Skip to comments.Giuliani To Gingrich: "What The Hell Are You Doing, Newt?"
Posted on 01/12/2012 2:35:21 PM PST by joe212
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I see nothing in the article here that is anything more that free enterprise, as presented from a Liberals point of view. Contrary to the "unicorns are real" crowd, businesses fail, investments go bad, jobs are lost, & future promises (pensions) are a poor substitute for cash now.
Underfunded pensions are a result of years of underfunding by the company itself, not the people doing the buyout. If the company had been better managed, the pension would be fully funded & the company too strong to be bought out.
The truth about buyouts is that they are really sell-offs. Current investors get nervous about the business, & look for a way out. They don't give a damn about the workers. If they did, they would hang in there & turn the business around.
Yes, it is clear that Bain did nothing illegal.
However, no-one is alleging a crime to my knowledge...they are simply pointing out how Mitt Romeny and his company treated the employees of companies that he took over.
My main problem with Bain, though, is not a legal argument, but a moral one. You have no evidence that these companies' pension funds were already underfunded. In fact, it is my hypothesis that Bain specifically TARGETED companies that had profitibility issues and fully funded pension funds, and these funds were used to pay the huge "management fees" that Bain charged, leaving the pensions funds drained, and the taxpayers on the hook for the pension payoffs.
It's not illegal, but if people find out that Bain vacuumed out the pension funds over a number of years and then bailed, leaving the taxpayers holding the bag, they may have a problem with the ethics of that practice.
I hope someone will examine this angle
Romney is a vulture, and there is nothing to celebrate about what he did: nor is there any reason to vote for someone who did what he did.