Mitt Romney – Troubles Ahead Because of Troubles Behind – Part 1One of the problems that lies ahead of Romney is what lies behind that fortune. He hasn’t run a “corner store” or a company that manufactures things or sells things or even provided a service. He ran Bain Capital, a leveraged buyout firm. Think the movie Wall Street and Gordon Gecko.This from a New York Times Article.
“Mitt ran a private equity firm, not a cement company,” said Eric A. Kriss, a former Bain Capital partner. “He was not a businessman in the sense of running a company,” Mr. Kriss said, adding, “He was a great presenter, a great spokesman and a great salesman.”
Mr. Romney learned the perils of campaigning on his business career in his first run for office, when accusations that Bain Capital had fired union workers at an Indiana company it controlled derailed his effort to unseat Senator Edward M. Kennedy, a Democrat, in 1994. “Basically, he cut our throats,” a laid-off worker said in a commercial attacking Mr. Romney.
Bain and its co-investors extracted special payments of over $100 million from each company, enabling Bain to make a healthy profit even before re-selling the businesses — a practice known as “getting back your bait.” Lenders say Bain is one of the firms that has taken the most in such payments, which companies usually make by taking on additional debt.
So when Mitt Romney campaigns on money borrowed from his personal fortune, let’s rememeber and remind others where that money came from. It came from outsourcing jobs, saddling companies with debt they could never repay and laying off thousands of workers.