How did Mittens make his fortune? What special skills set does he profess to have that makes him uniquely qualified to be the President of the United States? Robert Reich, Labor Secretary in the Clinton administration, explains the magic of Private Equity (vulture capitalism in Mitt’s case) in 8 easy steps.
WATCH:
- Risk other people’s money
- Buy a company to squeeze higher profits
- Cut workers, pay and benefits to squeeze higher profits out of the company
- Use company as collateral to borrow lots of money to inflate profits
- Company pays back investors immediately
- Sell company for more than they bought it for
- Equity Managers Pocket 20% of the sale even though they never risked their own money
- Equity Managers don’t risk a dime and only pay 15% capital gains tax
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[...] where are the created jobs? Robert Reich, Labor Secretary in the Clinton administration, explains the magic of Private Equity (vulture [...]