WatchPerhaps a lot of you readers do not know that I am the author of a 700+ page book on white collar crime. Prosecutors and law enforcement officers who read it get a big laugh out of it and love it.
One topic that I cover in the book is what is called in the underworld: "A Bankruptcy Bustout." In a crime like this some organized crime person or group picks a company that has been in business for a long time, has a good name and lots of good credit. This company is also "past its prime" and in a slow decline. Needless to say, such a company can be purchased for a cheap price.
When such a company is located, "the bad guys" would move to take it over. Rarely would they pay cash for the company. They would use borrowed money and buy just enough of the shares to gain controlling interest in the company.
Once in charge the gangsters proceed to run up big debts using the company's good credit. They buy large amounts of inventory on credit and see it "off the books" at discounted prices and claim that they sold the inventory on credit and never got paid.
At some point the company becomes overloaded with debt and cannot pay its creditors. A petition for bankruptcy is filed. In some cases "the bad guys" get by with this and are not detected. In other cases you have an alert and smart bankruptcy trustee who "smells a rat." and calls in the FBI. When the agents see who is behind the broke company, they begin an intense examination of the books and the money flow. Eventually charges are filed and some of "the bad guys" end up in jail.
The Huffington Post took a close look at Mitt Romney and his operations with companies while he was at Bain Capital. A pattern similar to "A Bankruptcy Bustout" was observed. Romeny and the people at Bain Capital would buy a company with borrowed money, run up huge debts and bills and put the company into bankruptcy.
A concerned bankruptcy trustee looking carefully into a questionable bankruptcy would see a prominent Wall Street firm and the son of the former governor of Michigan and the former Secretary of Housing and Urban Development. With such prominent people involved, the FBI would not be called.
Here is the link to the Huffington Post article:
http://www.huffingtonpost.com/2012/05/24/bain-capital-tony-soprano_n_1542249.html#es_share_ended
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thomas.wong1986 says
Bain Capital got out of Staples 20 years ago.
I suppose if I had invested in Apple in the 90's then sold it, I could claim I was "responsible" for later success with iPods, iPhones, etc. But that would be horseshit.
Most of the rest of your companies are the same. Some Bain Capital stuff went belly-up. Example GST Steel where Bain pillaged the company, made off with millions while it went bankrupt. If they are going to claim responsibility for the successes, they have to eat the failures too. The majority of the Bain profits came from a small number of lucky rolls.
Some of what Bain Capital did, was simple leveraged buyouts. They like to talk about the venture capital side of the operation, and not talk about leveraged buyouts. Because we all know why "LBO kings" got such a bad rap a while back, because they deserved it.
http://thinkprogress.org/progress-report/romney-job-killer/
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The rich tend to eliminate jobs, because it's good for short-term profit. If the rich are creating jobs, it's mainly in China or other slave-labor nations.
Real jobs are created by raising taxes on the ultra-rich.
Unfortunately, the Democrats have been hijacked by the far-left "race, gender, and gay" crowd, which alienates much of the country. The only reason many people vote for Republicans is because of social issues, not economic ones.
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Cloud says
Capitalism has no relation to Bain Capital's business model other than vulture and crony capitalism.
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Whoa whoa wait...
It isn't already common knowledge that Wall Street and Corporate America are vast organized crime cyndicates?
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Cloud says
According to a Bloomberg study, in the last 50 years:
Private-sector payrolls increased by 42 million jobs under Democratic administrations, and 24 million under Republican ones.
You'll find some way to spin out of this or just ignore it I'm sure.
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Right, Vicente. And many of these companies were going concerns with few major issues.
They took over these companies, paid themselves huge management fees, while borrowing every penny possible and running the company down. They also shafted the other investors as well as the employees.
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Cloud says
The peasants should endure all the layoffs and wage/benefit reductions, and call for "destruction" with a smile and a thank you. While looking at pictures of people eating cake, and reading about Mitt's Trust Fund Babies, who will never want for anything.
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Cloud needs to turn off the AM radio...
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leo707's website
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Were any of the companies that Bain Capital bought not fall into bankruptcy?
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leo707's website
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wthrfrk80 says
Well... a lot that they do should be illegal, but is it a "crime" if there is no law preventing it?
