JoeB131
Diamond Member
This is where the "hate Romney" meme goes off the rails. When a company is in dire straits, its options are limited to a few unpleasant choices. It can try to increase revenue, but that will likely fail, because if they could do that, they would not be in dire straits. That leaves cutting costs. Since one of the biggest costs a company has is labor, that means jobs. That's usually where liberals start going bat crap crazy, demanding that no one ever lose a job because the company is struggling. Of course, if a company does not cut costs, it goes out of business and everyone loses their job. It would seem that liberals would prefer all employees losing their jobs to some employees losing their jobs but the company survive and continue employing others. Weird people, liberals.
Except that's not what happened with GS Steel. With GS Steel, Bain Capital borrowed huge amounts of money on the basis of GS Assets to buy up other steel companies. At that point, the interest payments were so high that company couldn't possibly pay them off, no matter how much they cut payroll.
Meanwhile, Bain paid itself 50 million in consulting and management fees on a 25 million dollar investment. The banks who bankrolled them lost money when the company lost money. The Federal Government had to make good on 44 MILLION on payments to GS's pension fund because after bankruptcy, Bain stopped paying the obligations they inherited.
And guys like Joe Soptic, who had worked for this company for decades, lost their health insurance and pensions.
Bain wasn't venture capital, it was vulture capital. People got a good whiff of what Romney was - a blood-sucking Mormon piece of shit - and voted overwealmingly for Obama.