Skip to main content

Following last week's video focusing on how Mitt Romney's Bain Capital profited from the bankruptcy of GST Steel, the Obama campaign is today releasing a new video (above) and slideshow focused on how Romney's company made $100 million while sending Bain-owned American Pad and Paper into bankruptcy and destroying hundreds of jobs at SCM Office Supplies in Marion, Indiana.
 
Romney Economics: Ampad. Bain initial investment: $5 million. Bain profits: $100 million. Jobs lost: 1,500.
The first slide in the new case study.
 
The video and slideshow is the second installment in a series of what the campaign is calling "case studies" focusing on "Romney Economics." Although last week's video included a two-minute spot for television advertising, there doesn't seem to be a paid media component to this week's ad. Although the Obama Super PAC Priorities USA is running a strong 30-second spot, the campaign hasn't yet released a 30-second ad hitting Romney for Bain, but you have to figure that's coming soon.

While Bain walked away from the bankruptcy and plant closing with $100 million, as The Boston Globe's Glen Johnson points out, the saga helped ensure Mitt Romney's defeat in his 1994 U.S. Senate race against Ted Kennedy:

The saga of SCM Office Supplies Inc. in Marion, Ind., was used by Kennedy in television ads and campaign trail appearances by SCM workers to undercut Romney as he mounted the most serious reelection challenge of Kennedy’s career.

Bain-owned American Pad & Paper bought SCM in 1994, only to cut wages and benefits before closing the Marion plant a year later. Over 200 workers lost their job.

By 2000, Ampad itself was declaring bankruptcy, while the Romney-led Bain and its investors had reaped over $100 million in profits.

Payback's a five-letter word, eh?

Originally posted to The Jed Report on Mon May 21, 2012 at 06:41 AM PDT.

Also republished by Daily Kos.

EMAIL TO A FRIEND X
Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags

?

More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

  •  I read Cory Booker caught the vapors yesterday (24+ / 0-)

    about the Bain line of attack...he said it wouldn't work because it is a strength...

    uh...yeah...that is why it is being exposed...

    I really don't get Democrats.   They seem to have zero political instincts.

    "But once John Boehner is sworn in as Speaker, then he’s going to have responsibilities to govern. You can’t just stand on the sidelines and be a bomb thrower." - President Obama, 12-07-2010

    by justmy2 on Mon May 21, 2012 at 06:45:13 AM PDT

  •  Pull out the smelling salts! (40+ / 0-)

    Cory Booker will haz a sad, the mean Obama campaign is attacking Romney's record!  Since when did "looking forward, not back" become so popular among Democrats?

    I prefer the old-style Democrat, like Harry Truman:

    When Republicans stop lying about us, we'll stop telling the truth about them.

    When Free Speech is outlawed, only outlaws will have Free Speech.

    by Dallasdoc on Mon May 21, 2012 at 06:45:42 AM PDT

    •  Booker reminds me of Harold Ford. (18+ / 0-)

      I'm from the Elizabeth Warren and Darcy Burner Wing of the Democratic Party!

      by TomP on Mon May 21, 2012 at 06:53:32 AM PDT

      [ Parent ]

    •  Smelling salts for Cory? (5+ / 0-)
      Recommended by:
      Mannie, on the cusp, TofG, Dallasdoc, ivorybill

      Money has no smell.--Emperor Vespasian, who institited a tax on urine.

      “Woe is me, I think I am becoming a god”.--Emperor Vespasian AD 69-79

      •  money has a sickly slightly nauseating smell (0+ / 0-)

        mainly from being fingered by unwashed hands, stuck in sweaty pockets, and even being used to snort things.

        Urine, on the other hand, was very useful - clothing dye, fertilizer, a sterile fluid useful on the battlefield, and a lot more.

        What we call god is merely a living creature with superior technology & understanding. If their fragile egos demand prayer, they lose that superiority.

        by agnostic on Mon May 21, 2012 at 06:58:13 AM PDT

        [ Parent ]

    •  Right On! (4+ / 0-)

      That is the plain straight talk that gets through to just about every citizen.

      Obama should just read, recite and remind everyone of the ones of Truman, Roosevelt, Eisenhower.

      He is on the right track with the references to Reagan - follow it up -

      AND take some positive actions to really highlight the differences.

      “We had to struggle with the old enemies of peace—business and financial monopoly, speculation, reckless banking, class antagonism, sectionalism, war profiteering.

