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On Mitt Romney's Defense Of Bain Capital And The Private Equity Industry - Here Are Some Facts

Tyler Durden's picture


Lately, Bain founder and GOP presidential candidate Mitt Romney has found himself in a spirited defense of the private equity industry, doing all he can to spin decades of data which confirm, without failure, that PE Leveraged Buy Outs are nothing but "efficiency maximizing" transactions whose only goal is the "maximization" of EBITDA in the pursuit of dividend recap deals, IPOs or outright sales, while loading up the company with untenable amounts of leverage. All this with a 3-5 year investment horizon, which ignores the long-term viability of a company and seeks to streamline (read fire as many as possible) operations as quickly as possible in the goal of maximizing short-term returns. We wish him luck in his endeavor. As for the other side of the equation, we recreate a post we penned back in November 2009 which analyzes just how effective the mega-LBOs have been for the economy, and the workers involved. In other words - the facts. In a nutshell, here they are: "The Disastrous Performance Of Private Equity: Of The Top 10 LBOs, 6 Are In Distress, 4 Have Defaulted." Read on for the full details.

From November 6, 2009

One sometimes wonders why the idiots in Washington have still not bailed out the private equity industry. After all, for the low, low price of about $100 billion (which is about how much keeping Fannie on life support will cost US taxpayers in the first quarter of 2010 alone), Congress can ensure that thousands of PE associates, VPs and MDs can once again frequent Hustler Club, order dozens of bottles of Cristal at Lotus, and eat sushi straight off geisha bodies at Bar Masa. In other words, a return to those oh so difficult days of 2007. Furthermore, looking at the track record of PE, especially as characterized by its 10 largest deals in history, one can make the mistake that KKR, Apollo, Bain, Carlyle and Providence are all employing exclusively government workers: therefore the government would in essence be bailing out itself. 

For those who are interested in more information, Moody's has compiled a useful report, entitled "$640 billion & 640 days later: how companies sponsored by big private equity have performed during the U.S. recession." The track record is simply abysmal: Of the top 10 deals, only Hertz, HCA and First Data are considered "stable" which is actually saying a lot ("stable" by Moody's means these firms are likely about to have an alien burst out of their ribcage). For fear of being sued with impunity by the benevolent IR team at Hertz we won't say much, save to say that the firm is exclusively reliant on a stable economy, healthy business travel, vibrant tourism and the lack of default of fleet car makers, and which is leveraged up its colon in double digit leverage multiples. Also, saying HCA and FDC are "stable" in public and one risks being involuntarily committed. Therefore one can say that virtually all of the blockbuster LBO deals are on the verge of collapse/bankruptcy/default/insolvency, etc. If that is not deserving of communist handouts courtesy of Comrade Obama, nothing is.

And while these companies life expectations are limited at best, regardless of how Hertz' lawsuit against anyone who has a sell rating against the firm goes, the biggest threat is to the entire PE industry, which just like the CRE space, will be facing a massive refi threat into 2014. Between 2011 and 2014, there is roughly half a trillion in LBO debt maturing. Add that to the $1.5 trillion in bank debt due for rolling, and the roughly $3 trillion in CRE debt that is also supposed to be refinanced, and one can see how the next president will have his arms full as he/she will need to find a way to roll about $5 trillion in debt without the benefit of securitizations. Furthermore, since the economy will be on stimulus #10 by then courtesy of a drunk with power Obama, America will be on fast track to sovereign and corporate Armageddon.

Anyway, here is the chart that shows the upcoming debt maturities:

And since no Zero Hedge post is complete without ridiculing someone away from the Administration or the Fed (the last two are like shooting fish in an excess liquidity barrel), here is the rating of the worst of the worst PE firms. Not surprisingly, Cerberus is the worst PE firm in the history of the universe, followed promptly by Leon Black's Apollo, of whose 20 deals initiated before 2008, 5 are in distressed and 8 are in default. Hey Calpers, how is that evaluation of your Apollo relationship going?

And as we are confident that the White House will be all over this to find their next bail out target (those $1.1 trillion in excess reserves have to hit the money in circulation somehow), we will present you will the full Moody's report. If, in addition to this, our dear White House readers are in need of reading, comprehension and math lessons, those can be purchased at our Paper Street headquarters: we accept compensation in the form of perpetual, non-accruing, non-PIKing TLGP zeros.


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Tue, 01/10/2012 - 11:22 | 2050172 LawsofPhysics
LawsofPhysics's picture

So, as a CEO/company founder Romney is quite competent at fleecing investors.  Much more so than Obama as Obama has no "real world" experience.  Now wonder the MSM loves this guy.  Fucking Awesome.

Tue, 01/10/2012 - 12:47 | 2050546 Joe Sixpack
Joe Sixpack's picture

Obama has 3 years experience fleecing "clients" in the federal corporation, and has fleeced trillions more than Romney ever did.

Tue, 01/10/2012 - 13:20 | 2050574 Mercury
Mercury's picture

The investors did all right, it's the companies that didn't do so hot.

