The problem with private equity is that the process results in borrowing substantial amounts of money with investors providing a small amount of money to buy a company. Why is this a problem? Because the company is now responsible for the debt and if an otherwise healthy company cannot support that debt burden, it collapses while the equity investors, who have usually gotten a big return on their investment have no suffering at all.
So yes, Mitt Romney recognized in an interview with Bloomberg that yes, sometimes the deals don’t work out.
Romney also reflected on the Bain investments that didn’t pan out and the people who lost their jobs because of it.
“I have never believed in my own ability to succeed at everything,” he said. “I recognize I’m a human being like everybody else, and I make mistakes, and fall short time and again. That being said, I will work as hard as I can to deliver the results which people entrust me to achieve.”
So yes, he does make mistakes, but the tragedy is the cost of those mistakes are borne by ordinary workers who lose their jobs. And notice in the quote about how he works hard to deliver results for the people who have 'entrusted' him. Those people are investors, not employees or even the company itself. There is no greater clarity of purpose in Mitt Romney’s business career than the above statement.
And Mr. Romney continues to lose the campaign battle over his taxes.
Bloomberg asked Romney whether, if he was investing in a company, he would want to see more than two years of financial reports, likening that process to the American people electing a president. But Romney suggested the standards aren’t the same for people and businesses.
“I’m not a business,” he said. “We have a process in this country, which was established by law, which provides for the transparency which candidates are required to meet. I have met with that requirement with full financial disclosure of all my investments, but in addition have provided and will provide a full two years of tax returns.”
The political tone deafness of the Romney campaign continues. This Forum has said many times that Mr. Obama cannot win this election, but that Mr. Romney can lose it. He is trying awfully hard to do just that. For Mitt the favorable(?) publicity from a VP pick of Paul Ryan is now fading from an abortion rights issue but at least from his perspective that will hopefully remove his taxes from the front pages. Yes for Mitt an ugly controversy over rape is a good thing for his candidacy since it takes attention away from the fact that he pays a very low tax rates and wants to cut even that low rate.