      They had begun to consider the Government of the United States as a mere appendage to their own affairs. We know now that Government by organized money is just as dangerous as Government by organized mob.

      Never before in all our history have these forces been so united against one candidate as they stand today. They are unanimous in their hate for me—and I welcome their hatred.”
      ― Franklin D. Roosevelt

      "Every gun that is made, every warship launched, every rocket fired signifies, in the final sense, a theft from those who hunger and are not fed, those who are cold and not clothed. This world in arms is not spending money alone. It is spending the sweat of its laborers, the genius of its scientists, the hopes of its children. This is not a way of life at all in any true sense. Under the cloud of threatening war, it is humanity hanging from a cross of iron".
      - Dwight D. Eisenhower

  •  Cory Booker must feel 'uncomfortable'. With (11+ / 0-)

    Democrats like this who needs Republicans?

    "Rick Perry talks a lot and he's not very bright. And that's a combination I like in Republicans." --- James Carville

    by LaurenMonica on Mon May 21, 2012 at 06:49:00 AM PDT

  •  I count seven. (4+ / 0-)

    Oh, wait, I get it.

    Never mind.

    What we call god is merely a living creature with superior technology & understanding. If their fragile egos demand prayer, they lose that superiority.

    by agnostic on Mon May 21, 2012 at 06:49:30 AM PDT

  •  Krugman calls Romney "clueless" (19+ / 0-)

    http://www.nytimes.com/...

    Sometimes it’s hard to explain why we need strong financial regulation — especially in an era saturated with pro-business, pro-market propaganda. So we should always be grateful when someone makes the case for regulation more compelling and easier to understand. And this week, that means offering a special shout-out to two men: Jamie Dimon and Mitt Romney.
           

    When someone is impatient and says, "I haven't got all day," I always wonder, How can that be? How can you not have all day? George Carlin

    by msmacgyver on Mon May 21, 2012 at 06:51:22 AM PDT

  •  Cory Booker also hearts Chris Christie, especially (11+ / 0-)

    his attacks on teachers.

  •  Very good. (9+ / 0-)

    Just heard this morning about the assine comment by Cory Booker defending Bain and attacking Obama.   Yes, Newark is full of private equity capitalists, right?  It is timne to publish turncoat Democrats.  Newark needs a Democratic mayor.

    I'm from the Elizabeth Warren and Darcy Burner Wing of the Democratic Party!

    by TomP on Mon May 21, 2012 at 06:51:38 AM PDT

  •  Romney is thin-skinned. (17+ / 0-)

    He's going to freak over this.

    Ceterum censeo Factionem Republicanam esse delendam.

    by journeyman on Mon May 21, 2012 at 06:54:18 AM PDT

    •  he can dish it out, but . . . ? (13+ / 0-)

      I agree. On top of a spoiled, rich frat boy mentality, being told that he was special and was entitled to everything he ever wanted, he has never been seriously under attack, especially when the facts are against him.

      Who in the GOP run attacked him with any power? the newt. And only briefly, with no staying power. Willard's response was to spend millions on attacking newt, effectively castrating his campaign.

      What we call god is merely a living creature with superior technology & understanding. If their fragile egos demand prayer, they lose that superiority.

      by agnostic on Mon May 21, 2012 at 07:01:13 AM PDT

      [ Parent ]

      •  I really think we need to push (10+ / 0-)

        the thin-skinned meme.

        It puts him in a bind.  He can either sit back and let the attacks happen, or he can appear to be the whiny little entitled prick that he really is.

        Ceterum censeo Factionem Republicanam esse delendam.

        by journeyman on Mon May 21, 2012 at 07:05:43 AM PDT

        [ Parent ]

      •  And obviously Mitt has (3+ / 0-)
        Recommended by:
        sfcouple, ivorybill, journeyman

        shown that Bain is his Achilles heel. So we don't let up. We keep going after it! In greater volume, more stories...because believe me they are out there.

        Mitt doesn't have a bio, let's give him one!

        This is war! I don't know what kind of double-faced namby-pamby game Booker is playing. But clearly he's an incompetent boob. He's out.

        No more Liebermans or Zell Miller's! If they don't get it they they are out! And just like I fought to get Joe Lieberman out of the party, I'll do it with any other Dems that blow this one!

