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Gingrich’s Own Close Tie to Buyout Industry
NY Times Blog ^ | January 9, 2012 | By PETER LATTMAN and JIM RUTENBERG

Posted on 01/09/2012 9:34:11 PM PST by americanophile

Newt Gingrich has ramped up his attacks on Mitt Romney as a heartless leveraged buyout executive for his years at Bain Capital, asking reporters in Manchester on Monday, “Is capitalism really about the ability of a handful of rich people to manipulate the lives of thousands of other people and walk off with the money? Or is that, somehow, a little bit of a flawed system?”

But Mr. Gingrich was himself on an advisory board for a major investment firm that had a similar business model, Forstmann Little, a pioneering private equity firm co-founded in 1978 by Theodore J. Forstmann that was, along with Mr. Romney’s Bain Capital and Henry R. Kravis’s Kohlberg Kravis & Roberts, among the leading private equity firms during the 1980s and 1990s.

Forstmann Little earned billions of dollars in profits from its investments in companies including General Instrument and Gulfstream Aerospace. But the firm shut down most of its operations a decade ago after suffering losses from ill-timed bets on high-flying telecommunications companies at the height of that industry’s bubble.

(Excerpt) Read more at thecaucus.blogs.nytimes.com ...


TOPICS: Politics/Elections
KEYWORDS: angrychubslosevotes; anotherbook; anotherelection; bain; banglist; bizpartner3wives; capitalism; contractwiththeearth; crybaby; gingrich; globalwarmingbooks; goa; googlenewtlautenberg; healthcarelobbyist; histerian; honest; jpfo; lobbyist4bux; newt1996lautenberg; newt4gunfreezones; newt4reasnblguncntrl; newtlautenberg; newtvotesantigun1996; nra; progressivesaysnewt; reasonableguncontrol; serialcheater; trustworthy; vfw; whino

1 posted on 01/09/2012 9:34:15 PM PST by americanophile
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To: americanophile

Here is Perry’s opportunity to shine.
There is nothing wrong with capitalism, its great!
Let everyone get a taste, for the sake of the nation!
Let’s get America to work again!


2 posted on 01/09/2012 9:38:24 PM PST by mylife (The Roar Of The Masses Could Be Farts)
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To: americanophile

I’m sure Newt was just acting as their historian.


3 posted on 01/09/2012 9:41:50 PM PST by Will88
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To: americanophile

So now if you are associated with a successful capitalist company or individual you are not fit to be the president of the USA? Obama just won reelection.


4 posted on 01/09/2012 9:42:51 PM PST by jpsb
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To: americanophile

Not the same. And so what. Is this all you got?


5 posted on 01/09/2012 9:42:58 PM PST by Logical me
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To: americanophile
Forstmann Little earned billions of dollars in profits from its investments in companies including General Instrument and Gulfstream Aerospace. But the firm shut down most of its operations a decade ago after suffering losses from ill-timed bets on high-flying telecommunications companies at the height of that industry’s bubble.

Boy have I seen that stuff before.. Come in, make a bunch of claims based on meetings at the top, make a bunch of deals, bail with a golden parachute and screw the rest.

6 posted on 01/09/2012 9:44:23 PM PST by mylife (The Roar Of The Masses Could Be Farts)
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To: mylife

Perry has already joined in on the capitalism bashing.


7 posted on 01/09/2012 9:44:23 PM PST by jpsb
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To: jpsb

Perry is FOR capitalism, but corporate raiders and who rape Good company’s are hardly good examples of capitalism.

Perry is all about SUSTAINED growth.


8 posted on 01/09/2012 9:47:15 PM PST by mylife (The Roar Of The Masses Could Be Farts)
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To: mylife
"Here is Perry’s opportunity to shine."

Perry has as much chance of winning the nomination as LSU has of winning the BCS Championship.

The game is over, LSU lost and so has Perry.

His best chance is to play nice and hope for a position in the winners cabinet.

Sucks, but true.

Photobucket

9 posted on 01/09/2012 9:47:59 PM PST by VicVega (GEAUX SAINTS-LSU bleaux it in the BCS Championship game.)
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Instead of capitalism, we should be educating folks on the free market system.

Better yet, “Natural markets.”


10 posted on 01/09/2012 9:48:34 PM PST by D-fendr (Deus non alligatur sacramentis sed nos alligamur.)
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To: jpsb

Ask Newt, he’s the newly minted anti-capitalist rhetorician.


