Three great quotes, via Andrew Tobias.
David Stockman, Director of the Office of Management and Budget under Ronald Reagan:
"Bain’s billions of profits were not rewards for capitalist creation; they were mainly windfalls collected from gambling in markets that were rigged to rise.
"Nevertheless [he continues], Mitt Romney claims that his essential qualification to be president is grounded in his 15 years as head of Bain Capital, from 1984 through early 1999. According to the campaign’s narrative, it was then that he became immersed in the toils of business enterprise, learning along the way the true secrets of how to grow the economy and create jobs. The fact that Bain’s returns reputedly averaged more than 50 percent annually during this period is purportedly proof of the case—real-world validation that Romney not only was a striking business success but also has been uniquely trained and seasoned for the task of restarting the nation’s sputtering engines of capitalism.
Except Mitt Romney was not a businessman; he was a master financial speculator who bought, sold, flipped, and stripped businesses. He did not build enterprises the old-fashioned way—out of inspiration, perspiration, and a long slog in the free market fostering a new product, service, or process of production. Instead, he spent his 15 years raising debt in prodigious amounts on Wall Street so that Bain could purchase the pots and pans and castoffs of corporate America, leverage them to the hilt, gussy them up as reborn “roll-ups,” and then deliver them back to Wall Street for resale—the faster the better.
That is the modus operandi of the leveraged-buyout business, and in an honest free-market economy, there wouldn’t be much scope for it because it creates little of economic value. But we have a rigged system—a regime of crony capitalism—where the tax code heavily favors debt and capital gains, and the central bank purposefully enables rampant speculation by propping up the price of financial assets and battering down the cost of leveraged finance.
So the vast outpouring of LBOs in recent decades has been the consequence of bad policy, not the product of capitalist enterprise. I know this from 17 years of experience doing leveraged buyouts at one of the pioneering private-equity houses, Blackstone, and then my own firm. I know the pitfalls of private equity. The whole business was about maximizing debt, extracting cash, cutting head counts, skimping on capital spending, outsourcing production, and dressing up the deal for the earliest, highest-profit exit possible. . . .
Politico: Lobbyists Ready for a Comeback Under Romney
President Barack Obama’s gone further than any president to keep lobbyists out of the White House — even signing executive orders to do it.
But the mood on K Street is brightening.
Industry insiders believe that Mitt Romney will unshackle the revolving door and give lobbyists a shot at the government jobs their Democratic counterparts have been denied for the past four years, a dozen Republican lobbyists said in conversations with POLITICO.
I wrote in my last column about my uninsured college roommate, Scott Androes, and his battle with Stage 4 prostate cancer — and a dysfunctional American health care system. I was taken aback by how many readers were savagely unsympathetic.“Your friend made a foolish choice, and actions have consequences,” one reader said in a Twitter message.As my column noted, Scott had a midlife crisis and left his job in the pension industry to read books and play poker, surviving on part-time work (last year, he earned $13,000). To save money, he skipped health insurance.A year ago, he encountered difficulties urinating and didn’t see a doctor in part because of the cost. By the time the prostate cancer was detected, it had spread to his bones.“I blew it,” Scott told me several times. He repeatedly acknowledged that he should have bought insurance and should have seen a doctor as soon as his symptoms appeared.
That’s in part what this election is about. If President Obama is re-elected, Obamacare will stay in place and health insurance will become close to universal in 2014. In contrast, Mitt Romney has promised if elected to work to repeal Obamacare — and any American who made a bad health care decision would continue to suffer.To many of my readers, that’s fine.“Not sure why I’m to feel guilty about your friend’s problem,” Terry from Oregon wrote on my blog. “I take care of myself and mine, and I am not responsible for anyone else.”Bruce wrote that many people in hospitals are there because of their own poor choices: “Smoking, obesity, drugs, alcohol, noncompliance with medical advice. Extreme age and debility, patients so sick, old, demented, weak, that if families had to pay one-tenth the cost of keeping the poor souls alive, they would instantly see that it was money wasted.”That harsh view is gaining ground, particularly on the right. Pew Research Center polling has found that the proportion of Republicans who agree that “it is the responsibility of the government to take care of people who can’t take care of themselves” has slipped from 58 percent in 2007 to just 40 percent today.Let me offer two counterarguments.First, a civilized society compensates for the human propensity to screw up. That’s why we have single-payer firefighters and police officers. That’s why we require seat belts. When someone who has been speeding gets in a car accident, the 911 operator doesn’t sneer: “You were irresponsible, so figure out your own way to the hospital” — and hang up.To err is human, but so is to forgive. Living in a community means being interconnected in myriad ways — including by empathy. To feel undiminished by the deaths of those around us isn’t heroic Ayn Rand individualism. It’s sociopathic. Compassion isn’t a sign of weakness, but of civilization. [Okay, my emphasis.]My second argument is that if you object to Obamacare because you don’t want to pay Scott’s medical bills, you’re a sucker. You’re already paying those bills. Because Scott wasn’t insured and didn’t get basic preventive care, he accumulated $550,000 in bills at Seattle’s Swedish Medical Center, which treated him as a charity case. We’re all paying for that.Scott and I spoke on Sunday morning about whether his story might move some critics of health care reform. He was weakening and mused that he probably didn’t have long. A few hours later, Scott slipped into a coma. He died Monday morning.We can’t be certain that the cancer would have been found earlier, when it was more treatable, if Scott had been insured. But it’s a reasonable bet. Researchers have estimated that one American dies every 20 minutes for lack of health insurance.In other countries, I’ve covered massacres, wars, famines and genocides, and they’re heart-rending because they’re so unnecessary and arbitrary. Those massacred in the Darfur genocide in Sudan might be alive if they had been born in Britain.