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View Diary: In a real free market, you shouldn't make money by failing (100 comments)

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  •  There are two sides to Bain Capital (0+ / 0-)

    There is a "vulture capital" side that is exactly what you describe, and possibly even worse.  A lot of people have indeed been put out of work by these practices.  But we can't deny there really is another side to it, the venture capital side, which is responsible for creating jobs through underwriting the capital needed by start-ups.

    Romney's problem is that while Bain Capital started as a venture capital firm, it quickly added the vulture capital side to its business, and since doing so, made most of its money on the vulture capital side. Romney basically wants to pretend that this side of the business didn't even exist.

    There is an excellent description of these two sides of Bain Capital's business in this Boston Globe article.  I think we risk losing credibility if we try to ignore the fact that there was indeed a venture capital side to Bain Capital, and that venture capitalists are essential to our economy.  I'd far rather concentrate on telling the whole truth -- which is that while this is how Bain Capital started, and while it continues to be a part of Bain Capital's business, the vulture capital side of the business quickly became the main source of Bain's (and Romney's) profits.  That way, Romney is the one who is trying to pull the wool over people's eyes.

    Bin Laden is dead. GM and Chrysler are alive.

    by leevank on Sun May 20, 2012 at 07:29:21 AM PDT

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