Open Thread: In Defense of Private Equity
Since Mitt Romney seems rather unable to mount an appropriate defense of private equity and its importance to capitalism, Wall Street Journal columnist Daniel Henninger stepped up to the task with an important piece today on why leveraged buyout firms like Romney's Bain Capital played a critical role for the American economy in the 1980s, one that helped the U.S. avoid the moribund state of affairs that's plagued Europe ever since. The far left (whose goal is to Eurofy this country) has never gotten over this:
Not only did Bain Capital save America, but no matter what turn Mitt Romney's political career takes, Bain Capital may stand as the best of Mr. Romney's lifetime contributions to the nation's economic well-being. If only he'd tell the story.
We are of course putting forth "Bain Capital" as not merely the Romney private-equity house but as the stand-in for the period of American economic history that ran from 1980 to 1989. Back then it was called the Greed Decade, with asset-stripping barbarians at the gate. Virtually everything about this popular stereotype is wrong. Properly understood, the 1980s, including Bain, were the remarkable years when an ever-resilient America found a way to save itself from becoming what Europe is now—a global has-been.
After centuries of First World status—and all the perquisites of prestige and power that came with it—Europe is watching its economic status slide inexorably toward new national powers in the East and elsewhere. Because of the modernizing change that Bain and others like it forced on U.S. corporations in the 1980s, we are not fading. Not yet.
Standard & Poor's credit downgrades aren't the biggest news about Europe's fallen status. A larger historic change became clear in the first two weeks of 2012, as national treasuries brought sovereign debt issues to market. The new world order was made plain in a Jan. 12 Wall Street Journal headline: "Reversal of Fortune in Debt Market." The story told how global investors who routinely bought the debt of Italy or Spain were now buying the 25- and 30-year bonds of Indonesia, Brazil, the Philippines, South Africa and other so-called "emerging market" nations.
Pimco global fund manager Curtis Mewbourne was explicit about the changing of the global guard in Barron's this past weekend: "There are a couple of very important changes going on. One, which is pretty broadly accepted, is that we are seeing a very significant shift of economic importance, away from the developed economies into the developing economies."
Read through S&P's justification for last week's downgrades of nine European countries. Along with the expected dumping on those countries' fiscal profligacy, one finds as well a blunt recognition of Europe's moribund "fundamentals," meaning their ability to produce "strong and consistent" economic growth.
Given that it's possible to mount such a solid defense of Romney's time at Bain, is it concerning that he's failed to mount a sufficient defense of himself? Or is he mounting it but it's just not getting covered sufficiently?
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Comments
Newt? Open marriage?
Submitted by bkeyser on Thu, 01/19/2012 - 11:46am.
Are we buying this claim?
Perry's out. Santorum is back-handed by the Iowa GOP. (They've lost all rights to the "first in the nation" caucus crap, in my view. Despicable pro-Romney spinning on their part today.) Paul, with all his supposed moneybomb money, isn't campaigning, and Romney's being chastised for being a law-biding taxpayer. (Can't say the same thing for the Treasury Secretary.)
Biden cheers on the San Francisco Giants in the run-up to the NFC Championship Game.
Obama kills keystone per the progressive script written the day the 60-day decision requirement was announced.
Debate tonight. Again. But only four podiums now.
Lot's going on.
Meanwhile
Submitted by jon_torlin on Thu, 01/19/2012 - 1:48pm.
The rest of the world's going to crap.
-Neo-racist conservative Jon
⇒ Newt's Open Marriage Request
Submitted by Cool Arrow on Thu, 01/19/2012 - 2:02pm.
Megyn Kelly just played the clip.
He's toast. He should have had an open marriage with Larry Sinclair. That slides like Teflon. (that didn't sound right, did it?)
Keystone already has a pipeline crossing the Ogallala Aquifier
Submitted by upcountrywater on Thu, 01/19/2012 - 2:11pm.
The pdf view of this map is an eye opener.
Not to mention 10,000 holes punched through it to get the natural gas.
You Didn't Build That.
