Banksters: they're Republican-backed capitalists using the Bain Capital trick to destroy profitable companies, or US cities, for their profit.
Mitt Romney's Bain Capital prospered by feeding on profitable companies. First they'd borrow a billion dollars, then use the money to buy a company. The acquired company was handed the debt for it's own acquisition. In order to pay, it's forced to sell off assets, fire workers, cut paychecks and strip employee pension funds. If the company goes bankrupt, Bain still profited from fees associated with the debt payment. This diabolical technique is now being applied to liquidate Detroit for private profit. If Republicans get their way, it's the future for the entire country.
Mitt Romney ... perfected the type of glorified extortion tactics Rick Snyder and Kevin Orr are using right now rob [Detroit] city workers of their hard-earned pension plans.
When Mitt was running Bain during the 1980s and 1990s, the company made its money by forcing companies into debt and then robbing them blind for every last bit of cash they had.
Bain would take out a loan for, say, a billion dollars. It would then use that billion dollar loan - its leverage - to buy a company. But instead of paying back that billion dollar loan itself, Bain would dump it on the company it just bought. In other words, Bain would make the company it just bought pay for its own acquisition.
And where would that company get the billion dollars to do that? ... that money came from stripping the company of its assets and converting them into cash.
It came from taking employee assets - like pensions and decent paychecks - and converting them into cash to pay for the debt, and even converting future assets - the viability of the company itself - into cash to pay for the debt.
It came from gutting retirement funds and firing workers.
In the end, Bain not only ended up with the company, but also got rich off the fees associated with the entire debt repayment process.
Just as Bain Capital trapped companies with massive debt obligations, so too did Wall Street trap Detroit with its risky debt schemes.
... the fire sale of Detroit is just a preview of what Republicans will do when they force their privatization fantasies on the rest of the country.
This practice destroys so many lives and I don't see the benefactors giving much attention to the desolation they leave behind.
"Like one of Bain’s acquisitions , Detroit’s will be sold at auction to pay off debts created by banksters.
"But It’s not public just workers who will suffer - the whole city is on the chopping block. Kevyn Orr wants the city’s art collection sold off. The water department might be put on the market. And to top it all off, right-wing billionaires are trying to buy Belle Isle Park and turn it into some sort of libertarian-gambling paradise.
"The privatization of Detroit is about to begin, and there’s no way the billionaire class is going to miss it."
~ Thom Hartmann