Still better than your average collection of government programs though. The resoucrces of a failed/distressed company can be re-allocated but government programs never fail in the sense that they actually cease to exist after not delivering the goods (see FRE, FNM for starters).

We'll see who has gotten fleeced ten years post the Legal Take Out of healthcare, student loans, real estate, banking etc.


Tue, 01/10/2012 - 14:18 | 2050930 Canaduh
Canaduh's picture

Bain is a swell group of chaps, at least according to David Gergen.

Anyone who regularly attends Bohemian Grove knows what they're talking about.

Tue, 01/10/2012 - 11:28 | 2050184 GeneMarchbanks
GeneMarchbanks's picture

Mitt Rmoney says 'corporations are people'.

Mike Milken is standing proud somewhere.

Tue, 01/10/2012 - 11:35 | 2050239 Don Birnam
Don Birnam's picture

"You're a two-bit pirate and greenmailer. Nothing more. Gekko ! Not only would you sell your mother to make a deal, you'd send her C.O.D."

Tue, 01/10/2012 - 12:07 | 2050379 Born Patriot
Born Patriot's picture

It's time to take this country BACK from these multiculturalists lead by our muslim president. Vote Ron Paul 2012!

Tue, 01/10/2012 - 13:02 | 2050598 I am a Man I am...
Tue, 01/10/2012 - 15:16 | 2051226 Iwanttoknow
Iwanttoknow's picture

That must be freddie's twin brother.

Tue, 01/10/2012 - 13:19 | 2050672 TheHillrat
TheHillrat's picture

Wish you spoke up during GWB's time in office. Then you would have a leg to stand on. 

Tue, 01/10/2012 - 11:23 | 2050187 spondoolix
spondoolix's picture

If Romney were to get elected, maybe he would consider merging the SEC, the Treasury Dept. and the FED, and then cut the crap out of the new entity and sell it to the Chi-Coms in 3-5 years.

Tue, 01/10/2012 - 12:52 | 2050441 whstlblwr
whstlblwr's picture

Don't understand his popularity, but for good looks, guy's an idiot.

Anyone paying attentin to new Ron Paul slur. He was set up. This guy John Tabin from American Spectator has such good picture of Ron Paul shaking hands with crazy rabbi, that was obviously a plant to scare Jewish people from voting for Ron Paul. And now pictures of handshake are making rounds on web.

I watched the fucking town hall. Ron Paul didn't know this anti-zionist guy, so Jews should feel good that if Ron Paul was an anti semite he'd know the guy and be friends with him. It looked like RP didn't understand what crazy rabbi said. RP nodded, said something like I'll give it to my wife. So good try assholes.

A town hall btw, where RP talks of support for Israel.

"The establishment of Israel came about in a movement called Zionism, and Zionism had two basic principles, one was independence and self-reliance, and I agree with those two basic fundamental premises of Zionism.

"I also don't think we should tell them what to do. If they want to have a peace treaty with their neighbor and think they can work it out, they shouldn't have to ask us for permission...they shouldn't have to ask us permission to defend their borders, that should be their business.

Tue, 01/10/2012 - 11:26 | 2050193 HedgeAccordingly
HedgeAccordingly's picture

The S&P's keep on rising - into pinch point

Tue, 01/10/2012 - 11:29 | 2050208 LawsofPhysics
LawsofPhysics's picture

Nice catch HA, are you predicting equities to the moon as the value of all fiat goes to "zero" or are you simply implying another round of fleecing to cover the government and corporate bonds that are coming due shortly?  Please elaborate.  Something has got to give.

Tue, 01/10/2012 - 12:00 | 2050355 Libertarian777
Libertarian777's picture

equitites to the moon! you ever see how Zimbabwe's stock market grew. Up a couple trillion percent a few years ago.

of course we need not consider the quadrillion % decline in the value of the Zim dollar. That would never happen here because we are USA! USA! USA!

Tue, 01/10/2012 - 12:04 | 2050369 ShankyS
ShankyS's picture

SP - you tha man! Like I sent you yesterday, keep the FOMC schedule in mind when trading. Nothing happens without their apporval.

Tue, 01/10/2012 - 11:26 | 2050195 Conrad Murray
Conrad Murray's picture

But, but Mitt Romney goes to church. Sure, it may be a funny church with a panty fetish, but at least he's not a socialist nigger!

Ok, ok, he's for bailouts and he crafted Obamacare, so maybe he is a socialist, but still not a nigger. Oh, wait, I know...he has great hair and all my media Massas tell me to like him! YEEHAW!

Tue, 01/10/2012 - 11:30 | 2050215 GeneMarchbanks
GeneMarchbanks's picture

'Growing tired of your anti-Mitt shiz' -Mormon who accidentally visited ZH.

Tue, 01/10/2012 - 11:38 | 2050258 Shizzmoney
Shizzmoney's picture

LOL - pretty much the voting public in a nusthell.

