Friday, September 28, 2012

Latest Media Attack on Romney

The Obama campaign has released a video from 1985 where a young Romney is talking about the Bain Capital business strategy. The attack on Romney centers on the comment of buying undervalued companies and then in 5 to 8 years time harvesting their investment at a profit.

While it is nowhere stated in the video, Theo Obama campaign links this "harvesting" comment to bankruptcy and off-shoring and job loss. What the media leaves out is Romney's comment about helping companies "realize their potential value".

The important point here when it comes to bankrupt companies that the media continually fails to point out, is that this Romney's handling of bankruptcy is how bankruptcy should be performed. Romney's not picking a profitable company and leaving them bankrupt. If Bain capital chose to invest in a struggling company it was already failing and bankrupt. Instead of a government bailout like GM, the Romney strategy it was to reorganize and restructure the company keeping the profitable parts of the company and eliminating those parts of the company that were failing and not profitable.

The Romney/Bain Capital system is how bankruptcy is to be done and has nothing to do with off-shoring jobs to China it has to do with how bankruptcy should be handled and saving valuable US companies and returning them to profitability without needing a federal government bailout.

When a failing company goes through bankruptcy and restructuring instead of getting a bailout, do some people loose their jobs? Yes, but many more Americans keep their jobs, and a good American company is saved and returns to profitability.

When you save a bankrupt company from collapse, do the restructuring investors make money? Yes, because the one-time worthless stock rises as the company returns to viability and profitability.

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