        Jeeze! Enough!

        In our sleep, pain which cannot forget falls drop by drop upon the heart until, in our own despair, comes wisdom through the awful grace of God ~RFK

        by vcmvo2 on Mon May 21, 2012 at 07:39:33 AM PDT

        [ Parent ]

  •  OT -- Obama in Joplin, MO tonight (5+ / 0-)
    Recommended by:
    TofG, elmo, Vatexia, smartdemmg, drmah

    to deliver address to 2012 high school graduates at 9pm.
    C-Span will tape and air during Memorial Day weekend when they air other commencement speeches.

    "Tax cuts for the 1% create jobs." -- Republicans, HAHAHA - in China

    by MartyM on Mon May 21, 2012 at 07:01:51 AM PDT

  •  Gee, I wonder if Ted Kennedy knew anything (9+ / 0-)

    about winning elections?

    Nahhh, that entire family lacked the touch.

    I wonder what Romney's comeback will be - that he wasn't really involved, that the company was going bankrupt anyway so what does it matter if he made $100M off the corpse, or just whining?

    Most likely a combination.

    In theory, there is no difference between theory and practice; but in practice, there always is a difference. - Yogi Berra En théorie, il n'y a aucune différence entre théorie et pratique, mais en pratique, il y a toujours une différence. - Yogi Berra

    by blue aardvark on Mon May 21, 2012 at 07:11:04 AM PDT

    •  Can someone tell me how (1+ / 0-)
      Recommended by:
      ivorybill

      exec's can pull 100 million out of a company and yet bankrupcy is still allowed?  Shouldnt they have to give the 100 mil back?

      •  They weren't executives, they were owners (2+ / 0-)
        Recommended by:
        mithra, OhioNatureMom

        And when they bought in the deal was structured so that Bain made money no matter what.

        In theory, there is no difference between theory and practice; but in practice, there always is a difference. - Yogi Berra En théorie, il n'y a aucune différence entre théorie et pratique, mais en pratique, il y a toujours une différence. - Yogi Berra

        by blue aardvark on Mon May 21, 2012 at 08:37:12 AM PDT

        [ Parent ]

      •  They would argue (0+ / 0-)

        That the fault lies with the investors and banks that loaned the money, for not having done their due diligence.  It’s not technically illegal to create an unrealistic business plan that you sell to investors and banks, pay out huge bonuses when the company is flush with cash from loans, and then bust out and sell at a huge loss once the interest payments outstrip revenue.  It’s unethical as hell, it demonstrates poor business management if the goal is to keep the business afloat, but it’s not always technically illegal.

        Caveat emptor.  Had they failed to disclose information they might have committed fraud.  Instead, they counted on the banks and investors to assume that they actually wanted to restructure the company to make a profit, not just to artificially inflate cash reserves, pay themselves, and get out.  Just like the GOP pretends that they want to "fix" the federal government, rather than sell off as much as they can and reduce the role of government to national defense only.  

        Mitt is the perfect Republican nominee because both he and his party are breakout artists. They feel that this is a sort of creative destruction - strip it down, profit handsomely, move on.  The problem is, they genuinely feel this way about the national forests and other federal land, the Department of Health and Human Services, the Post Office, the education system, the prisons, weather forecasting, transportation infrastructure, whatever has value.  

        Of course we're all left holding the bag.  Caveat emptor.  They trust that the voters will no more exercise due dilligence than the banks, and they are probably right.

        “If the misery of the poor be caused not by the laws of nature, but by our institutions, great is our sin.” Charles Darwin

        by ivorybill on Mon May 21, 2012 at 11:37:25 AM PDT

        [ Parent ]

        •  Yes but, (0+ / 0-)

          one would assume the bank would want to see some sort of business plan before handing over (dear god) hundreds of millions of dollars.  If that plan doesn't include sending a boatload of money to Bain, isn't that fraud?  Of course, nobody's in jail so I guess it's a moot point, but I don't get it.

  •  How did they get Cory Booker to pimp for (6+ / 0-)

    Rmoney?  WTF?  That's a Rethug's job, Cory.  Damn!  You see, when Dems use actual facts to smear their opponents, Rethugs cry Foul!  And when Rethugs make shit up to throw at Dems, Dems are supposed to STFU or they're cry babies.  See how that works?  They don't need any help from Dems, Cory.  They've got this thing wired shut.  Or they think they do.  The Obama campaign may have some surprises for them when it comes to fighting the good fight.

