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Daily Kos: Mitt Romney's Bain Capital 'earned' $342 million by bankrupting a company and firing 850 Floridians

Thu, 26 Jan 2012 00:00:00 -0800

Daily Kos - Jan. 26 (News) - How dare anybody question how Mitt Romney earned the money he's invested in the Caymans! Via McKay Coppins , you can add The Miami Herald to the list of people and organizations who Mitt Romney says are attacking free enterprise. That's because today's edition takes a look at how Bain Capital "earned" $342 million from investing $30 million in the acquisition of medical technology firm named Dade International. Despite profiting by hundreds of millions of dollars from the deal, Romney's company led Dade to bankruptcy, laying off thousands of workers throughout the country—including 850 in Miami alone. The Herald's story focuses on the impacts of Bain's business practices on Florida, but it's worth going back to this The New York Times article from November. According to The Times , Bain led a group of investors who acquired the company for $450 million in 1994. Bain's share of the price tag: $30 million. Then: By 1998, Mr. Romney and his restless colleagues at Bain began looking for a way to cash out of the firm’s investment in Dade. A hefty offer arrived. Kohlberg Kravis Roberts & Company, a rival buyout firm, proposed buying Dade Behring for $1.9 billion, according to documents filed in the bankruptcy case. But Bain executives rejected it, disappointed by the price, the documents indicate. Bain settled on a common tactic in private equity: In April 1999, it pushed Dade to borrow hundreds of millions of dollars to buy half of Bain’s shares in the company — and half of those of its investment partners. Bain pocketed the $242 million. Goldman received $121 million. Top Dade executives got $55 million, records show. The total payout to shareholders reached $420 million — nearly as much as the purchase price for Dade. In addition to the $242 million, Bain took $100 million in management fees for running the company. But despite their $342 million payday, Bain led Dade directly into bankruptcy: The strategy of sharply increasing Dade’s debt alarmed several executives. Mr. Garrett, the former chief executive of Dade who stood to gain from the transaction, said he had argued unsuccessfully against it. “It was too aggressive,” Mr. Garrett said. “It was done right up to the limit of what the company could borrow.” With the amount of money that Dade owed to creditors and vendors at nearly $2 billion, some executives worried that the company would have little maneuvering room if its financial situation suddenly deteriorated. Soon enough, it did. Interest rates rose, increasing Dade’s debt payments. The value of the euro, then a new currency, slid, reducing Dade’s European revenue. And a new distribution center had unexpected delays. Creditors, unsettled by deteriorating finances and high debts, began to pounce. More layoffs followed. And in August of 2002, Dade filed for bankruptcy protection. Bain ultimately relinquished its ownership claim, but it had already taken $342 million out of company, an 11-fold return on its $30 million investment in less than eight years. Fortunately, the bankruptcy didn't destroy the company, which emerged from bankruptcy and has prospered since Bain gave up its ownership stake. But even though Dade is now a successful company, its success comes despite Bain Capital—not because of it. Obviously, the story is timely because of the upcoming Florida primary and the fact that nearly one thousand Floridians lost their jobs as Bain bankrupted the firm, but if Romney gets the nomination, it won't simply fade away. Perhaps he can convince Republicans that questioning how he managed to "earn" $342 million while bankrupting a company is the same thing as assaulting free enterprise, but he won't be able to convince Americans of that. And given that Mitt Romney cites his private sector experience as the number one reason why he should be president, that's a big problem for Mitt Romney to have.

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Mitt Romney's Bain Capital 'earned' $342 million by bankrupting a company and firing 850 Floridians

Tue, 24 Jan 2012 00:00:00 -0800

Daily Kos - By Jed Lewison - Jan. 24 (News Analysis) - you can add The Miami Herald to the list of people and organizations who Mitt Romney says are attacking free enterprise. That's because today's edition takes a look at how Bain Capital "earned" $342 million from investing $30 million in the acquisition of medical technology firm named Dade International. Despite profiting by hundreds of millions of dollars from the deal, Romney's company led Dade to bankruptcy, laying off thousands of workers throughout the country—including 850 in Miami alone.

