Thursday, January 12, 2012

Adventures in Vulture Capitalism

Kevin Drum and Reuters tell the story of one of Mitt's adventures in vulture capitalism. The CLiff Notes version:

Bain buys company pretty cheap. Has company borrow a potful of money, and uses the money to pay Bain a gigantic dividend. Company now owes so much it can't pay or continue in business. Bankruptcy declared, workers are laid off, creditors, including the workers pension funds, are stiffed. All made possible by that miracle of modern capitalism, the limited liability corporation.

Details at link above.