I sat in amazement, and a bit of disgust, as Sean Hannity gave two segments of his show over to a vindictive attack on Mitt Romney by Newt Gingrich. Maybe it was Hannity's way of contributing to the Gingrich campaign. In any event Gingrich missed his target, instead smearing capitalism itself. I don't find a transcript of last night's show, but Gingrich reiterated things he'd said earlier.
Newt Gingrich took Mitt Romney to task Monday for his role with Bain Capital, arguing that the former Massachusetts governor “looted the companies [and] left people unemployed” when the venture firm took control.
“They apparently looted the companies, left people unemployed and walked off with millions of dollars,” Gingrich said on NBC’s “Today” show. “Look, I’m for capitalism, I’m for people who go in to save a company … if somebody comes in takes all the money out of your company, and then leaves you bankrupt while they go off with millions, that’s not traditional capitalism.”
I suspect the former history teacher, congressman, lobbyist Gingrich wouldn't know traditional capitalism if it bit him on the ass. The facts of Romney's tenure are Bain Capital are much different from picture presented by the former house speaker.
The Wall Street Journal, aiming for a comprehensive assessment, examined 77 businesses Bain invested in while Mr. Romney led the firm from its 1984 start until early 1999, to see how they fared during Bain's involvement and shortly afterward.
Among the findings: 22% either filed for bankruptcy reorganization or closed their doors by the end of the eighth year after Bain first invested, sometimes with substantial job losses. An additional 8% ran into so much trouble that all of the money Bain invested was lost.
Another finding was that Bain produced stellar returns for its investors—yet the bulk of these came from just a small number of its investments. Ten deals produced more than 70% of the dollar gains.
With Staples, Dominos, and Sports Authority among the winners, it's easy to see how Bain Capital could make so much money. At the same time Bain's investment strategy explains why there might be a higher than average failure rate.
Asked in an interview about Bain's bankruptcy and failure rate, Mr. Romney said that in buyout deals, "our orientation was by and large to acquire businesses that were out of favor and in some cases in trouble." He added that Bain wasn't the type of firm that stripped companies and fired workers, but instead, "our approach was to try to build a business. We were not always successful."
Apparently Gingrich really does not understand how private enterprise works, and it turns out he, rather than Romney, is the man who will say anything to get himself elected. It's gets him in trouble sometimes. Last may after trashing Paul Ryan's budget plan as right wing social engineering, he got some unexpected feedback from an Iowa voter.
As he was getting ready to leave a speaking engagement Dubuque resident Russell Fuhrman approached him in the lobby of the Holiday Inn:
“Get out now before you make a bigger fool of yourself,” Fuhrman said directly to Gingrich.
Gingrich, visibly stunned, quickly moved forward to talk with other guests.
Fuhrman told The Register afterward that he just happened to be at the hotel. He said he’s upset with Gingrich’s disagreements with parts of the House Republican Medicare reform plan.
Fuhrman said he’s a solid Republican but that Ginrich “is a jerk.”
“I’m a strong Republican but he’s an embarrassment to our party,” Fuhrman said.
Gingrich's lip might get into even more trouble than merely embarrassment, according to Ross Kaminsky of the American Spectator.
I've never seen a baseball player get three strikes on one pitch, but former Speaker of the House Newt Gingrich just accomplished the political equivalent. During a Sunday morning Republican debate in New Hampshire, Gingrich suggested that a Super PAC supporting him will be attacking former Massachusetts governor and venture capitalist Mitt Romney's business history.
Strike one: As Quin Hillyer notes, Gingrich may have inadvertently tipped his hand exposing illegal coordination between his campaign and a PAC.
Strike two: Regardless of the impact of criticisms by Newt-backers on Romney, Newt has shown himself to be too bitter, petulant, and vengeful -- in short, too immature -- to be a serious candidate for the presidency.
And -- the most important and least discussed -- strike three: The PAC's impending assault combined with Gingrich's words during Saturday morning's debate that "I think it's a legitimate part of the debate to say OK on balance are people better off by this particular style of investment?" show less an attack on Romney than attack on capitalism itself, something that should be anathema to a self-described "Reagan conservative."
Gingrich is the loose cannon who proves himself to be guilty of the charges he brings against Mitt Romney. That is, he'll say anything to get elected.
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