    GOTV in November for the:

    Best. President. Ever.

    by Little Lulu on Mon May 21, 2012 at 07:14:07 AM PDT

    •  Gritting teeth ... (2+ / 0-)
      Recommended by:
      vcmvo2, TofG

      I suspect .........................  Christie! ;-)

    •  they are protecting the "industry" and not Rmoney (2+ / 0-)
      Recommended by:
      Farlfoto, Little Lulu

      If I was Obama I would tell the vulture-capitalist that the moment Rmoney stops talking about job-creation is the moment I stop mentioning the lives he has destroyed.

      /If a man does not keep pace with his companions, perhaps it is because he hears a different drummer/. Thoreau

      by hron on Mon May 21, 2012 at 07:36:52 AM PDT

      [ Parent ]

    •  Republicans attack their opponent's strengths (4+ / 0-)
      Recommended by:
      sfcouple, drmah, mithra, ivorybill

      Democrats whine and attack their own....

      I can't stand these folks sometimes...

      But Booker has been doing this type of thing for the last 4 years...watch him on Bill Maher, he has the same schtick.

      Fortunately, it seems like the President has figured out this game of be nice to them and they will like us one day won't work...time for folks like Ford and Booker to get the memo...

      "But once John Boehner is sworn in as Speaker, then he’s going to have responsibilities to govern. You can’t just stand on the sidelines and be a bomb thrower." - President Obama, 12-07-2010

      by justmy2 on Mon May 21, 2012 at 07:46:31 AM PDT

      [ Parent ]

  •  "nauseating" how the job-creators are actaully (5+ / 0-)

    the job-killers the hired guns....

    /If a man does not keep pace with his companions, perhaps it is because he hears a different drummer/. Thoreau

    by hron on Mon May 21, 2012 at 07:29:06 AM PDT

  •  Jed.....Axelrod yesterday stole your 'Head I Win (0+ / 0-)

    Tails You Lose' line...you should sue...;-)

  •  They wouldn't whine so much, if (1+ / 0-)
    Recommended by:
    tb mare

    it wasn't hurting.

    Keep slamming Bain!

    So I see only tatters of clearness through a pervading obscurity - Annie Dillard -6.88, -5.33

    by illinifan17 on Mon May 21, 2012 at 07:41:39 AM PDT

  •  Jed, Obama needs to keep this up-you too! (0+ / 0-)

    My best guess was a reflection that did not look back, an image lost in every mirror.

    by Zacapoet on Mon May 21, 2012 at 07:42:48 AM PDT

  •  I really think this line of attack is brilliant. (5+ / 0-)

    Cory Booker aside, I think these Bain ads resonate with most of us. Many of us could not take multi-millions in the face of people losing their livelihoods -- and then there's Mitt Romney, who revels in it. It's about time this was shoved down his throat.

    "It does not require many words to speak the truth." -- Chief Joseph, native American leader (1840-1904)

    by highfive on Mon May 21, 2012 at 07:46:11 AM PDT

  •  Bain wasn't the only company doing this (8+ / 0-)

    but that doesn't make it right.

    As a consultant, I've seen it many times. Hot shots, often inexperienced and young, come in with spreadsheets, run the numbers, chop the core fabric of the company away to "save money" (R&D, engineering, customer service, marketing, etc), leaving a weakened shell that can't survive tough times.

    In concert with outsourcing via free trade, it is the biggest reason for the decline of the American middle class in my opinion.

    For those who whine about raising this issue is to attempt to deny one of the most significant issues in this campaign in my opinion. Creation of a country's wealth is wholly dependent on that country adding value or creating/growing goods and services and selling more of them to other countries than they buy for themselves. It's that simple.

    The 90s and the GW Bush era was about chopping out the middle class while the guys at the top cashed in big time.
    http://www.rebeccablood.net/...
    That is not an official source but there are lots of charts like that showing the same thing.

    If Romney gets in, that will resume and the middle class will get the crap kicked out of it for another four years. This is an important election not only for that issue but it also threatens all the things Obama accomplished.

    Bain is a solid example of this behavior and what has been wrong for the last two decades. I'd hit Romney on this every day until November.