Wow, ucw
Submitted by bkeyser on Thu, 01/19/2012 - 3:56pm.
I heard Dr. K mention something about 25000 miles of pipeline already in place last night. It seems people tend to forget that the natural gas they burn through their stove doesn't magically arrive -it's actually PIPED underground from a distribution point.
Maybe we should ship crude on high speed rail instead. It would make progressive's heads spin.
Newt to get nuked tonight
Submitted by Galvanic on Thu, 01/19/2012 - 11:53am.
It appears that ABC will air its interview with the first Mrs. Gingrich tonight on Nightline. She will reportedly state that during the marriage, he told her that he wanted an "open marriage." Considering his track record on his first two marriages, it appears that he practiced an open marriage whether his wife agreed to it or not.
We've been discussing on NB the baggage that Gingrich brings to his candidacy. This is certainly part of it.
Meanwhile, Gingrich is desperately attacking Romney and even Santorum to remain even remotely viable in the race.
Newt needs to either take it or leave.
Submitted by c5then on Thu, 01/19/2012 - 12:21pm.
Does this surprize anybody? I only wonder how much she is getting from ABC.
Meanwhile we know virtually nothing about the college years of Barrack H. Obama. His time at Occidental College, at Columbia and at Harvard are virtual balck holes in his life story.
I think Newt is a smart guy and I like some of his ideas, but he will not get nominated because of his baggage (yes, it's not fair). He will however, I think, make a very nice Cabinet Secretary for the next President's administration. If he stops lashing out and trying to save his campaign at any cost, that is.
Madison and Jefferson and Franklin built a Republic - Roberts killed it!
He's toast
Submitted by Galvanic on Thu, 01/19/2012 - 4:27pm.
I must correct my initial post: Marianne is Wife #2.
Excerpts from the ABC interview have been posted on their site. It's ugly.
And since Wife #3 Callista -- the potential First Lady -- is the third party in Newt's unilaterally open marriage, it's going to get increasingly uncomfortable for her.
Appropriate or not, the big question will be, "Do you and Newt have an open marriage?" Ouch.
And considering that Gingrich has been throwing bombs at fellow Republicans, I don't expect any Republicans with common sense to rush to his defense -- I say common sense because Perry is apparently endorsing Gingrich.
It is NOT that they haven't gotten over it
Submitted by c5then on Thu, 01/19/2012 - 12:13pm.
It's that the far left just don't agree with the whole private, free market principle. They believe that smart (elite) educated people can make better, smarter and more beneficial decisions than a bunch of random "greedy" capitalists. This is why EVERY socialist/communist government has a Central Planning authority. It is this authority that actually runs the country because every necessary decision stems from their long-term plans. Regardless of the fact that they cannot possibly predict the future and so their plans are never fullfilled and are always in need of adjustment and modification.
Von Hayek writes about this issue in his famous book "The Road to Serfdom". He never uses the terms socialism or communism. He simply calls them planners. It is a very powerful philosophy that plays on the ego and seems to be self-evident if you do not take into account human nature, or delude yourself into thinking that human nature is basically good and altruistic at it's core. Anyone who realizes the fallacy of this, will easily be able to understand why capitalism and the free market will always succeed where central planning fails. It is not because each individual will always make the right decision, but that each individual making the decision that is right for them (the left calls this selfish) aggregated up into the millions and tens of millions in a society will benefit that society and over time will create a better society.
Simply compare the 1800's in the United States to the 1900's in the Soviet Union. Keep in mind that the US started with nothing and had to produce and build it all where the USSR started with the wealth and structure from the Tsar's monarchy.
Madison and Jefferson and Franklin built a Republic - Roberts killed it!
Romney's problem.
Submitted by Newsbubba on Thu, 01/19/2012 - 12:13pm.
The fact that Romney can't mount a "defense" of private equity funds is Romney's problem! He actully can't seem to mount a defense of anything when he is attacked. I think it's his desire to not piss anyone off.
He needs to get the hell over it, and quit worrying about stepping on toes.
newsbubba,
Submitted by Agnostic on Thu, 01/19/2012 - 1:13pm.
