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Exactly. And those businesses would have gone out of business anyway, with or without the gypsies. In fact, the cash that paid for the crap might have kept a cashier employed just a little longer.
I think that would be a very good idea... even though its discussion here is purely a red herring. It has nothing really to do with the actual discussion underway.
Bain is what Bain is. Its sole purpose for existing is to make money for its investors. It is not about "creating jobs" or "saving companies." Neither of those are criteria relevant to its purpose or its actions, and therefore if it does either it is purely an accident. If it can make money by destroying a company, it will destroy the company.
Example:
American Pad & Paper. (Ampad)
Bain investment: $5 Million
Actions:
1) Saddled the company with an additional $420 million in debt, taking $100 million of it as return on the original investment.
2) Slashed worker's pay.
3) Eventually liquidated the company, paying off unsecured creditors (including the employee pension fund) at the rate of two tenths of a penny on the dollar.
But Bain investors got their 1900% return on investment.
Example:
GS Technologies
Same strategy as above, but the return was only 100% this time ($16 million on an $8 million investment). However, when bankruptcy was declared, the federal Pension Benefits Guarantee Corp had to spend $44 million to rescue the pension plan, and worker pensions were slashed by as much as $400 a month.
In short, Bain investors made their $8 million at the price to taxpayers of $44 million.
Is any of this illegal? No.
Is any of this immoral? Well... that depends on perspective. They certainly kept their promises to their investors.
Is any of this how we believe our government should be run? I leave that as a rhetorical question. It is clear that not all of us are likely to arrive at the same conclusion.
Bain Capital is a terrible organization, but no they are not the illuminati. This isn't Houston playing russian roulette with Gas prices for kicks.
Bain is just another hack-n-slash and salvage industry that cuts jobs for the benefit of share holders, ect.
Like someone else has stated....goal is put money into a company to either turn it around or sell and make a profit. Creating jobs is a by product.....profits are the goal, and that is a great thing in a capitalist society....in many cases people get to keep jobs longer than they would have if the firm had not invested in them, so jobs were extended...
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