  •  in the debate, The Prez must use Ampad prop /nt (0+ / 0-)

    slutty voter for a "dangerous president"; Präsidentenelf-maßschach; Warning-Some Snark Above"Nous sommes un groupuscule" (-9.50; -7.03) "Sciant terra viam monstrare." 政治委员, 政委!

    by annieli on Mon May 21, 2012 at 07:54:23 AM PDT

  •  I worked for a Bain company 20 years ago (3+ / 0-)
    Recommended by:
    devis1, sfcouple, OhioNatureMom

    We sure didn't ADD any jobs during their brief ownership.  They just flogged the bottom line (cuts, including jobs) and issued an IPO.  This was chump change for Bain.  Their $45 million investment rolled into over $200 million on the IPO.   Shrewd business, but their entire motivation was making money, not building the company.

    I made some Mitt bumper stickers awhile back, and after all this stuff comes to light, the tag lines seem spot-on imho.

    Feel free to use and share these:


    "Slavery is the legal fiction that a person is property. Corporate personhood is the legal fiction that property is a person." David Korten, When Corporations Rule the World

    by Delta Overdue on Mon May 21, 2012 at 07:55:24 AM PDT

  •  Demorats only need to push the Romney as (4+ / 0-)
    Recommended by:
    devis1, sfcouple, OhioNatureMom, ivorybill

    vulture meme until everyone gets it, even Republicans.

    Personally, I don't think we should judge political ads based on whether they're positive or negative, rather on whether they're truthful or a pack of lies. I just wish there were a way to force Republicans to stop lying.

    Candidates' MINOR children should be out of bounds, otherwise, everything else is in as long as it's truthful.

    Eliminate tax breaks that stimulate the offshoring of jobs.

    by RJDixon74135 on Mon May 21, 2012 at 07:56:10 AM PDT

  •  When is the Obama campaign going to put millions (4+ / 0-)
    Recommended by:
    devis1, BPARTR, NanaoKnows, OhioNatureMom

    of dollars of ads on this in the Rust belt states instead of just web ads?

    These web ads are going for the media to talk about but until real money is used behind these ads then they won't do much.

    President Obama, January 9, 2012: "Change is hard, but it is possible. I've Seen it. I've Lived it."

    by Drdemocrat on Mon May 21, 2012 at 08:04:02 AM PDT

    •  AGREE! Web Ads Only Reach A Portion Of The (3+ / 0-)
      Recommended by:
      BPARTR, NanaoKnows, OhioNatureMom

      audience Obama is trying to reach. His campaign should be running the Ampad ad on TV and radio in Indiana (cause that's where the jobs were destroyed thanks to Romney). Running the ad in surrounding rust belt states is also a good idea. Or the Obama campaign could find an example of Bain vulture capitalism in each state, and run the ad that is tailored to specific states in that state - it hits close to home when the Obama ad can name the company that Romney's Bain Capital put out of business. A lot of people in the state will probably know someone (a friend, a neighbor, a fellow church member, etc.) who lost their job due to Bain. That's the way to do it!!

    •  They already are putting millions into the ads. (1+ / 0-)
      Recommended by:
      OhioNatureMom

      You may have missed it last week because of the emphasis on gay marriage (which is why the Obama campaign was upset with Joe Biden--thought he was stepping on the roll out of the Bain campaign) but they began running the Bain ads on tv in the toss up states. The first ads apparently were the full 3 minute length.

      Sarah Palin is a fictitious character created by the media to close the charisma gap between Obama and McCain in the summer of 08.

      by smartdemmg on Mon May 21, 2012 at 08:42:17 AM PDT

      [ Parent ]

      •  They haven't spent millions of dollars on ads on (0+ / 0-)

        TV at all.

        President Obama, January 9, 2012: "Change is hard, but it is possible. I've Seen it. I've Lived it."

        by Drdemocrat on Mon May 21, 2012 at 08:56:16 AM PDT

        [ Parent ]

        •  We were both wrong. (0+ / 0-)

          They haven't spent millions but they are definitely up on the air with the ads in swing states. Frankly, the fact that everyone has discussed the ads on cable in an almost non-stop fashion suggests they may be correct in not needing to spend millions on ad buys.

          President Obama's re-election campaign is trying to revive a criticism of Republican challenger Mitt Romney that has been used against the former businessman many times before: that he was a predatory capitalist whose main objective was making profits, not creating jobs.

