Much of Mitt Romney's campaign to become the next president of the United States is based on his business back ground.
He has claimed that he has created jobs during his business career.
Mitt Romney has spent his business career mostly in the private equity and buyout business. This has involved using mountains of invested money to buyout companies and re-sell them later at a profit.
What is for sure is that he has created unemployment as many of the companies he has loaded with debt have gone bust and employees have lost their jobs.
He has also been responsible for thousands of redundancies which have been made in companies after acquistion by Bain Capital. This is standard procedure for these companies.
Bain Capital have been successful in making money for investors, but this is not as difficult as you may think it would be for a number of reasons.
1......If you are aware of a growing amount of money going into this type of business, it creates a supply and demand issue for the mountain of cash. Growing funds in the lead up to the financial crisis meant it was relatively easy to buy a company and sell it within a few years at a nice profit. Much the same way as there was a lot investment in property which had the same result on house prices. (The mountain of cash is money that has accumulated in all kinds of investments including pension funds and deposit accounts- Basically growing investments in general).
2......If you were struggling to find a buyer from another buyout company then there is always the option of a floatation on the stock markets. Stock markets don't tend to think things through so much as the stock brokers and hedge funds work much more short term. Many companies end up being floated on the stock exchanges after Mitt Romney's team have loaded them up with debt. And many collapse shortly afterwards.
(It is difficult to understand this should go on without being outlawed, but part of the reason it continues is that the press and media seem to turn a blind eye to what is really going on. Much of this is due to the support given by the press and media to the stock markets. The truth is the stock markets are used as a dumping ground for companies that Private Equity Firms, Hedge Funds and other types of buyout company want to off load because they want to use the capital to invest elsewhere !)
3........ Cutting costs of an acquired company are easy when you know you are not going to keep it for long. One way is making redundancies. Another way of accumulating cash and cutting costs is selling parts of the company off.
So you see there is nothing difficult about the way Mitt Romney has earned his money. I don't see how being president of your country and a back ground of private equity go together. If Romney becomes president it will be because he has successfully misled the United States People.
Mitt Romney and the company he formed, 'Bain Capital' are responsible for;-
...................Thousands of redundancies
....................A number of complete business closures
....................Companies getting into massive unjustified debt
....................A lower standard of product or service by many of these businesses
...................Increased prices due to added costs by Bain Capital and increased debts
Although Mitt Romney left Bain Capital some years ago he still receives a pension of many millions of dollars based on the profits of the buyout and private equity business.
Much of the money for his election campaign will come from damage that he and his company has created which probably dates back to what will probably be seen as the beginnings of the 2007 financial crisis. Yes, I believe it goes back to the eighties and the private equity and buyout business was very much at the very beginning.
Should he become President ?
The answer is a definite no.
But of course he does give millions to charity. But surely, we all would if we were worth $200 million. If he makes it to president then the press and media will have done a terrible job in explaining his real credentials. Its really important that the way these types of business work, is made clear to all the people. Because what we really need is companies like Bain Capital to stop running the world, which is what they are doing currently.
He has claimed that he has created jobs during his business career.
Mitt Romney has spent his business career mostly in the private equity and buyout business. This has involved using mountains of invested money to buyout companies and re-sell them later at a profit.
What is for sure is that he has created unemployment as many of the companies he has loaded with debt have gone bust and employees have lost their jobs.
He has also been responsible for thousands of redundancies which have been made in companies after acquistion by Bain Capital. This is standard procedure for these companies.
Bain Capital have been successful in making money for investors, but this is not as difficult as you may think it would be for a number of reasons.
1......If you are aware of a growing amount of money going into this type of business, it creates a supply and demand issue for the mountain of cash. Growing funds in the lead up to the financial crisis meant it was relatively easy to buy a company and sell it within a few years at a nice profit. Much the same way as there was a lot investment in property which had the same result on house prices. (The mountain of cash is money that has accumulated in all kinds of investments including pension funds and deposit accounts- Basically growing investments in general).
2......If you were struggling to find a buyer from another buyout company then there is always the option of a floatation on the stock markets. Stock markets don't tend to think things through so much as the stock brokers and hedge funds work much more short term. Many companies end up being floated on the stock exchanges after Mitt Romney's team have loaded them up with debt. And many collapse shortly afterwards.
(It is difficult to understand this should go on without being outlawed, but part of the reason it continues is that the press and media seem to turn a blind eye to what is really going on. Much of this is due to the support given by the press and media to the stock markets. The truth is the stock markets are used as a dumping ground for companies that Private Equity Firms, Hedge Funds and other types of buyout company want to off load because they want to use the capital to invest elsewhere !)
3........ Cutting costs of an acquired company are easy when you know you are not going to keep it for long. One way is making redundancies. Another way of accumulating cash and cutting costs is selling parts of the company off.
So you see there is nothing difficult about the way Mitt Romney has earned his money. I don't see how being president of your country and a back ground of private equity go together. If Romney becomes president it will be because he has successfully misled the United States People.
Mitt Romney and the company he formed, 'Bain Capital' are responsible for;-
...................Thousands of redundancies
....................A number of complete business closures
....................Companies getting into massive unjustified debt
....................A lower standard of product or service by many of these businesses
...................Increased prices due to added costs by Bain Capital and increased debts
Although Mitt Romney left Bain Capital some years ago he still receives a pension of many millions of dollars based on the profits of the buyout and private equity business.
Much of the money for his election campaign will come from damage that he and his company has created which probably dates back to what will probably be seen as the beginnings of the 2007 financial crisis. Yes, I believe it goes back to the eighties and the private equity and buyout business was very much at the very beginning.
Should he become President ?
The answer is a definite no.
But of course he does give millions to charity. But surely, we all would if we were worth $200 million. If he makes it to president then the press and media will have done a terrible job in explaining his real credentials. Its really important that the way these types of business work, is made clear to all the people. Because what we really need is companies like Bain Capital to stop running the world, which is what they are doing currently.
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