CLINTON, RENDELL, AND BAIN CAPITAL

Critics are not wrong about Bain Capital but are wrong about private equity; Bain is bad but private equity is good. Among others, such notables as Bill Clinton and Ed Rendell are wrong. Private equity can be good business but it depends on how it is done. Investigating companies then identifying those that are having problems or identifying good business ideas and providing capital for these companies to turnaround, start, or grow is what business people should do. It is good if injections of capital into a company turned it around, saved it from bankruptcy, or even proper manage it after bankruptcy means they as well as employees and stockholders retain the most possible. After all, not every venture can be a success. That is what the President and every other Democrat and Republican recognize and wants except for the greediest among us.

What is wrong is that some private equity companies identify a company that is having trouble. They can work to turn the company around and save jobs or we can sell off assets, confiscate pension fund, and fire employees, which is vulture capitalism. or they can ignore it and look for greener pastures. They have the options of trying to turn the company around but if they think they can make more money easier by their savage capitalistic approach, they will take—capitalism is good but savage capitalism is not good. The choice taken depends totally on what will maximize profits the fastest! A worker’s job, pension, home, or family, just do not count. It is a choice made behind closed doors in a boardroom; no one will ever know until it is too late, if they ever come to know. For the board members, they think it is just good business; no, it is not and Bill Clinton and Ed Rendell, both altruistic progressives, should know it! It is the worst form of greed. The board members have their MBA’s posted on their wall to prove where and how they learned to conduct business but conduct it without conscience.

What Republican Elect Mitt Romney Campaign staff is saying is a lie that they believe is not a lie. It is selfishness. What Romney campaign workers do is first to define what Democrat want then attack that definition even when it is far from reality. Clinton and Rendell should not give them credence.  Bain Capitol wanted to “save jobs” but only if it would quickly make them big money. Everyone knows this but still conservative and some progressive voters believe it is somehow good for business and good for the country when this manner of making money is as wrong as it is to rob a bank. Why do they believe greed is OK? My premise is they believe it because the foundation of conservatism is greed for power and power is money; greed is in our genes.