Venture Capitalist vs the Government
By bobmnu
@bobmnu (8157)
United States
May 24, 2012 12:29pm CST
It seems that we are being told that venture capitalist are bad because they come in and destroy companies and rob them of all the money and leave them broke and the people out of work. Look at what happened to a major company in the US when the group moved in and took it over. The first thing they did was to steal the money from the people who made the company great, left them with almost nothing. Then to the backer of this group they gave the best parts of the company and eliminated whole divisions that were not as profitable. Across the country they closed small business associated with the company and left them with nothing but debt. Through legal means they made their share holders put up large amounts of money so that the few in this group would not lose anything. In the end many people who made these companies the great ones that they were lost almost everything including retirement savings so that a few could have a better life. This group did not stop there but rather continued to take shareholders money and invest in in companies that were going down so that a few investors could profit from the destruction of the company.
The problem is that this group is growing in power and continues to take and invest the shareholders moeny and the shareholders can not stop it nor can they get out and the government watch dog agencies do nothing to stop it, rather they continue to change the rules so that this group becomes more powerful.
Which major venture capitalist is this - it is not Bain nor any of the other powerful groups, in fact some of these Venture Capitalist are supporting this group. What I am talking about is the US Government and their putting money into private companies and picking winners and losers. The Major company is the Auto Industry and several of the other bail out industries. If the executives of Bain Capital were causing their share holders to back losing companies and not make money but rather to lose money how long would those executives have a job?
1 person likes this
4 responses
@thegreatdebater (7316)
• United States
25 May 12
Bob, I hate to tell you this, but the US government has been picking winners and losers in the private sector since the country was created. What do you think tax breaks are? How about our corporate tax code assisting large corporations while leaving small businesses to pay for both their own share, and that of the large corporations? How about subsidizes?
The goal of venture capital is to make money. I doesn't matter how many jobs are created, or lost. It doesn't matter what country they do business in, their only allegiance is to the almighty dollar. Mitt Romney has already shown how good he is at creating jobs when he was governor. He might be great at making money, but that doesn't mean he will be great at running a country.
@thegreatdebater (7316)
• United States
27 May 12
Deb, you really need to read some opposing opinions on what you are talking about. I have shot down your right wing talking points for years now, and you are just spewing them like all of the other UNINFORMED people out there. I am not going to waste my time proving all of your points are WRONG, you can go through all of my former post and find where I have proven all of your talking points to be WRONG!!!
@debrakcarey (19887)
• United States
25 May 12
Jeffrey Zients serves as President Obama's acting director of the Office of Management and Budget and used to be employed by Bain Capital. Obama said of him; "I'm pleased to designate Jeff Zients to lead the Office of Management and Budget. Since day one, Jeff has demonstrated superb judgment and has provided sound advice on a whole host of issues,"
He really does think we're stupid.
@peavey (16936)
• United States
24 May 12
Very good point and well written.
The United States Government has crippled an entire industry and is aiming at many more. While it decries "big business" it is the biggest business in the nation and its bullying powers are hurting our entire economy.
@debrakcarey (19887)
• United States
24 May 12
I've made the same point bobmu. The GM and Chrysler bailouts were the biggest corporate raiding in the history of America. And done illegally I might add. The unions who had bankrupted the companies gained illegally, getting preferential treatment in stock options as the company went down. Unsecured stocks owned by the unions were sold low, and the secured stocks of the private investors were sold high. Essentially putting the control of the company in the hands of those who ruined it with their demands for high wages, and cushy benefits like paying laid off workers 95% of their pre layoff wages while sitting around in 'rubber rooms' paid for by the company, eating and doing crossword puzzles while looking for 'work'.
And NOW GM is outsourcing to China? Give me a friggin break.