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On day of Mitt Romney's tax release, poll finds widespread support for raising taxes on the 1%

Tue, 24 Jan 2012 00:00:00 -0800

Daily Kos - By Laura Clawson - Jan. 24 (News Analysis) - The Times highlights the partisan divide, but when you have nearly 7 in 10 Democrats, nearly 6 in 10 independents, and about 4 in 10 Republicans agreeing on something, I'd call it a position with significant bipartisan support. Additionally, about half the people surveyed thought that capital gains and dividends should be taxed the same as work, instead of at the much lower rate that allows non-working people like Mitt Romney to pay such low tax rates. Romney, meanwhile, is running for president so he can lower his own taxes while raising taxes on everyone making less than $40,000 a year and increasing the deficit. He sure does have his finger on the pulse of working America, doesn't he?

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New Walkergate Charges - the short version

Fri, 06 Jan 2012 00:00:00 -0800

Daily Kos - By Giles Goat Boy - Jan. 06 (News Report) - Here's the really short version: A Walker appointee, a Walker campaign aide, and a child molester embezzled money that was intended for disabled veterans.

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A Voice From the 1%

Thu, 27 Oct 2011 00:00:00 -0700

Daily Kos - By Gaius - Oct. 27 (Opinion) - The impetus behind the Occupy Wall Street movement - a vague sense that the rich are getting ever richer while everyone else suffers - was confirmed by a recent report from the Social Security Administration showing that while total employment and average wages remained stagnant, the number of people earning $1 million or more grew by 18% from 2009 to 2010. Those figures give real substance to the "We are the 99%" slogan, yet Republicans continue to insist, despite all evidence to the contrary, that if anything those "job creators" deserve an even greater share of our national income. The Tea Party, meanwhile, has launched its own "53%" movement, inexplicably rallying the working class to the defense of the wealthy. The one group rarely heard from in this rancorous debate is the 1%, whose incomes and taxes are its focus. I am one of them, and here is my perspective, which may surprise you.

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Alan Grayson Destroys PJ O'Rourke on Maher

Mon, 10 Oct 2011 00:00:00 -0700

AlterNet - By Upper West - Oct. 10 (Opinion) - Nothing pisses me off more than when a show like Bill Maher's has on a conservative who is permitted to spout lie that are unchallenged. It's fine to have Republicans on a "liberal" show like Maher's, but not when they get away with that. That's why I was thrilled to see Alan Grayson absolutely demolish the insufferably smug, lying P.J. O'Rourke tonight. (O'Rourke also appeared to have had one too many before the show.)

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Daily Kos: Low Capital Gains Tax Rates Hurt the Economy

Mon, 19 Sep 2011 02:16:05 -0700

Daily Kos - Sep. 19 (Opinion) -

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The worst thing that Rick Perry said ...

Sun, 21 Aug 2011 00:00:00 -0700

Daily Kos - By Mark Sumner - Aug. 21 (Opinion) - Climate change may be the greatest threat human civilization has ever faced. We don't know for sure, but there's a good chance that if we allow this process to go unchecked, or accelerate the change through expanded use of fossil fuels, warming may actually topple 11,000 years of progress. At the very least, it looks to cost untold lives and unimaginable fortunes as desertification overtakes farmland, oceans invade both land and freshwater environments, storms ramp up to previously unwitnessed ferocity, and millions (if not billions) of people are forced to pick up and move. It's a problem of daunting, almost unimaginable scale. And yet, when the media condenses Rick Perry's statements this week to "Perry comes out against climate change," they're missing not just the story, but the danger in what he said.

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Bruce Bartlett desroys every Republican fiscal talking point in 5 minutes.

Fri, 29 Jul 2011 00:00:00 -0700

Daily Kos - By SharksBreath, Bruce Bartlett - Jul. 29 (Opinion) - i think a good chunk of the Republican caucus is either stupid, crazy, ignorant or craven cowards, who are desperately afraid of the tea party people, and rightly so.

