Tuesday, May 22, 2012

Destroy Jobs & Business, Make Money????

Even though Republican Mitt Romney no longer actually works for Bain Capital, he still receives income from the company.

NY Times:

...In what would be the final deal of his private equity career, he negotiated a retirement agreement with his former partners that has paid him a share of Bain’s profits ever since, bringing the Romney family millions of dollars in income each year and bolstering the fortune that has helped finance Mr. Romney’s political aspirations.....

....During his political career, Mr. Romney has promoted his experience as a businessman while deflecting criticism of layoffs caused by private equity deals by noting that he left Bain in 1999. But records and interviews show that in the years since, he has benefited from at least a few Bain deals that resulted in upheaval for companies, workers and communities. 

One lucrative deal for Bain involved KB Toys, a company based in Pittsfield, Mass., which one of the firm’s partnerships bought in 2000. Three years later, when Mr. Romney was the governor of Massachusetts, the company began closing stores and laying off thousands of employees. More recently, Bain helped lead the private equity purchase of Clear Channel Communications, the nation’s largest radio station operator, which resulted in the loss of 2,500 jobs.....

Do you remember KB Toys?  KB Toys was once a well-known toy store, until Bain Capital got involved. Grantcart at Democratic Underground has the sad details:

3. Bain Capital 'purchased' KB for the respectable price of $ 305 million dollars on December 8, 2000.


4. Bain Capital only offered $ 18 million in cash, the rest was leaveraged debt put on the company.

5. "Sixteen months after the buyout, Bain Capital paid itself $85 million in dividends in early 2002."

6. "January 14, 2004, K·B Toys filed for Chapter 11 bankruptcy protection and closed 365 stores."

7. Three years later the rest of the 156 stores were closed down....

Read the rest of the story of how Bain destroyed KB Toys at Democratic Underground.

>>>>  There is a new ad coming to a TV near you put out by the Karl Rove super pac. It involves a woman, in a kitchen, who ages before your eyes.  Even though the ad supposedly cost a lot of money to make and to place on the air, the woman's gray wig is a joke because it looks like it is made of plastic. Seriously, did they think we wouldn't notice?  

Besides, women aren't going to vote for Romney because his right wing policies will get rid of Planned Parenthood.


Mitt Romney also says in his big ad that he will give tax cuts to the "job creators."  What about the rest of the Americans?  Do only the rich get tax cuts?  Hasn't Romney heard about the deficit?