I actually think people who vote, are stupid.  I mean, its an inslut to my intelligence the pieces of shit *I* have to choose from for my leaders.  I mean, I think the only way you can run for office is to be a corporate schill.

I think in Mitt Romney's Utopian world, slavery serfdom exists and there is a tax on everything. 

Tue, 01/10/2012 - 12:03 | 2050363 AssFire
AssFire's picture

Dr. Murray your work is not done: It was the "Jackson 5".

Don't forget that...I hope LaToya is next!

Good luck Dr. Murray our nation is counting on you.

Tue, 01/10/2012 - 11:28 | 2050206 Dr. Engali
Dr. Engali's picture

I just don't get how the republican establishment support this guy. They have to know that Obummer will detroy him. Maybe they don't care as long as the system is preserved.

Tue, 01/10/2012 - 11:31 | 2050216 LawsofPhysics
LawsofPhysics's picture

I just don't get how you think the republican establishment is any differerent from the democratic one?

Tue, 01/10/2012 - 11:34 | 2050234 Dr. Engali
Dr. Engali's picture

Hey dickweed I don't. Don't presume that you know anything about me unless you've read my previous posts.

Tue, 01/10/2012 - 11:59 | 2050349 LawsofPhysics
LawsofPhysics's picture

What an intelligent response.  I guess you should live in the present and stop implying that there is a difference, as your post clearly does.

Tue, 01/10/2012 - 12:07 | 2050377 Dr. Engali
Dr. Engali's picture

You sure are an arrogant basturd. Let me clear things up for your embryonic brain. I will type slowly and use little words for you... I do not think there is a bit of difference between the two parties. I think that the system is set up so that the wealth of the nation will be transfered to the elites regardless of who is in power. I don't think things will get better until the federal reserve is brought down.

Tue, 01/10/2012 - 12:13 | 2050409 LawsofPhysics
LawsofPhysics's picture

And you sound like a really, productive, guy to work with.  Good luck bringing down the Fed with that attitude.  I can name-call too fucknut, that gets neither of us closer to bringing down the Fed (also my goal).  Again, thanks for contributing another intellegent response douchebag.  See how productive that was?

Tue, 01/10/2012 - 12:20 | 2050448 Dr. Engali
Dr. Engali's picture

You sound like a real joy yourself. Jumping to conclusions,making presumptions about other people because you try to read between the lines on a single post, to lazy to find out what the other persons position is before jumping on the attack bandwagon. Good luck with your stated goals.

Tue, 01/10/2012 - 12:27 | 2050468 LawsofPhysics
LawsofPhysics's picture

Again, you miss the point.  I never attacked you at the personal level by name calling.  Try negociating your position (and we all have our own unique "positions") in person with that approach and let us all know how that works out for you.

Tue, 01/10/2012 - 12:42 | 2050528 Dr. Engali
Dr. Engali's picture

I do pretty well for myself ,because I don't make presumptions of anothers positions based on a single sentence. I try to gain an understanding of where somebody else stands before making a judgement. So when you say "I don't know what makes you think......" You are pretending to know where I stand based on a single sentence. And to use your own words..." Try negotiating your position with that approach in person and let us know how that works out for you."   Because I can guarantee you that an individual will take that just as personally as being called a less than savory name.    

Tue, 01/10/2012 - 12:58 | 2050589 LawsofPhysics
LawsofPhysics's picture

Well you sure did.  Not familiar with the term "trolling" are you?

Tue, 01/10/2012 - 13:05 | 2050615 Dr. Engali
Dr. Engali's picture

Again...another presumption. Your colors are showing.

Tue, 01/10/2012 - 14:25 | 2050979 Canaduh
Canaduh's picture

I bet the makeup sex between you 2 is incredible.

Wed, 01/11/2012 - 11:57 | 2054636 Temporalist
Temporalist's picture

Probably smells like Santorum.

Tue, 01/10/2012 - 17:53 | 2051857 aardvarkk
aardvarkk's picture

[deep breath] Aaaahhhhh, I *LOVE* the smell of a flame war in the morning!

Tue, 01/10/2012 - 11:33 | 2050233 gjp
gjp's picture

Bingo - the Republicans would far prefer President Obama to President Paul.  There's no difference between Republicrats and Democans anyway.  It's all a show.  Bread and circuses while the plebes get fleeced.

Tue, 01/10/2012 - 11:53 | 2050329 Kayman
Kayman's picture

Without the Fed's free money for the past couple of decades, LBO's could never have existed.  Destruction of real capital, no gain except for the dealer.

Tue, 01/10/2012 - 12:09 | 2050390 old naughty
old naughty's picture

Let's just admit that capitalism is faulted.

To err is human !

Tue, 01/10/2012 - 12:37 | 2050502 NotApplicable
NotApplicable's picture

Pardon me, but capitalism is nothing more than producing more than you consume, saving the surplus until you chose to deploy it in a more productive manner to create more wealth that solves human needs. There is no fault in freedom, but rather in the apparatus of control that alleges to protect us from ourselves.

