If you're interested, Bloomberg did a great article a few weeks ago explain how Bain Capital worked under Romney, and how exactly it made (and he made) as much money as they did.
This used to be called "leveraged buyouts" in the 80s and 90s, but now has the more urbane and oblique name "private equity." What it essentially means is that you take a company that you can buy relatively inexpensively, saddle it with debt financing to get cash into the business, gut the expenses or part it out, pay yourself fees to run it, pay yourself high dividends from the cash generated, and then sell it as soon as you can, with relatively little concern with what happens to the company after that process.
One example, GS Industries, worked like this:
<em>In the two years following the acquisition in 1993 of GS Industries, a steel mill, for $8 million, Bain Capital increased the company’s debt to $378 million on operating income of less than a 10th of that amount. Some of this was used to pay Bain Capital a $36 million dividend in 1994. That degree of leverage was excessive in light of the cyclicality and capital-intensive nature of the steel industry.</em>
<em>By the time the company went bankrupt in 2001, it owed $554 million in debt against assets valued at $395 million. Many creditors lost money, and 750 workers lost their jobs. The U.S. Pension Benefit Guaranty Corp., which insures company retirement plans, determined in 2002 that GS had underfunded its pension by $44 million and had to step in to cover the shortfall.</em>
This is, ironically, basically the plot of the original Wall Street starring Michael Douglas; back in the 1980s, we thought this sort of thing was an outrage.
Had to watch a lot of this on a slow ESPN America stream over the Internet -- can we just all admit that NFL Network is not a real channel and put actual football games somewhere else? -- and I have to say the first-team offense did pretty much like it hadn't lost a step. Love seeing Sproles and Ingram getting carries.
Bryan, how did you feel about Joe Morgan? From what I could see he did OK in kick run-backs and caught a few balls. Anything interesting there? Where are the Saints on figuring out that fourth receiver?
I'm personally for the Second Amendment, although I don't believe in ignoring any of the clauses in it, and I think the assault weapons ban should be renewed, as should types of ammo be regulated, the size of magazines, etc. (I also think some mandatory training for gun owners wouldn't be a bad idea and I'm skeptical of the 'More Guns, Less Crime' theory, tending to believe something more akin to a 'More Guns, More Gunshots' theory.)
Here's the JPD piece you're referencing which is, believe it or not, more about what JPD should be recommending and less about whether or not you should buy a gun: http://www.jacksonfreepress.com/news/20…
Bubba -- I'm surprised at you. I would at least assume you would use more precise gun-related language. See BR down thread. Y'all are started to sound like Clinton wanting to know what the meaning of the word "is" is.
tstauffer says...
If you're interested, Bloomberg did a great article a few weeks ago explain how Bain Capital worked under Romney, and how exactly it made (and he made) as much money as they did.
http://www.bloomberg.com/news/2012-07-1…
This used to be called "leveraged buyouts" in the 80s and 90s, but now has the more urbane and oblique name "private equity." What it essentially means is that you take a company that you can buy relatively inexpensively, saddle it with debt financing to get cash into the business, gut the expenses or part it out, pay yourself fees to run it, pay yourself high dividends from the cash generated, and then sell it as soon as you can, with relatively little concern with what happens to the company after that process.
One example, GS Industries, worked like this:
<em>In the two years following the acquisition in 1993 of GS Industries, a steel mill, for $8 million, Bain Capital increased the company’s debt to $378 million on operating income of less than a 10th of that amount. Some of this was used to pay Bain Capital a $36 million dividend in 1994. That degree of leverage was excessive in light of the cyclicality and capital-intensive nature of the steel industry.</em>
<em>By the time the company went bankrupt in 2001, it owed $554 million in debt against assets valued at $395 million. Many creditors lost money, and 750 workers lost their jobs. The U.S. Pension Benefit Guaranty Corp., which insures company retirement plans, determined in 2002 that GS had underfunded its pension by $44 million and had to step in to cover the shortfall.</em>
This is, ironically, basically the plot of the original Wall Street starring Michael Douglas; back in the 1980s, we thought this sort of thing was an outrage.
There's also an interesting counterpoint here: http://www.bloomberg.com/news/2012-07-1…
Overall some great stuff on Bloomberg for fully understanding how a firm like Bain makes their dough.... and what kind of world the 1% operate in.
On Romney Accuses Obama of False Advertising, Leaves His Own Disputed Ads On the Air
Posted 9 August 2012, 12:34 p.m. Suggest removal
tstauffer says...
Hmm... well isn't Thursday's game also going to be on NFL Network?
I guess it's cool that the Saints get 5 preseason games... might be helpful considering they don't have their head coach.
On Saints defeat Cardinals 17-10 in the Hall of Fame Game
Posted 6 August 2012, 1:09 p.m. Suggest removal
tstauffer says...
Had to watch a lot of this on a slow ESPN America stream over the Internet -- can we just all admit that NFL Network is not a real channel and put actual football games somewhere else? -- and I have to say the first-team offense did pretty much like it hadn't lost a step. Love seeing Sproles and Ingram getting carries.
Bryan, how did you feel about Joe Morgan? From what I could see he did OK in kick run-backs and caught a few balls. Anything interesting there? Where are the Saints on figuring out that fourth receiver?
On Saints defeat Cardinals 17-10 in the Hall of Fame Game
Posted 6 August 2012, 10:19 a.m. Suggest removal
tstauffer says...
Sierra Nevada? Tasty!
On NASA Picks Three Companies to Build Next-Gen 'Space Taxis'
Posted 3 August 2012, 2:52 p.m. Suggest removal
tstauffer says...
Well don't you?! You're just a closet "two-legger," aincha?! Bought and sold by the bicycle lobby. It's sad, really.
On Guns Kill Families
Posted 3 August 2012, 2:36 p.m. Suggest removal
tstauffer says...
Isn't there an old adage about "assuming"? :)
I'm personally for the Second Amendment, although I don't believe in ignoring any of the clauses in it, and I think the assault weapons ban should be renewed, as should types of ammo be regulated, the size of magazines, etc. (I also think some mandatory training for gun owners wouldn't be a bad idea and I'm skeptical of the 'More Guns, Less Crime' theory, tending to believe something more akin to a 'More Guns, More Gunshots' theory.)
Here's the JPD piece you're referencing which is, believe it or not, more about what JPD should be recommending and less about whether or not you should buy a gun: http://www.jacksonfreepress.com/news/20…
On Guns Kill Families
Posted 3 August 2012, 9:54 a.m. Suggest removal
tstauffer says...
OK, good luck with that.
On Guns Kill Families
Posted 3 August 2012, 9:35 a.m. Suggest removal
tstauffer says...
This comment was removed by the site staff for violation of the usage agreement.
On Guns Kill Families
Posted 2 August 2012, 5:16 p.m.
tstauffer says...
Bubba -- I'm surprised at you. I would at least assume you would use more precise gun-related language. See BR down thread. Y'all are started to sound like Clinton wanting to know what the meaning of the word "is" is.
On Guns Kill Families
Posted 2 August 2012, 4:55 p.m. Suggest removal
tstauffer says...
Which is fascinating, but irrelevant, since the topic is semi-automatic assault weapons. :)
On Guns Kill Families
Posted 2 August 2012, 3:51 p.m. Suggest removal