Angels and demons
There is an old saying about people who live in glass houses not throwing stones. We should now add the Obama amendment stating that it’s an even worse idea to throw boulders….at your own house. Obama thought it was a good idea to pick a fight with Romney over Bain Capital. Even with some of his own minions telling him it was a bad idea he marched forward anyway. Okay, he picked the fight, so let the fun begin.
Let’s start with the obvious stupidity of running an ad blasting Romney for closing down a steel plant during a time period when Romney wasn’t even with Bain. Sadly for Obama it only gets worse from there. Once it was revealed that Obama himself was not only accepting campaign donations from Bain Capital, but also other private equity firms as well, the hypocrisy meter shot straight off the chart. But the worst of the worst for Obama came with the revelation of Bain’s track record during Romney’s tenure. Obama was so anxious to demonize both Romney and capitalism in general that he failed to notice that Romney had a 78% success rate in procuring and then reviving companies that were otherwise destined for the scrap heap.
Just like the case with oil speculators, most people don’t understand the vital role that equity firms like Bain Capital play. People hear of the enormous gains that such companies realize at times while ignoring the enormous risk and losses that these same companies also realize at other times. Contrary to popular belief, companies like Bain don’t make big bucks by raiding companies and then closing them down. They make their money by purchasing high risk companies at fire sale prices that are otherwise failing and then attempt to turn them around. If they are successful they stand to make big bucks (i.e. Staples and Sports Authority), and if they aren’t successful they do exactly what would have happened anyway and close them down. Think of it as a Dr. who gives his patient one last heroic shot at survival. Sometimes the patient lives, sometimes they don’t, but one thing is for certain. If there weren’t those like Bain out there who were willing to take on such risks, the death rate of those companies would be at 100%. By picking such a stupid fight Obama unknowingly turned what he thought was a demon into an angel of mercy.