THE BAIN OF ROMNEY

Governor Rick Perry (TX) has been criticized by members of his own party as well as conservative commentators for refering to Mitt Romney, not as a Venture Capitalist but, as a Vulture Capitalist. Former Speaker of the House Newt Gingrich has come under scrutiny as well as for pointing out Romney’s history at Bain Capital. “These are attacks I expected from liberal democrats not conservatives,” has been the Romney response.

What has been the criticism of Romney while he was at Bain Capital? Setting up businesses to fail. Now, it should be pointed out that Bain, under Romney as CEO, did create breakout success retailers: Sports Authority and Staples. Mitt has stated that some businesses succeed and some fail. Conservatives who support a free market economy accept this concept and defend it. I am one of them. I believe in capitalism. Is it perfect? No, but it sure  beats communism, facism, socialism, and welfare. People start businesses to make money. Simple concept. There is nothing wrong with profits … the bigger the better is the goal. Why? To give you more capital to reinvest in your business and grow it to its full potential. Sometimes that works. Sometimes it fails. I would never criticize someone or even a corporation from making as much profit as they can. BUT what we conservatives must accept is that without some kind of limits and oversight then corrupt individuals can manipulate the system for personal greed which hurts the free market and those who work in it and need it to sustain families and homes.

While Romney boasts of what he did with Sports Authority and Staples he fails to mention what he did with K-B Toys (Kay Bee Toy and Hobby). When I was kid that was the only store I was ever interested in going into when our family went to the mall in the 1970’s. Bain bought out the toy retailer. They used the store’s credit to borrow and buy to the maximum. Not to reorganize, build more stores, or invest in marketing to grow the company. No. They used the money to buy more of their own Bain stock and sell off assets and purchased items for huge profits with NO intention of paying off the lenders and creditors. In other words, they used K-B’s name to go into huge debt. Once it could no longer borrow they went bankrupt. Hundreds of stores were closed and thousands of employees were laid off. But Mitt walked away with hundreds of millions of dollars. In the mafia it’s called a bust out. A club, store, or bar owner gets in debt to the mob (gambling). When he cannot pay it off he takes on the mob as a partner. They in turn run up the businesses debt by buying everything from vacation packages to cars to cases of alcohol on credit … all of which they turn around and sell at half the price they got it for. How? They have no intention of paying the loans or leins. Once they can’t borrow anymore the business goes bankrupt and they walk away pocketing all the money they made selling what they never paid for.

So my question to conservatives (of which I am one)… is this the form of capitalism we support and endorse as good for our country? No. Then why is Mitt being given a pass by conservative talk show hosts?

Businesses failing is one thing. It happens. It’s a fact. Not every business can be turned around. BUT purposely sinking a business while raiding its assets to walk away with millions in personal profit while employees are thrown to the wind is wrong. When this happens … liberals step in to regulate, mandate, and choke out honest business.

Click on the link and watch the video … invest 25 minutes before you vote: http://www.martybraemer.com/marty_2_006.htm