Yikes! I read this
and get sickened by Bain's ability to pay $60,000,000 in dividends on a
firm that has a cash flow of $4.7M. Even if the profit margin were 30%,
that means they only made $1.4M. So your investment dividend is 40
times higher than your profit. That would be like me bringing home after
taxes 25 cents and getting a bonus of $10. Who would pay that? You
don't have the money. Bonuses are paid
on PROFIT. In the case of Dade, Bain (Romney's firm) made $100,000,000
in management fees annually and the debt increased to over
$1,000,000,000. Who the hell takes that much money when there is no
profit--no real substance there??!!
And even worse, who loans
them money that many times over the actual cash flow and asset level.
Homeowners did not even do things this bad, as a general rule when they
refinanced homes in the 1990s to make improvements or even just take
vacations, because in many cases the value of the property (the asset)
appreciated. What Bain was doing was the same scheme, but then they left
and in many cases the taxpayers had to bail out workers and pensions
because they took the money.
an honest question--just because
they got out before bankruptcy, probably because they could see it
coming, doesn't that still make it thievery?