Socialize The Losses – Bain Capital Edition

From Craig Crawford, more evidence that Mitt Romney has some serious ‘splainin’ to do. The problem is that every transaction is its own story and there were many transactions.  The drip, drip, drip of these things is more than his staff can possibly prepare for and more than he can ever finish explaining.  No one will want to hear the full explanation, let alone believe it.

I disagree with Crawford’s conclusion.  This is not socialism.  This is deal-making in America. This IS capitalism, or at least what capitalism has become. The obvious problem Romney’s going to have is that the American people don’t like this kind of thing. This is the ‘rigged system’ in which society takes the loss while the rich guys rake in the dough that the Occupy Wall Street movement has tapped. This is TARP followed by giant, seemingly unjustified investment banker bonuses. This is the Goldman Sachs getting what looks like a sweetheart deal on its AIG exposure courtesy of their alumni network at Treasury.

Here’s Crawford’s post in full from the Huffington Post.

Romney now says big government is anti-American but he wasn’t shy about feeding on the federal trough when he got the chance.

As a self-described “capitalist” he successfully lobbied the Federal Deposit Insurance Corp. to forgive his company’s debts.

Romney’s rescue of a business consulting firm was achieved in part by convincing the Federal Deposit Insurance Corp. to forgive roughly $10 million of the company’s debt. — The Boston Globe (10/25/1994).

When a steel mill Romney had bought failed, thanks to massive debt he had saddled it with, his firm — Bain Capital — got the feds to bail out the mill’s pension plan, while he walked away with huge profits.

A federal government insurance agency had to pony up $44 million to bail out the company’s underfunded pension plan. Nevertheless, Bain profited on the deal, receiving $12 million on its $8 million initial investment and at least $4.5 million in consulting fees. — Reuters

Romney now equates any attacks on his business dealings as an assault on free enterprise. But his version of capitalism was all about relying on government to cover his losses. Sounds more like socialism to me.

Craig blogs daily on craigcrawford.com.

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