A free, capitalistic society allows for individuals to own all factors of production, whereas in other political systems they are owned by the state, or state-favored monopolies (the only kind). The US Constitution was supposed to protect our freedom to lead our own lives, but you can see how that is working out.

Now, where's the fault again?

Tue, 01/10/2012 - 13:19 | 2050670 NotApplicable
NotApplicable's picture

I'm always amused at which of my comments get down-voted. At times I say things in an intentional effort to evoke responses, and they go unnoticed. Other times, I try to sharpen the focus of ideas, in an effort to make them more complete and coherent, and along come the down-votes, always without comment.

This internet is a fickle beast.

Wed, 01/11/2012 - 11:58 | 2054644 Temporalist
Temporalist's picture

Ride the snake friend, ride the snake.

Tue, 01/10/2012 - 12:27 | 2050466 BigJim
BigJim's picture

US voters dislike any one major party holding all the cards - ie, they don't want a Dem (or Rep) president, congress, and senate. So it doesn't really matter who wins the presidency - the party apparatchiks know that just means the other party will get a slight preference win it comes to the congressional elections.

And TPTB own both sides, so they don't really care much, either.

Tue, 01/10/2012 - 14:35 | 2051038 Clark Bent
Clark Bent's picture

A fashionable opinion no doubt, but I would be willing to try a Republican President and Congressional majorities for a few years right about now. It could not do worse. 

Tue, 01/10/2012 - 16:02 | 2051462 silverserfer
silverserfer's picture

I am a little happy to see my democrat congressman state in his semi annual newsletter that he is not happy with the  secret $7.5 trillion bailout of banks back in 08 and how hes is aggresivly working toward a complete fed audit. Congressman Defazio of OR. He is starting to sound like RP. I hope this gets rolling a bit more through the ranks of this abysmal congrees.  

Tue, 01/10/2012 - 11:32 | 2050226 lizzy36
lizzy36's picture

Political narrative is a study in hypocrisy.

Romney is a slick salesman. I have worked alongside some of the best. They give one client the buy story, the other client the sell story, put the trade on the tape, take their 3 cents and move on to the next trade.

The point is never invest oneself in one side or the other, just make money off both. 

The takeaway is, it doesn't matter whether one is GOP or Democrat, Romney or is just about the money.

Tue, 01/10/2012 - 11:36 | 2050244 Tyler Durden
Tyler Durden's picture

And yet people follow their every action and listen to their every word (especially those retranslated by brand new twitter aggregators) with such focus and determination...

Tue, 01/10/2012 - 11:40 | 2050268 john39
john39's picture

well that is the point isn't it?  if enough people figured out that the elections are a total sham... then what?

Tue, 01/10/2012 - 12:14 | 2050418 pods
pods's picture

Then we get past Claire Wolfe's "awkward stage."


Tue, 01/10/2012 - 12:39 | 2050509 NotApplicable
NotApplicable's picture

Still, can't shoot 'em yet!

Tue, 01/10/2012 - 11:47 | 2050297 lizzy36
lizzy36's picture

One listens in hopes of frontrunning any mention of a national energy policy. 

Alas, one has been waiting for such a mention since Clinton....SIGH.

Will there is always the next mideast invasion premised on the presence of WMD.

Tue, 01/10/2012 - 11:53 | 2050326 phraseshifter
phraseshifter's picture

all pundits should be "sentenced" to a

                                                 lifetime of "words"

                                                 and solitary "punctuation!"...


Tue, 01/10/2012 - 12:11 | 2050404 old naughty
old naughty's picture

So we are bashing the 'gospel' trades...hummmmm.

Tue, 01/10/2012 - 11:42 | 2050275 GeneMarchbanks
GeneMarchbanks's picture

And all are playing their role to a T so far. Worthy of Shakespeare or Sophocles.

Tue, 01/10/2012 - 11:47 | 2050300 Tyler Durden
Tyler Durden's picture

People cover up the drama and boredom in their own lives by focusing on others' drama: Reality TV, and Politics, 101

Tue, 01/10/2012 - 12:45 | 2050537 Jay Gould Esq.
Jay Gould Esq.'s picture

As an aside - in case anyone has noticed - every post contained within in this thread has been nuked. Come on, lads. A bit too obvious, in terms of political sympathies !

Tue, 01/10/2012 - 13:12 | 2050642 Ghordius
Ghordius's picture

"Politics, 101" ???

is Politics, 102 that part where new parties are formed in the US? Seriously, I know this will cause consternation, but I really thought that the Tea Party and the OWS movements would morph into two serious parties, judging by the grass-root involvement they had. Some mayors, some councils, a couple of seats in the State's chambers, something.

And don't start with the "superiority" of the first-around-the-post system, the UK has it and they have some 5 parties - see the Lib-Dem/Conservative Ruling Coalition.

Come on, are Americans politically lazy? Can't believe that...

Tue, 01/10/2012 - 13:28 | 2050704 whstlblwr
whstlblwr's picture

Some are running for office. What about you?