          That's what's happening in the current Obama attack, which focuses on Romney's record running Bain Capital, a private equity firm.

          Obama's campaign is running a new TV ad, starting Monday, in the swing states of Colorado, Iowa, Ohio, Pennsylvania, and Virginia, based on interviews with former workers at GST Steel, a Kansas City steel mill that was taken over by Bain./blockquote>

          Sarah Palin is a fictitious character created by the media to close the charisma gap between Obama and McCain in the summer of 08.

          by smartdemmg on Mon May 21, 2012 at 11:18:13 AM PDT

          [ Parent ]

  •  These people (2+ / 0-)
    Recommended by:
    drmah, OhioNatureMom

    got Gang Bained. Some Americans are laying prone and screaming me next, me, me, me.
    GOP Lyin' and Cryin' 2010-2012 RIP.
    Q. Why do they hate America and want us to fail? A. They want to go live with Jesus, right now.

  •  Politics is not bean bag Booker (1+ / 0-)
    Recommended by:
    OhioNatureMom

    It you can't handle the kitchen then stay out of the kitchen.

    Talking about Romney's record is fair game.

    President Obama, January 9, 2012: "Change is hard, but it is possible. I've Seen it. I've Lived it."

    by Drdemocrat on Mon May 21, 2012 at 08:41:47 AM PDT

  •  Devastating Ad- It will stick- this is the story (2+ / 0-)
    Recommended by:
    drmah, OhioNatureMom

    of the U.S. economy and the loss of manufacturing sector

  •  no, payback is.. (1+ / 0-)
    Recommended by:
    OhioNatureMom

    ...apparently a nine figure paycheck...

    ...if you're Mitt Romney.

    It's nice work, if you can get it.

  •  I don't think the public really understands (3+ / 0-)
    Recommended by:
    drmah, OhioNatureMom, ivorybill

    "vulture capitalism."  I think people think that it means something like running a business in the most efficient mannor possible.  But it doesn't have anything to do with running an efficient business - or even running a business effectively at all.  

    Vulture capitalism is probably better described as parasitic capitalism.  Bain, and other vultures, have no intention of buying a company in order to improve the company and profit from some enhanced business process.  They buy up 50% of the company so they can appoint their people to the board of directors, then, more-or-less they can legally steal whatever they want from the company that was taken over.  They can use the company's credit to take out huge loans, take all the cash on hand, sell assets, increase pension liabilities, then use all the money this generates to pay to themselves extraordinay salaries as the company crashes and burns.  Then they dump it into bankruptcy with a "sorry about that" but the parent company comes out way ahead.

    •  You nailed the real problem (1+ / 0-)
      Recommended by:
      Short Bus
      I think people think that it means something like running a business in the most efficient mannor possible.
      People pride themselves on their ability to make tough choices and sacrifice, and to so many people, they see this sort of corporate restructuring as the same thing.  They admire it and react against those who criticize tough executives willing to make the hard call.  They see it as an effort to make a company more competitive, leaner and more sustainable.  The banks and investors who loaned Bain all the money to inflate these companies surely saw it in the same way.  It plays to a key psychological bias in favor of management and free enterprise as inherently virtuous.

      What people can't see, or won't see, is that there is a difference between managing a company to generate profits over the long term, and managing a company to generate income for those who bought the company.  Real companies and real managers do the former.  Romney made a living out of doing the latter.  This is what the election needs to be about and it's too bad Booker can't distinguish between the two forms of capitalism.

      “If the misery of the poor be caused not by the laws of nature, but by our institutions, great is our sin.” Charles Darwin

      by ivorybill on Mon May 21, 2012 at 11:46:13 AM PDT

      [ Parent ]

  •  Drive thru Marion, IN today and you can still see (3+ / 0-)
    Recommended by:
    smartdemmg, OhioNatureMom, ivorybill

    the economic devestation plant closiing have on this once industrious city.  This part of north central Indiana still suffers.  The sad political point is Marion is in Red, Red Republican country.  This ad does a great job connecting the dots.  I certainly hope Indiana citizens make the connertion.

    •  I was born in Marion (2+ / 0-)
      Recommended by:
      ivorybill, drmah

      and still have a lot of family there. My dad worked for RCA and we moved to PA in the 60s when RCA opened a new plant there. Neither of those plants are there today-outsourced to Mexico. Two years ago my husband and I took my parents back for a visit and drove around the town. I thought they were both going to cry. It looks like a ghost town. The blocks around the courthouse used to be full of shops; mostly empty now. The factories closed and abandoned. Streets and streets of decrepit houses, including the street where I was born.

