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Date Posted: 22:52:56 02/09/12 Thu
Author: BFIH
Subject: Fact Check on Romney's record at BCM...
In reply to: CHB 's message, "& Jon Stewart's spotlight on Rongney's "Turnaround strategy"" on 04:07:28 02/08/12 Wed

If you want to argue that Romney exaggerated how many jobs he created I won't argue, but the criticisms of his record at Bain Capital Management are ridiculous. 78% of companies BCM invested in stayed in business and the lion's share of the companies purchased were swirling around the toilet bowl when they were purchased. Several of the bankruptcies that did happen only happened AFTER Bain sold the companies to other buyers and startups are notoriously hard to keep in business - most new businesses fail.

If Romney buys a company on the verge of bankruptcy and lays some of the people people off, but manages to save the company did he cost jobs or did he save jobs? I see the glass as half full in that situation, but it beats hell out of an empty glass and it's an honest endeavor as far as I'm concerned.

Stewart is a damn funny guy, but he doesn't know jack about managing a business. Sometimes you HAVE to trim the fat to try to survive and sometimes even that won't work because of the fundamental forces that are at work in the economy -- some of the investments Romney has been ripped on were in steel for example - and the fact is that the Japanese for decades and more recently the Chinese have dumped steel into American markets for less than it costs to manufacture in order to destroy America's steel industry which is fundamental to the manufacture of the lion's share of products we make or buy. Once that is accomplished these competitors can charge whatever they want and recoup their losses -- in the meantime it's actually their governments who eat the loss. How can any private company compete with the resources of an entire nation the size of China? The answer is they can't.

Read what people who actually make their living as business experts say about Romney's record at Bain instead of listening to some guy who makes his living as a tv clown and form your own opinion. Excerpt from FactCheck.org below...

"...A Wall Street Journal analysis of 77 businesses Bain invested in while Romney led the firm found that 22 percent either filed for bankruptcy reorganization or closed their doors by the end of the eighth year after Bain first invested (although in many cases, that was after Bain had parted with the companies).
Romney acknowledges that not every Bain deal was a hit, that some investments went bad and ended in bankruptcy, while others led to layoffs.
"Sometimes the medicine is a little bitter but it is necessary to save the life of the patient," Romney told the New York Times in 2007. "My job was to try and make the enterprise successful, and in my view the best security a family can have is that the business they work for is strong."
Bain was "never interested in driving companies out of business," said Howard Anderson, a professor at MIT's Sloan School of Management, "and certainly to portray that as their modus operandi is unfair and inaccurate."
"The goal here was to create wealth," Anderson said. "Jobs were the byproduct, not the product."
Bain has lots of success stories, like Staples and Sports Authority, Anderson said. "But sometimes, it doesn't work out as you plan and they go out of business," he said. "On day one, they all look good, like the first day of baseball. … All in all, Bain is a remarkable company."
"Their overall performance was terrific

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