Tue, 01/10/2012 - 14:14 | 2050905 Ghordius
Ghordius's picture

Not electable - alien!

Wed, 01/11/2012 - 12:01 | 2054659 Temporalist
Temporalist's picture

I for one would vote for a Martian.  Valentine Michael Smith 2012!

Tue, 01/10/2012 - 11:47 | 2050298 323
323's picture


Tue, 01/10/2012 - 11:33 | 2050229 slewie the pi-rat
slewie the pi-rat's picture

good morning, New Hampshire!

Tue, 01/10/2012 - 11:34 | 2050238 realitybiter
realitybiter's picture

Come on.  Lets be honest.  Our Country is the Mother of all distressed debt.  Who could be better qualified to manage us? (Of course, for a small fee...)

I apologize for voting Republican all of my adult life and helping cause the problem we are now in.  

We don't have capitalism or free markets.  We have Crony Capitalism and rigged markets (you know, regulations that aren't enforced, and when they are to the benefit of the highest bidder)

Wake me up when the last 30% of the stolen money at MFG is returned AND Corzine is in a fair trial.


Tue, 01/10/2012 - 11:55 | 2050338 ShankyS
ShankyS's picture

RB - it does not matter which side you vote for they are all the same wolves in sheeps clothing. Ron Paul is our only hope now (and no - he does not have some twin in another star system out there - he's the only one). 

Tue, 01/10/2012 - 12:40 | 2050516 pine_marten
pine_marten's picture

No apology needed there.  I tried the dems first then switched to the repubs and we are still phooked.............

Tue, 01/10/2012 - 11:37 | 2050256 baby_BLYTHE
baby_BLYTHE's picture

Hey Mitt, leveraged financial speculation doesn't count has small business experience!

Tue, 01/10/2012 - 11:41 | 2050273 john39
john39's picture

your point is no doubt lost on his ilk.  in his mind, and most wall streeters...  that is what is understood as productive business experience.   the simple fact that they can't even understand the difference is the real problem.

Tue, 01/10/2012 - 13:00 | 2050594 Urban Redneck
Urban Redneck's picture

And then there are the significant intellectulal critical mass of wall streeters and 1%ers who broke ranks and have been providing free education on the consequences of CHEAP LEVERAGED FIAT debt to their polical class counterparts to get them past their idiotic - you don't speak ill of profit orthodoxy - which will prevent certain politicians from ever getting a fair hearing if it is not overcome.  The danger at this early moment is that the redistributionists stick their foot into it and force an ideological retrenchment to orthodoxy. 

Wed, 01/11/2012 - 12:03 | 2054673 Temporalist
Temporalist's picture

Haha Blythe and Jon39 I bought out my gardener, sold most of his equipment, fired all of his employees, kept the proceeds and hired a new guy and let him use one lawn mower and a seed spreader.  I am a business PRO!

Thu, 01/12/2012 - 04:07 | 2057544 Urban Redneck
Urban Redneck's picture

It may be funny, but the very existence of ZH is testament to people with experience on the bringing the truth to others..

Tue, 01/10/2012 - 11:50 | 2050313 GeneMarchbanks
GeneMarchbanks's picture

Unfortunately 'leveraged financial speculation' cannot even be spelled correctly by most Americans let alone understood for what it actually is.

The proletarianization of all continues...

Tue, 01/10/2012 - 13:23 | 2050653 Ghordius
Ghordius's picture

Urghh.. what an ugly opinion - is it only a caustic remark or is it really your view?

In the EU I hear/read quite a lot about that word "speculation", but of course in a different, broader context... though never with leverage, which is somewhat "avoided in polite society"... LOL (polite society leaves leverage to the banks, eh? they know what they are doing with it...)

Tue, 01/10/2012 - 11:42 | 2050278 Shizzmoney
Shizzmoney's picture

BTW, as much as I cant stand SUPER PACs and the fact the one that created this film supports that asshole Newt, checj out on their site and on Youtube.  The Super Pac that made the film is called, "Winning Our Future" (cue the lulz).

It is powerful shit.  Ironically, Newt probably would have doen the same thing to those people in the film that Mitt did.

Tue, 01/10/2012 - 12:56 | 2050580 MSO
MSO's picture

Folks seem to judge the success of their voting records by how many times they picked a winner. During the campaign, most appear to listen only to the words spoken and overlook the actions taken.

For instance, Ron Paul has been in Congress for 20 years, yet I'm unable to find a single piece of significant legislation that Dr. Paul has introduced and guided through the process into law. In other words, he is a nullity at best.

Romney started his business career at the top and worked his way down to Governor of MA. None of his accomplishments are awe inspiring.

Gringrich also spent 20 years in Congress and is arguably the only man to balance the US budget since 1957. The establishment, with our help apparently, has punished that divorced, couch sitting, hypocrite for his transgression ever since.


Tue, 01/10/2012 - 13:08 | 2050624 fuu
fuu's picture

"For instance, Ron Paul has been in Congress for 20 years, yet I'm unable to find a single piece of significant legislation that Dr. Paul has introduced and guided through the process into law."