      And yes, it is very Republican. Don't get it.

  •  MSNBC headline; "Is Bain Fair Game?" (2+ / 0-)
    Recommended by:
    OhioNatureMom, TofG

    How the HELL is this even a question? BEING ASKED by a news organization???

    HEAD ASPLODES

    Romney 2012 - My mission, after Apple School, is to win the rodeo. I have a penguin doing roofie in my bathroom; come on over, we'll put on Zeppelin and eat cheddar cheese!

    by Fordmandalay on Mon May 21, 2012 at 08:52:50 AM PDT

    •  Yup, ABC posits that it's going too far too: (2+ / 0-)
      Recommended by:
      OhioNatureMom, TofG

      Though they launder it through Mayor Booker instead of just saying it themselves:

      http://abcnews.go.com/...

      Even Obama campaign surrogate, Newark mayor Cory Booker, argued the line of attack may be going too far, saying Sunday that he is “very uncomfortable” with it.
      Idiots.
    •  Because of that ahole Corey Booker! (1+ / 0-)
      Recommended by:
      TofG

      What a fucktard.  I am now 100% against him running for NJ governor.  I also don't like him sucking up to Christie in that stupid commercial they made together.  Dick Codey is the right man to run against Christie.

      Corey Booker should STFU.  Stop kniving the President in the back.

      "The real wealth of a nation consists of the contributions of its people and nature." -- Rianne Eisler

      by noofsh on Mon May 21, 2012 at 09:35:58 AM PDT

      [ Parent ]

  •  This issue was Cory Booker's Kryptonite... (1+ / 0-)
    Recommended by:
    OhioNatureMom

    Wall Street's Democrat came out and slammed Obama for using Bain as no different from Jeremiah Wright strategies. Someone is looking for financiers....

    When will Democrats actually start fighting the battles they are elected to fight and stop attacking other Democrats to appear "moderate?" I'm sorry, but we have enough Booker's ineffectively negotiating away our futures with Republicans and modern day feudal lords. I now hope Booker loses his inevitable gubernatorial bid.

    Conservatives and Republicans run on science denial, antiquated worldviews, and elitist policy positions that run against the interests of 98% of the population. Despite this, they own the House, might pick up the Senate, and still garner nearly 50% of the presidential vote. How? Some of this is indeed too complicated for simple explanation (history, voter suppression, misinformation, money that gets the message out, etc.), but another part of it is Republicans very rarely attack each other. Indeed, they attack their own leaders even less frequently. When they do, it is muted, usually to push them farther to the political right (in so doing, implying for the public that the political Right is superior and the only error is not being far enough to the Right), and NEVER give any indication that Democrats are correct in their criticism.

    What Booker did was FUCKING INFURIATING. Now we have to read all month in the op-eds more narratives of false-equivalence, comparing Obama's Bain attacks to RACE-BAITING JEREMIAH WRIGHT ADS. Booker gave fuel and talking points to the Right, and for what? (Money, obviously, but....) What use are Democrats like Booker when they just trash their own fucking team (while defending vulture capitalism no less)? I don't care how many people he pulls out of burning buildings (still admittedly awesome), if Booker is going to carry water for Wall Street, I'd rather he not give interviews discussing the presidential race....

    •  100% agree with you (0+ / 0-)

      I think Booker would be a poor choice to run against Christie.  Dick Codey is the obvious choice.

      "The real wealth of a nation consists of the contributions of its people and nature." -- Rianne Eisler

      by noofsh on Mon May 21, 2012 at 11:11:29 AM PDT

      [ Parent ]

  •  Please read the comments too! (1+ / 0-)
    Recommended by:
    laserhaas

    Please debunk this:

    http://www.theblaze.com/...

    •  Typical GOP method of operation. When the truth (1+ / 0-)
      Recommended by:
      mithra

      will hurt you - attack the puny messengers.

      After all - they are the weakest, most vulnerable - Unable to Defend themselves LINK.


      PLEASE Stop Mitt (the Pitts) Romney from stealing the Presidential Election!

      by laserhaas on Mon May 21, 2012 at 10:43:32 AM PDT

      [ Parent ]

  •  Oh No (0+ / 0-)

    Corey Booker is going to have a sad.

