Saturday, January 21, 2012

Mitt Romney, Vulture Capitalism, and GS Technologies

Mitt Romney, Vulture Capitalism, and GS Technologies

"Did Bain Capital under Mitt Romney earn its money fairly, or did they play some of the predatory private equity games that Dean Baker outlined yesterday, loading up on debt, shifting assets around, and defaulting on pension benefits? Probably some of both. Reuters reports that in the case of Kansas City's Worldwide Grinding Systems steel mill, there were a lot of the financial games going on."

"Some investments don't work out. That's the free market for you. But does it seem right that Bain and its millionaire investors made a pot of money even though GS went bust and its workers lost a big chunk of their pensions? Maybe it does to Mitt Romney, but I imagine the rest of the country may feel a bit differently about it."

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