Did Romney actually create jobs at Bain? was the title of a report on tonight’s edition of CBS Evening News.
This is a perfect example of how the lame stream media pretends to check the facts, but leaves the obvious questions all unanswered.
They start with an interview with Rick Rickardson who runs a a private equity firm in Washington. He was amazed at Bain’s 88% per year returns when the industry average was 25%. The people in Bernie Madoff’s industry were equally amazed at his returns over 20 years, until they discovered he was running a Ponzi scheme. So what do we really learn from what Rickardson had to say? Would that the reporter had probed a little deeper. Maybe they did dig deeper and carefully edited this out of Rickardson’s remarks.
Then they reported on a steel company in which Bain invested $100 million to turn the company around, the company went bankrupt, and Bain made a $34 Million profit. What kind of a reporter would report that set of facts and not even ask himself, “How could that be?” Wouldn’t we all like to hear an explanation of that. I suspect that Bain took the profits and the lenders took the losses.
There is a fabulous comment posted on this story. The comment started with the following paragraphs:
60 minutes needs to “look further”. Look what happened to the deferred wages of the “Defined Benefit Pension plans” of the baby boomers that disappeared during the “Merger and Aquisition” schemes that Bain Capital and others used to “steal pensions”.
Merger and Aquisitions never would have happened if there was no DB Pension funds in those Companies. The ‘Creative accounting theft” of Pension plans were recently disclosed after a 10 year investigative reporter, Ellen Schultz of the Wall Street Journal, looking at hundreds of 10K’s and figured out that Companies were stealing the employees deferred wages of DB pensions.
This comment has more facts and details to go along with what I said in the previous post, When Mitt Romney Came To Town — Full, complete version.
My comment on the story was:
What a job of reporting. Rick Rickardson was amazed at Bain’s 88% per year returns when the industry average was 25%. The people in Bernie Madoff’s industry were equally amazed at his returns over 20 years, until they discovered he was running a Ponzi scheme.
The you report on the failure of GS Industries steel mills. Bain walked away with a $34 million profit after investing $100 million in the company which went bankrupt. Any decent reporter would instantly say, “How did they do that?”
The previous commenter seems to have the explanation which is the same one that came to my mind minus just a few of those details.
In the future, do not send in a credulous reporter to dig up the facts on an industry he knows nothing about. I am tired of listening to stories reported by people who know less about the subject than I do.
Of course, I am a credulous listener if I expect the corporate news media to really report on the shenanigans of their brothers in crime.