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  1. #41  
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    Quote Originally Posted by Zeus View Post
    Romney is good at stripping entities apart and selling off the dead weight and reassembling the the remainder.
    Sounds like a hell of a good plan for the federal government, if you ask me. Spin off a few "divisions" and sell them for cash, come out with a much leaner, more efficient organization.

    I could go for that.
    Olde-style, states' rights conservative. Ask if this concept confuses you.
     

  2. #42  
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    Quote Originally Posted by Zeus View Post
    Romney is good at stripping entities apart and selling off the dead weight and reassembling the the remainder.
    Well, technically speaking he used LBO mechanics to act as a tax shield for the money he borrowed to purchase the company. Typically you can buy a company for far less than market value due to the tax shield properties. He then saddled the company with the debt, and after selling the assets used the difference as his paycheck.

    Applied to the USA it would look like this:

    Romney borrows money from the IMF/World Bank to bailout the USA. The money he borrows is in US dollars, and negotiates a deal so he pays no interest rates on the money. So lets say he buys back our debt from China with this borrowed money. He then adds the money he borrowed from the IMF to the US national debt, and walks away with a paycheck which represents the money we "saved" by not paying interest.

    If it sounds like a shell game, it's because it is. LBOs are playing shell games with regulations to buy a company for less than the value of the sum of the assets. Then you saddle the company with the debt that was used to purchase it. That's what Romney is good at.
    Last edited by m00; 03-11-2012 at 12:14 AM.
     

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