Another problem for Romney is that since they don't teach economic anymore (at least not widely or well) most people don't understand it when he does defend himself. Also, the media is more than happy to obfuscate when it comes to explanations but pile on with the socialist slogans.
The documentary on Bain that
Submitted by ricklail on Thu, 01/19/2012 - 1:25pm.
The documentary on Bain that newt is showing is BS. Megan Kelly had 2 people on yesterday that had no idea who Bain was and they were in the documentary. More
ricklail
Submitted by Agnostic on Thu, 01/19/2012 - 2:04pm.
Technically it is the C-PAC but six-of-one - blah, blah, blah
If the liberals get there way they would play this movie in what passes for economics and the kids can walk down the hall to watch the Inconvenient Truth in 'Science' class.
Private equity explanation is easy!
Submitted by Newsbubba on Thu, 01/19/2012 - 3:13pm.
Private equity is the use of ones OWN money to successfully do what that RBFSOB president of ours has unsuccessfully attempted to do with our tax dollars!
If the private equity fund loses money, it is THEIR loss. When Obama loses money, it is OUR frigging money and OUR loss!
What's so G@d damned hard about that?
Romney needs to get his a$$ in gear if he is going to win this thing.
newsbubba,
Submitted by Agnostic on Thu, 01/19/2012 - 3:19pm.
Most people wouldn't invest without retirement plans put together for them. Media denigrates the successful. Schools don't teach economics but push 'fairness' through various attitudes.
Keeping this in mind, how well do you think your explanation would be received?
However, you are correct it isn't that difficult. For election purposes the media will make sure the Rubik's cube was simple by comparison.
Open marriage?
Submitted by Order270 on Thu, 01/19/2012 - 1:18pm.
Is that all you got? Yawn. Unfortunately, people are buying into these Slander Politics that the State Sponsored Press is slinging. I could care less that Newt probably has enough baggage to ground a 747. None of it is any worse than the current state of affairs in this country in economical, theological, and ideological terms.
This country was built on the American Spirit (in spite of government).
Beckel admits the truth
Submitted by ricklail on Thu, 01/19/2012 - 1:36pm.
Beckel admits that liberals made a terrible mistake on welfare and public housing. We knew this for many years they had created a dependent society.
⇒ Wasn't that a hoot, Rick?
Submitted by Cool Arrow on Thu, 01/19/2012 - 1:44pm.
I tried to get NB to post something about that last night. I was so stunned yesterday evening I had to play it back numerous times to make sure I was hearing him right.
We need more liberals willing to cop to their mistakes, even if it's couched within an excuse that they "did it for the right reasons".
We know better, of course. The liberal effort paid off exactly as they planned. Moynihan got yanked back into line years ago over just such a declaration as Beckel made.
But for now, I've moved Beckel up just a notch on the respect-o-meter.
Context is key
Submitted by Agnostic on Thu, 01/19/2012 - 2:36pm.
spin or silence will be the response from the media:
Uka gave a teary confession as his Frankfurt state court trial opened in August, saying that the night before the attack he had seen a video on Facebook that purported to show American soldiers raping a teenage Muslim girl. It turned out to be a scene from the 2007 Brian De Palma anti-war film "Redacted," taken out of context.
At least he didn't put 'cross-hairs' on a generic political map.
Disgusting Planned Parenthood Attempt
Submitted by Blonde on Thu, 01/19/2012 - 3:24pm.
.....to use Tim Tebow's "story" for their own nefarious ends.
Beyond Tebowmania: Giving Women a Choice
I think we found mamabear's real identity. Only a liberal hypocrite would stoop so low.
Handy Reference Guide to Obama's Gaffes and Goofs ~ Currently Numbering 200 (and Counting)
Oh my Blonde*
Submitted by cajun2 on Thu, 01/19/2012 - 8:39pm.
That is disgusting. And if anyone is stupid enough to believe PP has women's rights as their priority, just learned that PP is opening clinics in AFRICA!..Get the picture?
Discussion with an OB/GYN colleague.