Good. Since when did we want a governemnt that did things?

"Gringrich also spent 20 years in Congress and is arguably the only man to balance the US budget since 1957."


Tue, 01/10/2012 - 13:12 | 2050643 Urban Redneck
Urban Redneck's picture

End the Fed???

End ... ???

Tue, 01/10/2012 - 13:11 | 2050634 Urban Redneck
Urban Redneck's picture

would have, no, did

He is ironically suiciding his campaign and trying to save his campaign by the same action, but I think he realizes the inevitable outcome of the path to the inevitable one.  

Tue, 01/10/2012 - 11:48 | 2050307 JimBowie1958
JimBowie1958's picture

Romney is a scum-bag yankee crook, part of the Boston/NE criminal/political machine. Joseph Kennedy built the whole thing on rum smuggling and prostitution.

No wonder these guys are so good at whoring themselves out to the public for votes; lying comes naturally to them after so many years of practice.

Ron Paul 2012 or  Bust!

Tue, 01/10/2012 - 11:56 | 2050341 AGuy
AGuy's picture

Bust is all you get in the end. The level of corruption and ignorance is astronomical. Goodbye freedom and prosperty!



Tue, 01/10/2012 - 12:46 | 2050538 pine_marten
pine_marten's picture

Yes, they go at their malfeasance with an almost sexual fervor.  They are enthralled with their power and wealth.

Tue, 01/10/2012 - 12:30 | 2050478 snowbaall
snowbaall's picture

Mittens is a vulture capitalist.

But his wife's ass takes the cake.

BAIN was simply formed to strip the bones clean.

Mittens would make a hyeana proud.

He's a real scavanger.

Tue, 01/10/2012 - 11:50 | 2050315 ShankyS
ShankyS's picture

Ballsy TD poking your finger at Mittlicious. Of course I am not surprised and expect nothing less. Of course a digital dickweed's facts are meaningless in reality. All hail the central planners! Keep up the great and historical work you all do. 

Tue, 01/10/2012 - 12:23 | 2050459 Conrad Murray
Conrad Murray's picture

Hmmm, this makes me think we need a Beaker bashing post for old-time sake. Every time I see that retard on FBN I cringe and change the channel. I bet he's still spouting nonsense worthy of bringing the axe back out by some Anonymous blogger.

Tangential, I swear I saw Jeff Macke on a business show a week or two ago.

Tue, 01/10/2012 - 11:52 | 2050320 Bahamas
Bahamas's picture

Romney will LBO the world with Fed fiat

Tue, 01/10/2012 - 13:14 | 2050651 Urban Redneck
Urban Redneck's picture

Bernanke has beaten him to it

Tue, 01/10/2012 - 11:55 | 2050334 Downtoolong
Downtoolong's picture

I’ve got a feeling we’re going to see the same kind of performance and reward structure unfold for most of the recent hot new IPO’s, i.e., the founders and senior management shareholders get filthy rich and public investors end up taking it in the ass. Just to recap a few from last year:

               IPO         Mkt        % Chg

P             16           11.4       -29%
Grpn      20           19           -5%
Znga      10           8.3         -17%

Wall Street may be adept at helping some people make money, but, apparently this doesn't include many public investors.

And now, Heeeeere’s Facebook.


Tue, 01/10/2012 - 12:00 | 2050344 Cult_of_Reason
Cult_of_Reason's picture

This pure political B.S. diarrhea post, will go a long way in you losing all credibility Tyler.

Tue, 01/10/2012 - 12:04 | 2050367 ClassicalLib17
ClassicalLib17's picture

Cult of Reason,  I don't pretend to have any profound knowledge of the financial sector, so would you care to elaborate for one who is eager to hear both sides?

Tue, 01/10/2012 - 12:05 | 2050372 GeneMarchbanks
GeneMarchbanks's picture

Apparently 'Reason' isn't the only cult you're in...

Tue, 01/10/2012 - 12:04 | 2050361 BLOTTO
BLOTTO's picture

Mitt Romney - is a Sun Worshipper ie. Luciferian.

His great-great grand daddy Parley Pratt - was an 'apostle' and a buddy with - Joseph Smith Jr... 'ONLY' the founder of the Mormon Church and recipient of the 'divine word' and 'golden plates.'

Pratt then returned to Fayette, New York in October 1830, where he met Joseph Smith and was asked to join a missionary group assigned to preach to the Native American (Lamanite) tribes on the Missouri frontier.

Pratt practiced plural marriage and had twelve wives. One of Pratt's great-great-grandsons is Mitt Romney, former Massachusetts governor and candidate for the 2008 and 2012 Republican presidential nominations.


LOL...Thats like MY great-great^21 grandfather is John or Mark or Luke - and they just happenned to hang out with Jesus.

Leaders are not elected - they are born. RP was not born into this.

