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Romney - The Businessman?

Posted by MacZad
Oct 15 2012

Mitt Romney touts his experience as a businessman and his rescue of the 2002 winter Olympic Games in Salt Lake. There's no question that Romney is a smart cookie. He has worked the system to the maximum to enrich himself and/or enhance his reputation, but in contrast to men like Henry Ford, HP's Bill Hewlett and Dave Packard, Intel's Andy Grove, Microsoft's Bill Gates or Apple's Steve Jobs all who built companies that provided employment to thousands and contributed to America's success, Mitt's business success was heavily dependent on financial manipulation which ended up driving companies into bankruptcy and destroying the jobs of thousands.

Let's take the Olympic Games rescue first via this quote from Rolling Stone:

--- Romney has[n't] done just fine at milking the government when it suits his purposes, the most obvious instance being the incredible $1.5 billion in aid he siphoned out of the U.S. Treasury as head of the 2002 Winter Olympics in Salt Lake – a sum greater than all federal spending for the previous seven U.S. Olympic games combined. Romney, the supposed fiscal conservative, blew through an average of $625,000 in taxpayer money per athlete – an astounding increase of 5,582 percent over the $11,000 average at the 1984 games in Los Angeles.

Remember the KB Toys an 86 year-old company with over 400 stores when it went into bankruptcy in 2008? Why the bankruptcy?

--- in 2000, right before Romney gave up his ownership stake in Bain Capital, the firm targeted KB Toys. --- Bain put up a mere $18 million to acquire KB Toys and got big banks to finance the remaining $302 million it needed. Less than a year and a half after the purchase, Bain decided to give itself a gift known as a "dividend recapitalization." The firm induced KB Toys to redeem $121 million in stock and take out more than $66 million in bank loans – $83 million of which went directly into the pockets of Bain's owners and investors, including Romney. "The dividend recap is like borrowing someone else's credit card to take out a cash advance, and then leaving them to pay it off," says Heather Slavkin Corzo, who monitors private equity takeovers as the senior legal policy adviser for the AFL-CIO. --- Bain ended up earning a return of at least 370 percent on the deal, while KB Toys fell into bankruptcy, saddled with millions in debt. KB's former parent company, Big Lots, alleged in bankruptcy court that Bain's "unjustified" return on the dividend recap was actually "900 percent in a mere 16 months."

Read the full of story of Mitt's business dealings in this Rolling Stone article, and another Rolling Stone article about how Romney got the government (us taxpayers) to foot the bill for the 1990 rescue of the then ailing Bain & Co., the original parent firm of Bain Capital.

You know, despite his shortcomings, I believe that voting for a former "community organizer" makes more sense for the future of our country than voting for a guy with Mitt's background and mindset.


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