Submitted by drsamherman on Fri, 01/20/2012 - 1:16am.
My old friend is a very devout Catholic and we actually attend the same church. He asked me the other day if I had heard about Planned Parenthood's expansion into Africa and we discussed the topic in our Monday morning men's bible class. We both had a few questions about how PP plans on opening these clinics, considering most of the African nations have very strong anti-abortion religious majorities, and their governments are reflective of those values. The discussion spilled over into the entire class, and our priest offered a very interesting perspective. He talked about the Vatican's missions in Africa, and how the Christian countries are very supportive of the assistance they receive. He also talked about how some of the Muslim majority countries in sub-Saharan Africa are also open to missionaries because they emphasize assistance to the citizens that they cannot afford because of their economic circumstances. It appears the Vatican is planning an all-out stealth campaign to reach out to those governments where PP plans on expanding, and that local missionaries of all religions are gearing up to deal with the onslaught of what they consider decayed American values reaching into their societies. Warmed my heart to hear that the Vatican is finally fighting back in some measure. Locally, my OB/GYN colleague is putting pressure on the one hospital where he practices to adopt a non-abortion policy because it is a Catholic sponsored institution but has no formal declaration by its governing board against the practice. Knowing how influential that gentle and wonderful man is, he will have the board kicking out the PP representative who tried to lobby the hospital CEO a few weeks past. Keep you updated. Wars like this are never won on a large scale basis, they are won on local victories collectively.
President Downgrade is doing
Submitted by Scuba Dude on Thu, 01/19/2012 - 3:28pm.
President Downgrade is doing something here in NYC that only occurs during the Holiday Season (between Thanksgiving and New Years) and the yearly get together at the U.N.
He has created a gridlock alert day today!!!!
He is doing at least 5 or 6 fundraising events here for his campaign (like he ever stopped campaigning since he took office).
How many 1%'rs is he glad handing today? Will he make an appearance at Zuccoti Park (HA!!!!!).
Here is hoping that he does not make my commute home any longer than it should be.
Grumpy?
Submitted by ricklail on Thu, 01/19/2012 - 4:51pm.
Does anyone know what has happened to Grumpy? I am missing his insights on the debates.
He posted one for the last
Submitted by Scuba Dude on Thu, 01/19/2012 - 4:59pm.
He posted one for the last debate Rick. Check this link. http://newsbusters.org/blogs/nb-staff/2012/01/16/nb-chat-gop-debate-sout...
Obama at Disney
Submitted by bkeyser on Thu, 01/19/2012 - 6:44pm.
Seriously, it doesn't get any easier than this.
OMO, BK!
Submitted by Blonde on Thu, 01/19/2012 - 7:54pm.
That one did kind of write itself.
Dumbo does Disney.
Handy Reference Guide to Obama's Gaffes and Goofs ~ Currently Numbering 200 (and Counting)
⇒ Much too easy
Submitted by Cool Arrow on Fri, 01/20/2012 - 12:44pm.
He was at Disney to express his concern that Mother Duck might get punished with an ugly baby.
On a sad note, Dumbo was was ridiculed by Wanda Sykes for his "small ears".
Another example of Obama's Foreign Affairs Mastery
Submitted by Agnostic on Fri, 01/20/2012 - 12:35pm.
Muslims in Egypt Burn Christian Homes and Shops, Attack Church
The Arab Spring will not be tied to this administration by the people who write history for the class rooms or by our media but the death total of the event will be staggering by the time this stage of the Caliphate is complete.
Florida getting what it deserves
Submitted by Agnostic on Fri, 01/20/2012 - 1:01pm.
You host the Republican convention and you are going to get run down by the media: Half of the 10 most stressful cities to live in are in Florida. At number one is an area that I lived in for longer than I would care to admit and I found to be one of the most relaxing places I've ever lived (except for the occasional tourist that would get under my skin). One stat stands out in that in every Florida city the number of cloudy days is well over a hundred. That is absurd.
However, if Florida ever host the Democrat convention I'm sure that it will be displayed as a truly wonderful place to live.