Tuesday, July 17, 2012

ROMNEY THE LIAR KEEPS HIS PROFITS, DUMPS HIS LOSSES ON ***US***

Of all of Willard's endless lies, one of the most insulting is that his "business expertise" and "job creating skills" [retch] qualify him to be president. Now this item from Bloomberg destroys that nonsense rather nicely. Have a look at some excerpts. (Oh, and the highlighting is from me.)

What’s clear from a review of the public record during his management of the private-equity firm Bain Capital from 1985 to 1999 is that Romney was fabulously successful in generating high returns for its investors. He did so, in large part, through heavy use of tax-deductible debt, usually to finance outsized dividends for the firm’s partners and investors. When some of the investments went bad, workers and creditors felt most of the pain. Romney privatized the gains and socialized the losses

Thanks to leverage, 10 of roughly 67 major deals by Bain Capital during Romney’s watch produced about 70 percent of the firm’s profits. Four of those 10 deals, as well as others, later wound up in bankruptcy. It’s worth examining some of them to understand Romney’s investment style at Bain Capital.


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In 1992, Bain Capital bought American Pad & Paper by financing 87 percent of the purchase price. In the next three years, Ampad borrowed to make acquisitions, repay existing debt and pay Bain Capital and its investors $60 million in dividends. 


As a result, the company’s debt swelled from $11 million in 1993 to $444 million by 1995. The $14 million in annual interest expense on this debt dwarfed the company’s $4.7 million operating cash flow. The proceeds of an initial public offering in July 1996 were used to pay Bain Capital $48 million for part of its stake and to reduce the company’s debt to $270 million. 


From 1993 to 1999, Bain Capital charged Ampad about $18 million in various fees. By 1999, the company’s debt was back up to $400 million. Unable to pay the interest costs and drained of cash paid to Bain Capital in fees and dividends, Ampad filed for bankruptcy the following year. Senior secured lenders got less than 50 cents on the dollar, unsecured lenders received two- tenths of a cent on the dollar, and several hundred jobs were lost. Bain Capital had reaped capital gains of $107 million on its $5.1 million investment.


Read the whole thing, and tell me this:


How exactly does ANY of this qualify Willard for the presidency? Why does this LIAR, this PREDATOR, this VULTURE, this borderline THIEF think he has the right to govern this country?


And one more time...


WHAT'S IN YOUR INCOME TAX RETURNS THAT YOU DON'T WANT US TO SEE, WILLARD?

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