IT’S PURPOSE WAS NOT TO CREATE JOBS; IT’S PURPOSE WAS TO MAKE MONEY, LOTS OF MONEY FOR BAIN FIRST, INVESTORS SECOND – JOBS BE DAMNED
While I was a senior investment banker, I was vocal about how Wall Street Mergers and Acquisitions bankers and takeover companies like Bain Capital were hurting the American economy by focusing profitability on a quarterly basis. Three month profit targets are virtually impossible to meet unless you are cooking the books like certain companies that will live in infamy.
The net effect of this focus on three month or quarterly profitability regrettably focused management on short term measures rather long-term growth. With the vultures of of the M&A industry (who also faced their own quarterly profit goals) circling the twisting and parched victims of so-called profit/loss targets. As our industries could not meet these targets except to layoff workers and cut essential research a whirling effect was evident in the cesspool called profitability. There was a sucking sound as jobs, livelihoods, American prominence in industry all were sacrificed to the Masters of the Universe.
As a result, jobs were lost forever, great companies like Westinghouse were slaughtered and their carcasses were dissected into so many cuts of meat and fed to the highest bidder. In the interest of profitability, the jobs that were cut in America were shipped overseas to workers hungry for work and willing to work for far less than our folks in the homeland and often with little or no benefits.
As an investment banker, my objective was to create jobs by building essential industry and infrastructure. I worked hard to see power plants, roads, ports and other major construction projects come to life here and abroad. My reward for protesting the mindless dissection of our industry was to be told I wasn’t smart enough to understand how things worked; perhaps I didn’t.
Sure, I believed and still believe that easing trade barriers is essential to a safe and secure world. But I do not see this as an invitation to come into my home and take everything you fancy and leave me with nothing.
But Bain Capital was a master at converting the three month profitability bogey to butcher companies and make money for themselves. It really did not matter that jobs and lives were destroyed. The next video is very, very informative and accurate.
PLEASE REMEMBER THIS FUNDAMENTAL ROMNEY LIE ON NOVEMBER 6. HE DIDN’T CREATE JOBS, IN FACT HE LOVED TO FIRE PEOPLE.
The common meaning is that it is the act of gathering a crop that has matured. Have you ever watched a harvest? Generally speaking the live plants are killed in order for the harvester to gather the crop. Is this what Bain Capital did to their invested companies.
Not in the literal sense, of course. But to suggest that Bain Capital main purpose was to be a creator of jobs is disingenuous, at best. It’s main and sole purpose was to provide profits for its investors.
Not a bad purpose to be sure, but tell that to the workers whose jobs are terminated in downsizing or outsourced in order to produce maximum profitability for Bain Capital investors.