Saturday, May 19, 2012
The Obama campaign vid about Romney, Bain Capital, and GST Steel is posted below this. There are a lot of problems with it, mostly that it’s untrue. If one didn’t know better, the purpose of private equity firms is to raid healthy companies, throw good hard working people out of work, and pay themselves.
The description here is GST Steel was a healthy thriving company, and Romney came in and destroyed it. First problem is Romney had left Bain two years before GST declared bankruptcy. The narrative is Romney and Bain came in, sucked all the money out, paid themselves and left.
GST, like all steel companies began going downhill in the early 1990’s. Then was the beginning of alternative materials to steel and higher rates of imports of steel, mostly from Asia, causing a downturn in the amount of steel being produced in the
This was when Bain came in, using the equity investment business strategy of
buying up companies heavily in debt, restructure them and cut costs, and make
them productive again. Once they’re productive again, they’re taken public or
sold to another company. US
The company was actually turned around after Bain restructured it. It became a world class producer of rods. It was going downhill before Bain got there and would have failed and declared bankruptcy much earlier like so many steel production companies did then.
It’s lame the Dems are saying, well, Romney set it all in motion; just because he had left two years earlier doesn’t mean he’s not responsible for what happened. The reason he left by the way was to save the Salt Lake City Winter Olympics. If you'll remember, it was headed for major disaster. He turned it into a profitable, popular, success. It was also lame, and it really ticked me off when during the Republican debates, both Perry and Gingrich went after Romney for being a venture capitalist and rich. Really? That’s what opened the door for this whole lying mess. Both those guys plummeted in my estimation of them.
Even though Romney wasn’t there, he’s responsible? Obama’s been there for what, 38 months? How many jobs has he cost? 8.1% unemployment. About 17% unemployment if all the citizens that have left the job market are counted, or ran out of unemployment benefits, taken lesser jobs or have just given up. OH! What am I thinking? It’s Bush’s fault, and them ‘wascally ‘wepublicans…