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Then he should fit right in, when he gets elected, and has to work with congress. Congress, which is FULL of folks that participate in unethical behavior repeatedly.
Every American "exploits" tax loopholes. They're called deductions and are part of law.
Then he should fit right in, when he gets elected, and has to work with congress. Congress, which is FULL of folks that participate in unethical behavior repeatedly.
Every American "exploits" tax loopholes. They're called deductions and are part of law.
these are all subjective words. Not every deduction is a "loophole." Not every loophole is unethical.
Bain in particular was engaging in unethical behavior for the sake of these deductions, and their own compensation.
I'm not saying we oughta throw them in jail, I'm saying that we don't want to knowingly put unethical people in the white house.
The existence of these types of leveraged buyout firms makes it difficult for anyone to run a business conservatively, with reasonable amounts of debt. It affects the entire marketplace in a negative fashion, and causes bad long-term decisions, and instability.
In good economic times, these guys can pick up a company, jack up its debt/equity ratio, increase its risk , decrease its tax rate, and sell it off at a handsome profit for doing nothing whatsoever.
Then later, in bad economic times, these highly-leveraged firms fail, taking down pensioners and bondholders, and shifting losses to the taxpayer.
There is a fine line between capitalism's inherent "creative destruction", and the sort of parasites that go around buying up healthy, conservative companies, leveraging them up to dangerous levels, sucking out all their capital, and then leaving them to fail.
The existence of these types of leveraged buyout firms makes it difficult for anyone to run a business conservatively, with reasonable amounts of debt. It affects the entire marketplace in a negative fashion, and causes bad long-term decisions.
In good economic times, these guys can pick up a company, jack up its debt/equity ratio, increase its risk , decrease its tax rate, and sell it off at a handsome profit for doing nothing whatsoever.
In bad economic times, these highly-leveraged firms fail, taking down pensioners and bondholders, and shifting losses to the taxpayer.
They're not going away any time soon. And shouldnt.
And whats the example? This happens every day, weak companies are bought out one way or another, many would fail on their own which is a worse outcome. The big wins Bain had far outweigh the losses.
They're not going away any time soon. And shouldnt.
And whats the example? This happens every day, weak companies are bought out one way or another, many would fail on their own which is a worse outcome. The big wins Bain had far outweigh the losses.
It's not about buying weak companies.
It's about buying relatively strong, low-debt companies, and hollowing them out for a quick buck. It's not ethical.
Quote:
Originally Posted by slo1318
They're not going away any time soon.
If we keep electing people like Romney, you're right, they won't go away. The problem will probably get worse; private debt levels will keep increasing (without any REAL investment in labor), American jobs will keep disappearing, but Wall Street will do fine.
It's about buying relatively strong, low-debt companies, and hollowing them out for a quick buck. It's not ethical.
If we keep electing people like Romney, you're right, they won't go away. The problem will probably get worse; private debt levels will keep increasing (without any REAL investment in labor), American jobs will keep disappearing, but Wall Street will do fine.
They built more than they took apart, but you already know that. The marketplace will replace week companies if there is a need.
Its all free enterprise, are you for legislation to stop leveraged buy outs? Where do you draw that line, you really want the government to do that?
They built more than they took apart, but you already know that.
how do you figure?
Quote:
The marketplace will replace week companies if there is a need.
what the hell, slo? can you not read? i already said that this is not about buying "weak" companies.
Quote:
Its all free enterprise, are you for legislation to stop leveraged buy outs? Where do you draw that line, you really want the government to do that?
Government tax preferences on debt is what allows this sort of thing. All you really need is tweaks to the tax code to eliminate their entire business model.
what the hell, slo? can you not read? i already said that this is not about buying "weak" companies.
Government tax preferences on debt is what allows this sort of thing. All you really need is tweaks to the tax code to eliminate their entire business model.
Its all about weak or underperforming companies, you cant separate it! Try and slice and dice it anyway you like, theres plenty of data showing they did far more good than bad.
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