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WI DMV Tells Boy His Bank Account Doesn’t Show Enough “Activity” To Get a Voter ID

Wed, 27 Jul 2011 00:00:00 -0700

Daily Kos - Jul. 27 (News) - A video has surfaced of a boy trying to get one of the new Wisconsin Voter ID's that were ushered in by the signing of new a voting law in the state. Shot by the boy's mother with the clear intention of indicting the process, the video shows the pair going from station to station at the DMV, asking all of the right questions as to why there are so many hurdles to acquiring this constitutionally guaranteed ID card.

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Daily Kos: Exxon CEO: Oil Price is 9x Higher than Production Cost

Wed, 25 May 2011 00:00:00 -0700

Daily Kos - May. 25 (News) -

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Toward a balanced budget: First end the Bush era tax cuts - Daily Kos

Sun, 17 Apr 2011 19:04:50 -0700

Daily Kos - By rss@dailykos.com (Laurence Lewis) - Apr. 17 (Opinion) - Castle made of sand (Tamorlan, Wikimedia Commons) Other than the fact that this speech is being given at all, I didn’t have a major problem with it. There was much in the speech that should encourage Democrats, but as always with this president, it will be the details that matter. And maybe hidden in the details of the rhetoric was a path toward an even stronger stand on the details of policy. But Dayen was right: there was no reason for such a speech in the first place. Apparently, there is no end to how many times it needs be reiterated, but with the economy barely recovering from a devastating recession Democrats should not be talking about deficits. Democrats should not be initiating conversations about deficits, but that was exactly what President Obama did when he established the Catfood Commission. Democrats should instead be talking about a further stimulus package to establish and accelerate real job growth. That would be responsible economics. It also would fit nicely with public ...

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Factcheck got it really wrong about Social Security

Fri, 25 Feb 2011 00:00:00 -0800

Daily Kos - By Dolly Madison - Feb. 25 (Opinion) - Too many people don't understand how Social Security is funded and don't bother to try to figure it out. Others understand, and then prey upon those who don't in order to fearmonger. Still others try to get it right, but get confused with all the info and then proceed to misinform others! I don't know what Factcheck.org's excuse is, but they posted a piece today that's extremely, undeniably false and misleading with respect to Social Security. They apparently failed to know or learn that there are 3 milestones with respect to the funding of Social Security

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The modern GOP is irresponsible and dangerous

Sun, 13 Feb 2011 00:00:00 -0800

Daily Kos - By Laurence Lewis <rss@dailykos.com> - Feb. 13 (Opinion) - The modern GOP is irresponsible and dangerous

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Daily Kos: Legal victory for Obama administration on health reform

Thu, 03 Feb 2011 00:00:00 -0800

Daily Kos - By Joan McCarter - Feb. 03 (Opinion) - A judge in Mississippi has thrown out a suit challenging the constitutionality of the Affordable Care Act. The judge did "grant in part" the administration's motion to dismiss the case on the basis of standing, but did give the plaintiffs a month to amend their complaint. The judge, Keith Starret, who serves on the U.S. District Court for the Southern District of Mississippi, ruled that plaintiffs suing over the coming implementation of the individual mandate did not demonstrate sufficient standing for him to take the case.... "The Court finds that the allegations of Plaintiffs' First Amended Petition, as stated therein, are insufficient to show that they have standing to challenge the minimum essential coverage provision of the PPACA [Patient Protection and Affordable Care Act]. Therefore, the Court dismisses Plaintiffs' First Amended Petition without prejudice." The ruling is welcome news for the president, who earlier this week suffered a legal setback when a federal judge in Florida ...

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: Comments Rep. Gabrielle Giffords shot in Arizona

Sat, 08 Jan 2011 00:00:00 -0800

Daily Kos - Jan. 08 (Opinion) -

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Social Security groups fear back-room deal

Tue, 04 Jan 2011 00:00:00 -0800

Daily Kos - By Joan McCarter - Jan. 04 (Opinion) - Advocate groups working to strengthen and protect Social Security are sounding the alarm about a potential back-room deal between Obama and Republicans on Social Security with the debt-ceiling and government funding fights looming. At least one Republican Senator, Lindsey Graham, has threatened to take Social Security hostage, the beginning step in a potentially disastrous deal.