The Mormon Chuch historically did not aprrove of 'blacks' in the ministry... So, we have a good election coming up... Mitt Romney (Mormon) vs. Obama (?) - both look different and seem to be on different ends to battle each other - however in the end, they both are on the same team serving the Lucefirian occultist ways...

Ya digg?

Tue, 01/10/2012 - 12:08 | 2050385 john39
john39's picture

what's all this crazy talk about lucifer?  I didn't see anything about that on CNN!  besides, everyone knows all that talk about one world currency and government is just crazy nutter talk....  /s

Tue, 01/10/2012 - 12:49 | 2050552 pine_marten
pine_marten's picture

So mitts has a white salamander in the woodpile?

Tue, 01/10/2012 - 12:08 | 2050386 overmedicatedun...
overmedicatedundersexed's picture

too bad the criminals are in charge. fixing the votes or fixing who gets to run. I am amazed more of my fellow Americans do not want to see the hidden hand up every so called front runners arse..RP excepted I hope.

Tue, 01/10/2012 - 12:15 | 2050425 EatersOfTheFed
EatersOfTheFed's picture

Since Paul will not be allowed a win, I am voting for the candidate who can bankrupt us the fastest.

Tue, 01/10/2012 - 12:41 | 2050524 King_of_simpletons
King_of_simpletons's picture

Sad but true principle. We do not have any choice. Why draw this out a few more years....

Tue, 01/10/2012 - 12:17 | 2050433 BLOTTO
BLOTTO's picture

Wasn't all that long ago that someone was crazy as a loon if they spouted off about martial law coming to America.  Now they've got armed TSA agents frisking old ladies at the Social Security office.  And that's OK.

Not even a decade ago, you were a tin foiler if you dared to mention black helicopters.  I was, even though I had a sworn statement from an air traffic controller at Miami-Dade who had seen them and knew that they had the required N-numbers painted in IR paint on the tails.  Now there's black helicopters in the movies and drones over the house.  And that's OK.

It was just a while back that a guy was completely 'round the bend for suggesting the US government was building stalags all over the freakin' place.  I even had photos of one in Hockley, TX that I posted on the Internet.  But I was half-a-dozen sandwiches short of a picnic.  Now they're posting bid tenders on fed websites for vendors to build and staff them in five regions around the country.  And that's OK.

Chemtrails?  No problem.  Police gunning down grade schoolers?  Go for it.  Assassinating American citizens without trial or conviction?  Yee-haw!  Indefinite detention because they don't like the way you smile and kiss ass?  Yeah baby!  That's the way I like it!  Waco?  Love it!  Ruby Ridge?  More more!  Elian Gonzales?  He deserved it!  Murder...mayhem...utter disregard for the rule of law and centuries of jurisprudence?  YES YES YES!!!

The world is under a massive spell. At some point - we need to think outside the box. looking at charts all day - is not looking/thinking outside the box. Their was no charts - 1,000 years ago.l.. only symbols, stars, dates and numbers...


Tue, 01/10/2012 - 16:40 | 2051586 Westcoastliberal
Westcoastliberal's picture

Yes, slowly but surely we're creeping into that fascist realm that was known as Nazi Germany.  Now new and improved with extra George Orwell.


If you agree with me that collapse is becoming unavoidable, don't despair, prepare!

Tue, 01/10/2012 - 12:19 | 2050443 BLOTTO
BLOTTO's picture

You dont buy Gold and Silver because Ron Paul got it (lets just say he gets in)

You would keep buying Gold and Silver (if RP is in)  because - nothing will change = more of the same.

Tell me differently? - your all brainwashed with smiles and speeches.



Tue, 01/10/2012 - 12:27 | 2050450 BlackholeDivestment
BlackholeDivestment's picture

...what's the difference between a Mormon, a Moron and Mitt? 


...the ''i and t's''

Tue, 01/10/2012 - 12:24 | 2050460 williambanzai7
williambanzai7's picture


Tue, 01/10/2012 - 14:58 | 2051163 ebworthen
ebworthen's picture

"Mitt Zombie for Prezident of Ahmerika!  Crony Capitalism - the gift that keeps on taking!"

Tue, 01/10/2012 - 12:35 | 2050481 Hephasteus
Hephasteus's picture

Computer industry is just crashing and burning.

Intel caught using video during a demo.

Microsoft had the most uncomfortable presentation ever. With everyone glad when it was over.

Tue, 01/10/2012 - 12:36 | 2050501 AldoHux_IV
AldoHux_IV's picture

With so many CRE refi's in the pipe, it now makes sense why a moronic imbecile like Romney would get so much attention in the press-- another implant for the other side of wall st to get there much needed bailout.

Whose mouthpiece will win will depend upon who needs the most help (aka taxdollar bailouts) in the coming presidential cycle.

Tue, 01/10/2012 - 12:46 | 2050541 SystemsGuy
SystemsGuy's picture

... and yet, Microsoft's considered a prime stock because it issues great dividends, even if it's stock price has sat within 1 st. dev of $25 for a decade. Ballmer should retire and hand the company to someone who doesn't still see the world through PC glasses.

