What is coming to light in the political spotlight of Mitt Romney’s
quest for the White House is the manner in which his company sought capital and
made money, profits by sacking existing companies and their assets, pension
funds, repackaged the company’s spreadsheet image, sold the companies for huge
returns on junk bond capital and turned around and did the same thing on the next
victim company acquisition of Bain Capital.
One of the causes of the stock market crash of October 1987 was a market
floating on inflated junk bond capital raised by Michael Milken at Drexel Burham
Lambert and similar imitators.
The market bubble that burst in 1987 was a bubble that fueled the
Savings and Loan bubble that burst shortly thereafter. This invented high risk money
fueled speculative building in office buildings, shopping malls, golf courses
and housing all over the west. Because of the junk bond model pretty much
invented by Milken at Drexel Burnham and used in speculative investments funded
in loans by banks, savings and loans, guaranteed by the federal government, the
S & L debacle got dumped on the American taxpayer during the Bush 41
regime. 700 to 800 billion back then,
now about a trillion and a half of the present national debt with over twenty
years interest added on.
The only big fish punished back then was Charles Keating, heavily into
the newly deregulated S & L industry, separated from regular commercial
banking in that their base was savings used almost exclusively in financing housing
real estate and not necessarily commercial building, office buildings, malls
and apartment complexes that fed on easy junk bond funding once deregulation
went into effect.
Bain used Drexel Burnham junk bond capital to fund its early vulture
capitalism projects.
Michael Milken and Charles Keating were eventually tried and jailed for
fraud among other things like conspiracy cooking the books and breaking
existing laws. They are now out of jail
and back in business. Keating in real estate in Arizona and Milken is a philanthropist
giving away some on the money he made from fraud and is now a key player in the
next financial racket bubble to burst – EMOs – Education Management Organizations
into education for profit, charter schools etc. feasting on the public dime.
Romney did not break any laws that we know of at Bain. Indeed, the government swallowed up the
losses caused by the Savings and Loan Fraud.
If Bush 41’s admin had prosecuted more smaller fish than just Keating instead
of sweeping it all under the rug, maybe the housing bubble burst in the 2008 financial
meltdown under Bush 43 might not have been allowed to happen if deregulation of
the American banking industry had learned any serious lessons from the Bush 41
Savings and Loan Junk Bond meltdown.
Sadly, so much of what happened in 2008 with the banks was not illegal as
stated by Obama.
Things like junk bonds in their time and derivatives and hedge funds today
are little understood let alone regulated by realistic laws to protect the
public.
Mitt Romney and Bain Capital did not break any laws that we know
of. But taking, looting pension funds
from employees, taking other benefits away like healthcare and outsourcing old jobs to China and India is
the way American business operates these days.
Not very Christian by my definition of such. But Mitt has a Mormon bible besides the Judeo
Christian bible by which to live his life.
No doubt the 21 trillion dollars worldwide hiding out in offshore tax
havens is part of the reason Mitt refuses to reveal his recent tax returns, that
and the 10% of his income donated to his church and their related hate projects
ongoing as holy on Temple Square, Salt Lake City.
Putting lipstick on a pig like with Bain Capital operating methods or
Mitt’s “humanity” is a metaphor Jesus would understand and be amused by.
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