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Trouble in Pakistan

Fri, 08 Oct 2010 00:00:00 -0700

Daily Kos - Oct. 08 (Opinion) -

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Somalia: The Next Afghanistan?

Fri, 17 Sep 2010 00:00:00 -0700

Daily Kos - Sep. 17 (Opinion) -

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Village narrative sets in: It's the liberal overreach - Daily Kos

Thu, 02 Sep 2010 15:25:29 -0700

Daily Kos - Sep. 02 (Opinion) - Via Armando , TIME magazine?s Michael Scherer fires the first real salvo in the "it?s the progressives fault" for the looming Dem disaster in November. In the section subtitled "The Overreach" (you didn?t see that coming, right?) he says: After a meeting in December 2008 about the severity of the economic crisis, Axelrod pulled Obama aside. He recalls saying, "Enjoy these great poll numbers you have, because two years from now, they are not going to look anything like this." But even as Obama aides were aware of a growing disconnect, it didn?t seem to worry their boss. Instead, the ambitious legislative goals usually trumped other priorities. Both in the original stimulus package and then in the health care and energy measures, the White House ...

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Jack Conway signs Daily Kos filibuster petition

Wed, 18 Aug 2010 11:01:55 -0700

Daily Kos - Aug. 18 (Opinion) -

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Daily Kos: Paul Ryan getting defensive about his "road map"

Tue, 17 Aug 2010 00:00:00 -0700

Daily Kos - Aug. 17 (Opinion) - More evidence of the popularity of Social Security and Medicare: Paul Ryan?s denial that he?s trying completely rehaul Medicare . "The Democrats? political machine has attacked my contribution to this debate," wrote Paul Ryan, "making the false claim that the only solution put forward to save Medicare would ?end Medicare as we know it.?" This is a baffling line of argument. There?s nothing false about the claim that Ryan?s plan would end Medicare as we know it. In fact, it?s unambiguously true. Currently, Medicare is a government-run insurer that pays the health-care costs of all senior citizens. Under Ryan?s plan, senior citizens would be given vouchers that they could use toward private insurance. Poor seniors would get more-generous ...

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Black Power's Gonna Get You Sucka: Right-Wing Paranoia and the Rhetoric of Modern Racism

Mon, 12 Jul 2010 00:00:00 -0700

Daily Kos - By Tim Wise - Jul. 12 (Opinion) - Prominent white conservatives are angry about racism. Forget all that talk about a post-racial society. They know better than to believe in such a thing, and they’re hopping mad.

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The Republicans' class war

Sat, 03 Jul 2010 00:00:00 -0700

Daily Kos - By Tmaertens - Jul. 03 (Opinion) - For many years now, Republican economic policy has been built around two principles: "trickle down," and "starve the beast." Trickle down is a broad justification for policies favoring the wealthy: Cut taxes on the rich, the theory says, and they will invest, create jobs, and generate more tax revenue. David Stockman, Reagan’s budget director, famously acknowledged that "supply-side economics" is simply trickle down by another name. John Kenneth Galbraith referred to this as the horse and sparrow theory: ‘If you feed the horse enough oats, some will pass through to the road for the sparrows.’" So how did trickle down work for George W. Bush?

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More on Research 2000

Tue, 29 Jun 2010 00:00:00 -0700

Daily Kos - By Kos - Jun. 29 (News Report) - I have just published a report by three statistics wizards showing, quite convincingly, that the weekly Research 2000 State of the Nation poll we ran the past year and a half was likely bunk. ... We contracted with Research 2000 to conduct polling and to provide us with the results of their surveys. Based on the report of the statisticians, it's clear that we did not get what we paid for. We were defrauded by Research 2000, and while we don't know if some or all of the data was fabricated or manipulated beyond recognition, we know we can't trust it.

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