--A--W--N!

    ~ FreeThinke

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  22. Go down a peg, and listen to Beethoven's Ninth Symphony.

    It'll do you a lot more good than wasting time trading insults with imbeciles over a bunch of phony issues.

    ~ FreeThinke

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  24. "Democratic Party, thy name is hypocrite!"

    I beg to differ. Thy name is COMMUNIST!

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