Mitt Romney and the 47% who support Obama

[Jagos]

Originally Posted by Ecks

holy shit
and people were pissed at enron and the delphia thing (three people took $1 billion dollars, or something, lewis black did a bit on it a few years back)

why isn't this stuff being brought to light?

like i don't already know rich people own the media and filter this shit out

This is somewhat old. I could talk about the debt creation thing more, but I've been kind of busy working on creating a technology news channel myself. What people haven't talked about is how Bain got to be this way since 1986 because of Reagan and his true belief in CEOs running the US. His wish came true with lowered tax cuts for the rich and the Two Santa Claus theory.

By 1974, Jude Wanniski had had enough. The Democrats got to play Santa Claus when they passed out Social Security and Unemployment checks – both programs of the New Deal – as well as when their "big government" projects like roads, bridges, and highways were built giving a healthy union paycheck to construction workers. They kept raising taxes on businesses and rich people to pay for things, which didn't seem to have much effect at all on working people (wages were steadily going up, in fact), and that made them seem like a party of Robin Hoods, taking from the rich to fund programs for the poor and the working class. Americans loved it. And every time Republicans railed against these programs, they lost elections.

Democrats, he said, had been able to be "Santa Clauses" by giving people things from the largesse of the federal government. Republicans could do that, too – spending could actually increase. Plus, Republicans could be double Santa Clauses by cutting people's taxes! For working people it would only be a small token – a few hundred dollars a year on average – but would be heavily marketed. And for the rich it would amount to hundreds of billions of dollars in tax cuts.

...

When Reagan rolled out Supply Side Economics in the early 80s, dramatically cutting taxes while exploding (mostly military) spending, there was a moment when it seemed to Wanniski and Laffer that all was lost. The budget deficit exploded and the country fell into a deep recession – the worst since the Great Depression – and Republicans nationwide held their collective breath. But David Stockman came up with a great new theory about what was going on – they were "starving the beast" of government by running up such huge deficits that Democrats would never, ever in the future be able to talk again about national health care or improving Social Security – and this so pleased Alan Greenspan, the Fed Chairman, that he opened the spigots of the Fed, dropping interest rates and buying government bonds, producing a nice, healthy goose to the economy. Greenspan further counseled Reagan to dramatically increase taxes on people earning under $37,800 a year by increasing the Social Security (FICA/payroll) tax, and then let the government borrow those newfound hundreds of billions of dollars off-the-books to make the deficit look better than it was.

So you have to defeat the narrative that the Republicans have been supporting for damn near 40 years now. And it's just not getting done like how FDR or JFK did it back in the day.

[Ryanderman]

Originally Posted by Odjn

No one 'bought them' as I understand it. He took out loans from investors to buy companies. He did put small of Bain's money down too, but once the companies were bought, the debt became that company's debt, not Bain's. So then the company had to pay them for those loans, often requiring that company to take out more loans or cash in extreme amounts of shares, which usually caused them to go belly up.

Here's the link to where I got that info, and the specific quote.

Thanks for that info. Clarifies some stuff I wasn't getting, and explains why what they were doing was so bad. Appreciate it.