Tue, 01/10/2012 - 12:58 | 2050587 Oquities
Oquities's picture

one can of course make the capitalist case that without "efficiency maximizing," as you called LBO restructuring, these companies might become distressed at an even higher rate.  that would lead to even more lost jobs. of course we can't know, but the attempt to save a failing company through restructuring gives it a chance, perhaps.  the real problem is the excessive fee extraction during the process.Mitt got that money.


Tue, 01/10/2012 - 19:07 | 2052096 Oquities
Oquities's picture

i said this in the morning, and Ron Paul said it in the afternoon.

Tue, 01/10/2012 - 13:34 | 2050721 dirtbagger
dirtbagger's picture

You really don't need a chart to see the obvious consequences of LBO's.   They are simply a method (legalized robbery) of extracting cash from shareholders, company pension funds, and employees. 

Why would anyone expect a company to prosper after being stripped of its cash flow?   Post LBO cash flows go toward the repayment of the new debt.  Something has to suffer - less capital for R&D, less customer service, lower marketing budget, less capital for equipment, poor employee moral, etc.   The debt basically kills any chance for the company to effectively compete in their markets 3-4 years later.

Tue, 01/10/2012 - 14:00 | 2050825 WatchnSee
WatchnSee's picture

Just for balance on ZH the ledger...

-President Obama has still managed to raise far more money this year from the financial and banking sector than Mitt Romney or any other Republican presidential candidate. Add up all Wall Street donations to all GOP candidates combined, and it won't equal what Obama has pulled in.

-Obama raked in $76,600 dollars from Bain Capital employees through September - to Romney's $34,000.

-Six Goldman employees also gave a total of $92,000 to the DNC side of Obama’s fundraising effort.

-One of Obama's primary sources of cash, for example, is a small Chicago firm called Chopper Trading, which employs a technique of rapid, computer-assisted trading that some experts blame for volatility in the stock market. Employees of the company gave Obama $222,000 after Vice President Biden held a fundraiser at the home of the company’s chief executive, Rajiv Fernando, a campaign bundler.

-Unlike the Republican candidates, Obama can raise money for both his own campaign account, which can take donations up to $5,000 for the 2012 cycle, and for his party’s national committee, which can accept $30,800 per individual each calendar year. The same donors will be able to give another $30,800 to the DNC next year.

-President Obama is trying to put some distance between himself and the wreckage of bankrupt brokerage MF Global. But not too much distance. After returning more than $70,000 to Jon Corzine, the CEO who led MF Global into bankruptcy, the president’s re-election organizations are still hanging onto nearly $150,000 connected to the firm.

And the list goes on....

Anybody but Obamao!

Tue, 01/10/2012 - 16:05 | 2051475 billsykes
billsykes's picture

Come on if Ron Paul even is an anti Semite what would he really do?Even if he is a huge anti semite what would he do?

What, start firing up the fucking ovens? Crack jew rabbi jokes on leno? Make fun of their small hats?
Pass laws segregating Jews into only certain areas?

Get real.

Maybe if this crazy argument followed any sort of logic, cut off or reduce funding for Israel and their reign of terror in the middle east? I think the amount of money given over the table to Israel pales with how much they gave Pakistan over the last couple of years.

Either way its peanuts compared to what they gave the bankers.


Tue, 01/10/2012 - 16:48 | 2051602 rayduh4life
rayduh4life's picture

Should be interesting to see what this LBO azzhat can do with the G.  300+ million and this is the best we can do? 

Tue, 01/10/2012 - 17:47 | 2051813 GeoffreyT
GeoffreyT's picture

Come on, TD - you're smarter than that.

PE/LBO firms are all about the SpecDiv - they don't give a fuck what the underlying business does (or how their 'reforms' affect that).

It's 4 steps:

  • Buy a public company (trading P2NTA < 1 if possible) using ITS OWN access to debt markets;
  • raise a SHITLOAD of debt under the company's name and pay yourself a special dividend (for being so clever in leveraging the company's balance sheet);
  • Do some registry shenanigans (do a buyback, issue yourself some DOOM options - signal false expectations to the numpties)
  • IPO that motherfucker lickety split (because you know it's balance sheet is fucked).


Rinse and repeat.

That's KKR/Bain/Carlyle's business model.

It doesn't take any talent - it takes

  • access to credit markets for the non-leverage part of the buyout (the 'L' in LBO is usually furnished by the target company itself), and
  • access to media (for the IPO/resale pimping).

That is why the ranks of these firms are full of politicians and ex-politicians.


I suppose you can add another step for firms that have legacy defined-benefit pension funds: "rape the pension fund [get a freindly actuary to furnish some E[RoR] that enable you to take OUT cash (thus giving you a P&L boost)".

Fri, 06/01/2012 - 17:02 | 2485975 W10321303
W10321303's picture

So does that make the blodd-sucking parasite worse or the same as an old politburo member from SU or GDR? (my only question about him)

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