Extremely short and sweet diary:
David Stockman has written a book entitled "The Great Deformation: How Crony Capitalism Corrupts Free Markets and Democracy" which will be published in March 2013.
An excerpt, entitled "Mitt Romney: The Great Deformer" has been posted at:
http://www.thedailybeast.com/...
Here is a very short quote, that says it all:
The Bain Capital investments here reviewed accounted for $1.4 billion or 60 percent of the fund’s profits over 15 years, by my calculations. Four of them ended in bankruptcy; one was an inside job and fast flip; one was essentially a massive M&A brokerage fee; and the seventh and largest gain—the Italian Job—amounted to a veritable freak of financial nature.
In short, this is a record about a dangerous form of leveraged gambling that has been enabled by the failed central banking and taxing policies of the state. That it should be offered as evidence that Mitt Romney is a deeply experienced capitalist entrepreneur and job creator is surely a testament to the financial deformations of our times.
But Mittens is a great businessman. Just ask him. He'll tell you. AGAIN. And AGAIN. And AGAIN.
But he is mistaken, if you ask David Stockman.
If you ask me, I'll repeat what I have said before about how R-MONEY made money (and David Stockman agrees):
Mitt Romney invented a way to make money even when the companies he invested in went bust:
1. Buy a modestly profitable company as cheaply as you can.
2. Load company up with debt to raise cash.
3. Pay yourself a “management fee” and/or a “special dividend” using cash raised in step 2 to pull out all of the money you spent in step 1.
4. Slash expenses to cover the charges to carry the debt the company took on in step 2. Fire workers, minimize wages and benefits for the ones that remain (for example, fire them and hire them back for less), eliminate pensions, reduce or eliminate maintenance.
5. If the company does not go bankrupt, sell it for another payday. If it does go bankrupt, not to worry - - the company is on the hook for the debts taken in step 2, but not you.
If you think this is a good qualification for being President of the United States, you can vote for him.
I won’t be voting for Mitt Romney any time soon.
Read Stockman's piece. You can believe him on this one.