11 posted on 01/09/2012 9:50:26 PM PST by americanophile ("this absurd theology of an immoral Bedouin, is a rotting corpse which poisons our lives" - Ataturk)
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To: Will88

LMAO!


12 posted on 01/09/2012 9:50:53 PM PST by americanophile ("this absurd theology of an immoral Bedouin, is a rotting corpse which poisons our lives" - Ataturk)
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To: Will88

Be nice. LOL


13 posted on 01/09/2012 9:52:52 PM PST by VicVega (GEAUX SAINTS-LSU bleaux it in the BCS Championship game.)
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To: VicVega

Well, he seems to be polling OK here on FR.
I expect Santorum to fall like a rock in New Hampster.
Perry, will too, but he is not campaigning in NH, He is in SC.


14 posted on 01/09/2012 9:52:54 PM PST by mylife (The Roar Of The Masses Could Be Farts)
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To: jpsb

This a horrible can of worms they’ve opened up. As a party, we will rue the day when we allowed this kind of rhetoric to find pass the lips of our candidates. This is Obama’s tune, and it only helps him. I am deeply dismayed by this rhetoric.


15 posted on 01/09/2012 9:53:10 PM PST by americanophile ("this absurd theology of an immoral Bedouin, is a rotting corpse which poisons our lives" - Ataturk)
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To: americanophile

Cat’s out of the bag on Willard Gekko and it aint going back in.


16 posted on 01/09/2012 9:56:04 PM PST by NKP_Vet (creep.)
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To: mylife

Perry won’t finish in the top three in SC. It will be his Alamo.


17 posted on 01/09/2012 9:56:14 PM PST by kabar
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To: americanophile

Me too. They really opened Pandora’s box with the anti-capitalist, class warfare rhetoric. Old Chinese curse comes to mind: “Be careful what you wish for, you might get it.”


18 posted on 01/09/2012 9:57:27 PM PST by truthkeeper (Vote Against Barack Obama in 2012! (That's my story and I'm sticking to it.))
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To: kabar

If he gets 4th, I would not rule him out.


19 posted on 01/09/2012 9:57:56 PM PST by mylife (The Roar Of The Masses Could Be Farts)
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To: mylife
Have you found out if Perry qualifies for the SC Debate?

Isn't there some sort of formula that could get him into the debate?

What about VA?

He has/had so much potential

A key role in a new administration can give him time to bounce back nationally and give it a shot in 2016.

I'm hoping my Tigers can bounce back from their loss and win it all next year.

20 posted on 01/09/2012 9:58:45 PM PST by VicVega (GEAUX SAINTS-LSU bleaux it in the BCS Championship game.)
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To: NKP_Vet

You kids. It’s not about Romney, it’s about the unimaginable foolishness of engaging in this kind of anti-capitalist rhetoric. Aside from the fact that it will come back to haunt us politically, it’s a total ideological surrender, and it’s dangerous.


21 posted on 01/09/2012 9:58:53 PM PST by americanophile ("this absurd theology of an immoral Bedouin, is a rotting corpse which poisons our lives" - Ataturk)
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To: truthkeeper

We have the Chinee curse now.

It’s called China has all the jobs.


22 posted on 01/09/2012 9:59:14 PM PST by mylife (The Roar Of The Masses Could Be Farts)
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To: americanophile

And here we see the problem with Newt. A poorly thought-out attack on the wrong grounds (attacking capitalism) with blow-back on him.

Newt has a long way to go to make the case.


23 posted on 01/09/2012 9:59:42 PM PST by bigbob
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To: VicVega

Perry will be in the SC debates and on the ballot.
He may get on the VA ballot as well, we will know in a few days.


24 posted on 01/09/2012 10:01:20 PM PST by mylife (The Roar Of The Masses Could Be Farts)
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To: VicVega

Perry will be in the SC debates and on the ballot.
He may get on the VA ballot as well, we will know in a few days.
As of now a judge has ruled that the ballots cant be printed till this is sorted out.


25 posted on 01/09/2012 10:02:01 PM PST by mylife (The Roar Of The Masses Could Be Farts)
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To: Will88

I am sure Newt is sorry for this affiliation - he made a terrible mistake and won’t do it again. If God can forgive him, why can’t we? After all, Newt is so much smarter than the rest of us sheeple.