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wthrfrk80 says
See you think like a guy that knows laws are bullshit. They have to have a foundation. On the one hand its "God". Otherwise its for the people by the people or its for the Debt merchants by the Debt merchants. Seeing that they own the Government for the most part. Well shit wth. The lowlife usury people are making the laws. Of course.
Now it may not appear that way to you. For me the nuke stuff well kind of like information for a moron. Toxic waste is nothing compared to cracking the rock shelves of the earth with drills. (don't hear nothin bout that) There is fracking thats been done for oil all along. Where do you think they got that from? Even thats not much compared to drilling 35 miles down through rock for oil. I see America like this people racing up and down the streets and being in asinine traffic jams. Everything about this clip reminds me of America. Take out the gambling throw in the usury which is oh so fucking obvious at this point. So the rules for them there are none. Uh yea Mr prethident you forgot to get congressional approval for invasion. Mr Usuror what do you rule in that? WTF who cares make up some bullshit. We are goin in we need that tin. Hey don't forget to bring the goon squad.
Took the "moral highground" against Biff Tannen.
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leoj707 says
No, if there's no authority higher than the government...
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leoj707 says
Recognize any of them ? This is just the short list.. and they are still around...
AMC Entertainment, Aspen Education Group, Brookstone, Burlington Coat Factory, Clear Channel Communications, Domino's Pizza, DoubleClick, Dunkin' Donuts, D&M Holdings, Guitar Center, Hospital Corporation of America (HCA), Sealy, The Sports Authority, Staples, Toys "R" Us, Warner Music Group and The Weather Channel.
Others Totes (acquire Isotoner), acquired Experian, Sealy Corporation, the manufacturer of mattresses; Alliance Laundry Systems; Domino's Pizza and Artisan Entertainment. Dade Behring (acquired by the German conglomerate Siemens AG)
$2.3 billion leveraged buyout of Burger King, later to IPO.
In June 2007, Bain agreed to acquire HD Supply, the wholesale construction supply business of Home Depot for $10.3 billion.
June 27, Bain announced the acquisition of Guitar Center, the leading musical equipment retailer in the U.S. Bain paid $1.9 billion, plus $200 million in assumed debt, representing a 26% premium to the stock's closing price prior to the announcement.
http://en.wikipedia.org/wiki/Bain_Capital
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SomeSilicon valley companies which received funding from Bain Capital... SurveyMonkey, Taleo, BloomReach, Shopping.com, LinkedIN, and several others... yes.. it provided job creation.
Shocking shit aint it!
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wthrfrk80 says
The question could be extracting ones labor in such a way, keeping them at work for them for the rest of your life? Who would rule in favor of you? Answer: No one. This is a morally bankrupt country when it comes to protecting its people from these preditors. Preditory lending hahaha oh please. Swing low sweet chariot comin fo to carry me home. hahahah. Yep well I guess you can think your smart. But in the land of usury no ones smart. The users of syncopation need not apply.
Question could be also: Could cracking the rock shelves of the earth with iron drills. Drilling down 30km in some instances ruining areas forever be a crime? Not if you cover it up well in their estimation. Not if you own the "Government" by the above means keeping them at work for them for the rest of their lives. Nuclear Flora and fluana used often.
See its the realization. You can fool people if you own the means by which they get their information. If not put bluntly that these things are going on. Then people wander off about their day.
So can we say "God" will render justice. Nope. Rather we can say maybe the earth itself will react and deal with the problem at hand. The earth is much, much, much larger than humanity. You can drive outside of any metropolitan area to realize that. I feel justice will never be delt to the doers of these things by "God" or man. There very doings however will be their undoing. Is what I think. Then the result.
A song from yesteryear.
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Vicente,
How dare you question American Capitalism on Memorial Day. How unpatriotic! Our soldiers died so that people with money could buy up businesses, lay off employees, bank a quick buck, then let the business go bankrupt. That's what America is all about.
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wthrfrk80 says
Cloud is the reason abortion should be legal.
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ohomen171 says
If you dont understand business and finance then say so!
But to call it illegal and you smell a rat, is just nonsense.
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ohomen171 says
You can also watch Oliver Stones "Wall Street" to get more facts if you really want to educate yourself about the real world.