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(NYPost)   What they say: Bain's a horrible evil corporate scumweasel blight on all that is noble and good, who will be first against the wall when the revolution comes. What they do: Sheeeeit, would you look at those returns. We're parking our money at Bain   ( divider line
    More: Obvious, Sheeeeit, Ford Foundation, pension system, evils, walls  
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1939 clicks; posted to Politics » on 02 Sep 2012 at 9:36 AM (5 years ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»

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2012-09-03 12:06:00 PM  

knobmaker: Here's how Bain did it: They told the company's management that if they did not resist the takeover, there would be large executive compensation for them. They put in a small amount of their own money, borrowed many times as much, bought a controlling interest with the money, saddled the company with a huge amount of debt, stripped assets

You're so full of it it is astounding.

There's no reason to "strip a company of its assets" if it is possible to make it profitable. There's more money to be made in using assets to make stuff than simply selling them for pennies on the dollar.

Yankees Team Gynecologist: Of course he doesn't.

Guys like o5iiawah can vote, people. Just let that sink in.

And so can people like you who get the bulk of their political and financial knowledge from the editorial pages of Mother Jones. Was Dunkin Donuts liquidated? Was Staples? Was Sports authority? The attacks on Bain are simply butthurt from people who tried to go to their company's trough one too many times and found that Bain had removed it.

You figure that banks would stop lending to Bain the second time they decided to take out massive loans against the assets of a company, sell the assets and stiff the bank with the loan from a company that exists only on paper. Banks are more likely to lend to Bain and the companies they take over in the interest of making the company profitable.

Maybe you're just stupid and dont realize how wrong you are or you're so outraged over the fact that there's a market in this country for venture capital that you dont even know what they do. I'm not sure which is sadder.
2012-09-03 01:05:28 PM  

o5iiawah: There's no reason to "strip a company of its assets" if it is possible to make it profitable. There's more money to be made in using assets to make stuff than simply selling them for pennies on the dollar.

Of course there is. A company like Bain is in it for the fast buck, not the slow, laborious one. There are 2 ways to recoup your investment and make a tidy profit within 12 months or so:

- Max out the company's credit card and issue colossal dividends (that was GST Steel - you can look it up, you know.)
- Sell everything that isn't nailed down and issue colossal dividends.

The third one take a little longer, and that that's the time-honored "cut everything to the bone, then sell the gutted company while it still has a full order book and before the hollow shell collapses".

And if, against all odds, the host organism survives the first bloodletting? Well, so much the better. Every good parasite knows it doesn't do to kill all the host organisms.

If GST Steel had muddled through with its extra debt burden, well, that would have been preferable, but it clearly wasn't a matter of much concern to Bain. After all, they grabbed $30 million out of the tiller the first year - money, to recap, that GST steel had gotten by issuing bonds.

Dunkin' Donuts is interesting - Bain realized that the buying public can't tell junk food from garbage and so took over a chain known for making good donuts, used their brand to market mass-produced donuts and in the process - well, obviously - eradicated a bunch of decent jobs for McService positions.

They're not there to keep the big machine of capitalism running. They're there to steal the grease out of its bearings.
2012-09-03 01:48:08 PM  

o5iiawah: There's no reason

o5iiawah: You figure

This is your brain trying to "reason," and your brain trying to "figure."

These conclusions mean nothing compared to what actually happened.
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