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|10-20-2012 12:34 AM|
Sprickler, I think their name was.
First they owned a lucrative trash service.
Then then they went bankrupt.
Then they owned a VERY lucrative RV sales dealership, when RV sales were first taking off.
Then they went bankrupt - almost 7 years to the day after they went bankrupt the first time.
Then they owned a car dealership or something.
Then they went bankrupt.
Wash - rinse - repeat - FIVE times over the course of 30-ish years.
With a 7 year limit on bankruptcy I have to assume 1 or 2 of those were a different family member than old man Sprickler, but the end result was a family with a lot of personal wealth, a very large expensive home on the Chippewa River, and all the trapping that go with large personal wealth.
To me that's fraud - intentionally taking out business loans and KNOWINGLY doing it while PLANNING to go bankrupt to avoid paying back the loans.
But due to the laws of bankruptcy in this country, corporations aren't even looked askance at for going bankrupt.
It's just accepted that many businesses fail and it's very hard to prove they did so intentionally while hiding large amounts of cash under a mattress.
This isn't the only case I could cite either.
Crivello Construction, Milwaukee, almost created the 1980s S&L crash on their own.
Over $400M taken out of the Bank of New England, (the 1st to fall in the S&L scandal), on property worth less than a third that much - because the son of the BNE president made his kid a loan officer and Crivello had attended Brown University with him.
The kid and Pres of BNE got off scott free.
Crivello himself did 6 months in a federal halfway house and an additional 3 years of probation.
Almost all the money he stole was never recovered, yet because their McMansion and food distributorship company were in his WIFE'S name, she got to keep ALL of their assets - over $100M worth of assets, in fact.
Today Crivello runs a marine salvage company on the east coast with contracts around the globe.
How do I know this?
Because I WORKED for Crivello - saw it happen right in front of my eyes every day for a year.
Money came in, and left via the back door while contractors got stiffed and many eventually either folded or settled in court for pennies on the dollar.
He not only stole money from BNE, he ripped off a LOT of contractors - to the point no decent Milwaukee contractor would or could afford to do business with him anymore.
And I ain't the least bit afraid of libel or slander, because it's all on the court record.
What we see at work here, with Bain Capital and people like Crivello, is an intricate network of people who matriculated together & belong to a fraternity of sorts that is willing to do things for their "brothers" they wouldn't normally do for po' lil ol' me or you - or they are related through marriage and hold positions of power,that can be used to create favorable conditions for their own that very few of us could ever hope to avail ourselves of, or they conspire to just make each other very rich in return for cooperating in what they HAVE TO KNOW ARE SCAMS, from the onset.
I mean how stupid can you REALLY be and still hold a job as a commercial lending loan officer able to get dicey loans approved by the bank's BoD?
THAT is what is being discussed in this election campaign - everyone playing on a level playing field, not one with special laws created for only one very tiny and select group of individuals who can then use those special laws to steal TRILLIONS of dollars from us, banks, and the U.S. Gummint - and never have to suffer the consequences of their criminality..
|10-19-2012 11:41 PM|
|10-19-2012 11:26 PM|
Obviously after a dozen or so of these leveraged buyouts>strip the cash by taking out heavy loans and paying yourself entirely too much for doing it>run the company into bankruptcy and let the banks eat the losses - you'd be asking yourself;
"Are these bankers that phuking DUMB?"
Don't they do a credit check on these people and see how many times they've gone bankrupt?
Yet they STILL continue to loan Bain millions and millions of dollars.
The bankers HAVE to be in on this scam.
If Organized Crime families did this - buying up businesses with "alternative financing" - i.e. money that belonged to other people to begin with but got into their hands through graft, corruption, and outright credit fraud - and then hauling the loot out the back door - the U.S. Gummint would be hauling out RICO indictments wholesale.
But not for the well-heeled from all the right families and colleges, no-siree.
They commit LEGAL Bank Fraud, and in some cases even get the taxpayers to pick up the tab.
|10-19-2012 11:07 PM|
BTW, you're wrong. Ample evidence has been presented in this thread of Bain's predatory practices.
Maybe you'd like to dispute it and present evidence to the contrary....but I doubt you'll do the latter.
|10-19-2012 06:10 PM|
Of course not.
|10-19-2012 10:56 AM|
|10-19-2012 10:49 AM|
You've not substantiated any of your opinions.
|10-19-2012 06:57 AM|
Still debating a strawman in this thread? I am surprised folks didn't dispense with the gross and deliberately misrepresentation of Romney's experience at Bain.
I'll probably get another demerit point here for daring to challenge nic.
|10-19-2012 06:52 AM|
It does beg the question that if it was that easy, why weren't way more people making Romney-money?
|10-18-2012 07:24 PM|
Bain did ~160 deals so your sample is cherry picking.
As to your question, I don't see how it's relevant to the cases in which Bain extracted large sums of money and left the company vulnerable or bankrupt.
AFAIC, there is no excuse for them making a profit at the expense of company survival and employee jobs.
|10-18-2012 06:21 PM|
Of course there's the infamous Staples, but also:
The Weather Channel
Burlington Coat Factory
Hospital Corporation of America
Clear Channel Communications
Experian (credit reports)
These are all still around AFAIK.
Also of note:
"One study of 68 deals that Bain Capital made up through the 1990s found that the firm lost money or broke even on 33 of them"
Wow so I guess they basically have a 50/50 track record of making money. Let me ask.... if you had a 50% chance of making some manner of margin, and about a 20% chance of losing your entire investment, how confident would you be to invest? How thorough would you be in choosing which companies to buy?
|10-18-2012 06:08 PM|
|10-18-2012 06:04 PM|
|10-18-2012 05:21 PM|
This from Reagan's Budget Director, he should have some credibility with the right (if they weren't so much further right than Reagan was).
David Stockman: Mitt Romney: The Great Deformer
|10-17-2012 07:49 PM|
Romney's private equity approach for the U.S. :
1. Load it up with debt.
2. Cut all social programs to make the balance sheet look better.
3. Sell it to China.
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