26 posted on 01/09/2012 10:03:12 PM PST by not2worry
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To: not2worry

Heck, if I were to really believe in this rhetoric, why wouldn’t I just become a Democrat? After all, they do it so much better.


27 posted on 01/09/2012 10:08:27 PM PST by truthkeeper (Vote Against Barack Obama in 2012! (That's my story and I'm sticking to it.))
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To: americanophile

It’s not anti capitalist.

It’s about jobs!
No one can defend people becoming billionaires cutting up company’s while unemployment is at 15%

Obama has done a good job of looting companies/diverting moneys and killing jobs. We don’t like it when he does it either.

This election is about getting America to work again.


28 posted on 01/09/2012 10:08:27 PM PST by mylife (The Roar Of The Masses Could Be Farts)
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To: mylife
Perry had the signatures, others did not.

It was mentioned, and you know internet rumors, over 30% of Romney's required signatures were invalid.

Who knows if it's actually true.

29 posted on 01/09/2012 10:08:36 PM PST by VicVega (GEAUX SAINTS-LSU bleaux it in the BCS Championship game.)
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To: americanophile

huntsman, perry and newt are all on the anti capitalist train, paul, santorum and of course romney are not. I am very curious to see how this line of attack is going to play out. If it works for newt in a gop primary it will work even better for obama in the general. looks like we are “all in” on the fate of the republic.


30 posted on 01/09/2012 10:10:19 PM PST by jpsb
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To: VicVega
over 30% of Romney's required signatures were invalid

NO one will ever know. He and Pauls signatures weren't checked.

31 posted on 01/09/2012 10:12:16 PM PST by mylife (The Roar Of The Masses Could Be Farts)
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To: mylife
This election is about getting America to work again.

I don't see it quite that way. It's about shrinking the massive size of government as well as cutting back the ridiculous spending. This will involve getting rid of as many Rats as possible and winning back Congress and, hopefully, the presidency.

If the above happens, the opportunity for jobs should then flourish.

32 posted on 01/09/2012 10:13:18 PM PST by truthkeeper (Vote Against Barack Obama in 2012! (That's my story and I'm sticking to it.))
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To: jpsb

Perry has been about growing business and jobs from day one.
Less regulation.


33 posted on 01/09/2012 10:14:13 PM PST by mylife (The Roar Of The Masses Could Be Farts)
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To: truthkeeper

Yes , that is a valid point and you are correct, we have to shrink the public sector and grow the private sector, reign in Gov spending.

I got off on a tangent because everyone is grousing about the private sector.
The private sector is the engine to prosperity, but you are correct, the public sector/fed is the brake.


34 posted on 01/09/2012 10:18:46 PM PST by mylife (The Roar Of The Masses Could Be Farts)
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To: mylife

Yes, we are on the same page, FRiend.


35 posted on 01/09/2012 10:21:55 PM PST by truthkeeper (Vote Against Barack Obama in 2012! (That's my story and I'm sticking to it.))
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To: americanophile

newt is a liar and a phony? not so!!


36 posted on 01/09/2012 10:59:34 PM PST by skaterboy (Hate=Love....Love=Hate)
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To: mylife

You’re exactly right. Why is it so hard for some to grasp that if your record is that you killed jobs—whether it’s bad economic policy or from shutting down companies to make a profit—you may have a credibility problem if you say that you’re a job creator?


37 posted on 01/09/2012 11:05:03 PM PST by Quicksilver (nominate Rick Perry - defeat Obama - overhaul Washington!)
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To: Quicksilver

I don’t know.

I thought that this election was about jobs and American growth.

Obama sucks, Romney sucks.


38 posted on 01/09/2012 11:08:04 PM PST by mylife (The Roar Of The Masses Could Be Farts)
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To: americanophile
Obama groupie.

newsbusters.org/blogs/clay-waters/2012/01/05/nyt-goes-label-crazy-conservatives-2012-2008-dems-were-only-populist

39 posted on 01/10/2012 12:12:01 AM PST by expat1000
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To: mylife

Yes!