    This aggression will not stand, man.

    by kaleidescope on Mon May 21, 2012 at 09:08:35 AM PDT

  •  Well done short documentary (1+ / 0-)
    Recommended by:
    laserhaas

    I hope that they keep this up.  This Romney character is not just someone who should be opposed.

    The fact that this guy is running for President ought to make people really angry.  

    The more I learn about him the more pissed I get.  This is a bald faced, brazen attempt by Wall Street to buy out the White House and Congress and punish us all for even thinking about regulating what these sharks want to do.

    Travel across the midwest from New York State through Pennsylvania and Ohio to Detroit.  This is mostly a vast wasteland in which the human suffering caused by just what is depicted in this video is beyond staggering.  

    That people could make large profits by causing this devastation to the American economy and this not be illegal, and then run for office in order to do more of this, is just fucking insane.  

    hope that the idiots who have no constructive and creative solutions but only look to tear down will not win the day.

    by Stuart Heady on Mon May 21, 2012 at 09:45:22 AM PDT

    •  Me too - Stuart. I smell blood in the water (0+ / 0-)

      finally. All these years waiting for the dirt and quagmire of the Bain bad faith issues are about to implode.

      And i'm happier than a pig in [c]hit about it....


      PLEASE Stop Mitt (the Pitts) Romney from stealing the Presidential Election!

      by laserhaas on Mon May 21, 2012 at 10:40:14 AM PDT

      [ Parent ]

  •  Dems got more money from Bain than Republicans (0+ / 0-)

    Glenn Greenwald's new column about the great treatment of bankers and financial wizards.

    Obama leads all in the money from the banking industry.

    So we have election posturing, but the people putting down their money know that they will get favored treatment after the election just like they did last time.

    http://www.salon.com/...

    •  Has nothing to do with who got money (0+ / 0-)

      and everything to do with clarifying exactly what sort of company Bain is.

      "The real wealth of a nation consists of the contributions of its people and nature." -- Rianne Eisler

      by noofsh on Mon May 21, 2012 at 11:13:30 AM PDT

      [ Parent ]

  •  Can I just say something about NPR in this (0+ / 0-)

    context? This morning on Morning Edition Cokie Roberts once again shilled for the GOP, by referring to the GOP's new focus on "austerity" as "focusing on the economy". Sorry, but Obama is focusing on the economy by trying to get people employed. The Ryan budget is neither "austere" (because it keeps tax cuts for the rich intact), nor does it help the economy (because spending cuts will keep the economy in a slump). Steve Inskeep of course did not question any of her assumptions.

    NPR is supposed to be avoiding "opinions on the shape of the earth differ" journalism, but it's hardly an improvement to have Roberts simply shilling for the GOP without even a hint that her position is partisan drivel.

  •  Romney Economics and the budget wars (1+ / 0-)
    Recommended by:
    mithra

    Another perfect example of how the Bain Method is so damaging to the public sector.  They started with a healthy company where regular corporate income tax was being paid by the company and all its employees.  After the Bain Method was done with them, we have $100 million extracted from the company by Bain and friends which is taxed at the low Capital Gains rate instead of the regular income rate.  Then fire all the employees and lose state and federal revenues from their income taxes.  Finally, governments all up and down the chain have to pick up the additional burden of unemployment payouts, AFDC, food stamps, Medicaid and other social programs.  So we have a lot less going into public coffers and a lot more going out.  

  •  Help! (0+ / 0-)

    How do I debunk this?

    "And Bain kept it open 9 years after it had problems."

    •  Debunk (1+ / 0-)
      Recommended by:
      mithra

      That's how vulture capitalism works. It's not that the companies are torn down immediately. They are bought with private equity, the presence of that equity is used to leverage loans that the company cannot sustain. The debt saddled company then declares bankruptcy and is sold off in parts. The company that put up the initial equity (in this case Bain) pockets all of the profit from the sales, and the taxpayers are on the hook from outstanding obligations from the company (pension guarantees, etc.). Thus, the amount of time this process takes is irrelevant to the amoral interpretation of "capitalism" that such practices reflect. Such practices are hardly "free market," but more "exploitations of legal loopholes in the current market to profit at the expense of others." A true business person would have fixed those problems over the course of nine years; however, fixing the company was never Bain's intent.

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site