40 posted on 01/10/2012 12:32:11 AM PST by BunnySlippers (I LOVE BULL MARKETS . . .)
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To: mylife

Corporate Raiders wouldn’t have spent 50 years raiding companies if they weren’t trying to provide “benefits” that we’re encouraged by gummint and in so doing amassed huge piles of resources that were vulnerable. That wasn’t capitalism it has been “Socialism Lite”. Those resources should have either been paid out to employees who could provide their own benefits or plowed into lower prices or R&D. THAT would have been capitalism and there never would have been corporate raiders.


41 posted on 01/10/2012 2:17:29 AM PST by wastoute (Government cannot redistribute wealth. Government can only redistribute poverty.)
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To: truthkeeper

My prediction: there will be just enough of a Republican win that the Brown Shirt Media will be able to say the pub bids run things with the Congress and the Presidency but not enough of a win to actually put the brakes on this train wreck. Then the BSM can blame the pubbies for another 40 years.


42 posted on 01/10/2012 2:32:12 AM PST by wastoute (Government cannot redistribute wealth. Government can only redistribute poverty.)
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To: americanophile
Ted Forstmann is known as one of the few honest big dealermakers on Wall St.

He came out in 1980 and said that junk bonds would be the downfall of Wall St (it took 7 years for that to happen).

He also coined the term "barberians at the gate" in describing Henry Kravis and KKR as what in it was like when corporate raiders (like Bain) come knocking.

43 posted on 01/10/2012 2:33:13 AM PST by RoosterRedux
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Even if you're having a bad day.
Cleverness Here
You can still donate to FR.
Click here!

44 posted on 01/10/2012 3:43:52 AM PST by Darksheare (You will never defeat Bok Choy!)
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To: RoosterRedux

Talking points.


45 posted on 01/10/2012 10:32:36 AM PST by americanophile ("this absurd theology of an immoral Bedouin, is a rotting corpse which poisons our lives" - Ataturk)
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To: americanophile

So why should American taxpayers have to be forced to pay for Willard’s business incompetence and greed?

Workers were denied the severance pay and health insurance they’d been promised, and their pension benefits were cut..

What’s more, a federal government insurance agency had to pony up $44 million to bail out the company’s underfunded pension plan. Nevertheless, Bain profited on the deal, receiving $12 million on its $8 million initial investment and at least $4.5 million in consulting fees.

http://legalinsurrection.com/2012/01/bain-drip-drip-drip/


46 posted on 01/10/2012 10:36:38 AM PST by CainConservative (Newt/Santorum 2012 with Cain, Huck, Bolton, Parker, Watts, Duncan, & Bachmann in Newt's Cabinet)
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To: americanophile
I was on Wall St at the time. Though I did not know Forstmann personally (he died a few weeks ago), I know many of the players in the dealmaking and LBO business.

Forstmann was the only dealmaker of note opposed to the use of junk bonds (he called junk bonds "wampum"). He took a good deal of ridicule about his position.

When Drexel Burnham Lambert, Michael Milkin, and others bit the dust...he was proved right.

For what its worth, I am not opposed to the use of junk bonds for LBO's, but Romney will have a hard time getting elected with this background.

47 posted on 01/10/2012 10:46:34 AM PST by RoosterRedux
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To: RoosterRedux
Every Republican will have a hard time once we've adopted the language and viewpoint of the left and acceded to putting capitalism on trial, which is exactly what this rehtoric does. This pushes the entire debate way to the left and if anyone thinks otherwise, they are fooling themselves. There are "barbarians at the gate," and they're called socialists. They couldn't ask for more from the GOP This is beyond foolish.
48 posted on 01/10/2012 11:15:33 AM PST by americanophile ("this absurd theology of an immoral Bedouin, is a rotting corpse which poisons our lives" - Ataturk)
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To: CainConservative
I don't think you can point to any facts that suggest that American taxpayers were asked to pay for business incompetence or greed on the part of Bain. Of course Bain and Romney are an irrelevancy - we're talking about an attack on capitalism utilizing the language of the left. This line of argument that you and Newt are engaged in only ends in one way - socialism.

"I do think at a certain point you've made enough money”
- Barack Obama

49 posted on 01/10/2012 11:21:27 AM PST by americanophile ("this absurd theology of an immoral Bedouin, is a rotting corpse which poisons our lives" - Ataturk)
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To: americanophile

Your unbridled defense of Romney has blinded you to what is happening. Americans have a right to know the truth about Romney whether you like it or not.


50 posted on 01/10/2012 11:43:43 AM PST by RoosterRedux
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