Wow, read up, they were heavily over leveraged. Very heavily. It's okay Mav. Go on back upstairs, your contribution is needed, and I do not want to throw you off your game, bruh. I sense hostility
Dude, I wrote a fucking paper on LTCM. I know 100 times more about their positions then you do. Please please stop talking about things that you are clueless on. Please.
I know, high road, but you are the one getting pissed off. Just on back upstairs, and tell Gordon I said, hello
Yes, I am sure you have. You also have a way to fix the national debt. It's okay Mav. I didn't mean to bruise your ego....yet again.
Not as different as you may think. The excessive leverage was exacerbated by the illiquidity of their chosen instruments. It was the extreme leverage that led to their undoing more than any other single factor as they prayed for reversion.
I am quite sure that Bain Capital is something different and that whole attack ad is made up. They are not Private Equity. Please enlighten us, oh great Maverick, what is Private Equity?
UniMac UniMac was a Marianna, Fla.-based laundry equipment manufacturer that had been around for more than 50 years. A former worker is quoted in the video as saying: "They pulled everybody together and told us we were being sold to Raytheon, which in turn turned out to be Bain." The worker adds that quality control was sacrificed, saying: "I just wish they'd left us alone in the early 90s... at the end they just decided to shut the doors." The reality, however, is that Raytheon (RTN) and Bain weren't the same thing. And Bain wasn't involved in the early 1990s. Raytheon agreed to purchase UniMac in 1994, and later merged it into a broader commercial laundry unit that also included facilities in Wisconsin and Kentucky. Raytheon then sold that unit four years later to Bain Capital for $358 million, alongside another private equity firm. Bain would then hold onto the company until December 2004, when it sold it to a Canadian pension system's private equity division for $450 million. The Florida plant and some others would close under the Canadian firm's stewardship, not under Bain's, in October 2005. Moreover, Romney left Bain Capital in 1999, although he retained a financial interest. The UniMac section also quotes a NY Magazine story about Romney saying that his Bain colleagues had a "high disdain" for "sloppy" American workers. It insinuates that these were Romney's Bain Capital colleagues working on UniMac, but it actually referred to Bain & Co. consultants from decades earlier. KB Toys "Romney and Bain bought the 80 year-old company in 2000." Again, Romney left Bain in 1999 and had no operational role thereafter. It is true that he remained an investor, but so did dozens of university endowments, private foundations and pension systems. None of them played a part in Bain's investment decisions or portfolio company management. The video also plays a video of Romney speaking at Emory University in 2010, and suggests that he refers to the ultimate failure of KB Toys as "creative destruction." This is taken completely out of context. Romney's Emory comment was pulled from a 45-minute interview that never once mentioned KB Toys. Instead, he was discussing broader economic productivity issues. DDI Corp. The video discusses the DDI Corp., a printed circuit board maker that Bain first acquired (alongside several other PE firms) in 1996. It suggests that "Romney and Bain" began firing DDI employees just before taking it public, including 275 Colorado workers. Again, there is a timing problem. Those Colorado employees were let go in early 2000, after Romney left Bain. The IPO also occurred after Romney had left. The filmmakers later acknowledge that Romney had left Bain prior to the IPO, but then use a 13D filing to "prove otherwise." Fortune has reviewed the filing, which does place Romney on the management committee of a Bain fund that controlled DDI shares. Bain has insisted, however, that Romney had no operational role at Bain after leaving -- with a source telling Fortune that Romney's departure for the Olympic Games was hasty, and that the fund management committee listing was just a legacy signatory role that involved no actual decision-making capabilities. More importantly, DDI didn't file for bankruptcy until two years after its IPO, and two years after Bain had already sold all of its shares. The video insinuates that Bain knew the company was in trouble when it "dumped" its shares in 2001, but gives no evidence to support its claim. It really comes back to Obama mismanagment of taxpayer funds given to companies that clearly did not have a viable business model. Now the Obama regime will approve bonuses for Solyndra employees despite the failure of the company. Obama is all about enriching his friends and political supporters also known as cronies. The Obama regime is corrupt to the core and now he is "shredding the constitution" in a blatant grab for more power. The bad business decisions Barrack Obama has foisted onto the taxpayer makes the millions upon millions of dollars spent on his vacations seem like chump change. This man is corrupt, his regime is corrupt and his hometown is corrupt beyond measure.
Ron, for the love of God, answer me this question. Why are you worried about blowing out your trading account? It has to be because you are over leveraged. And why would you be over leveraged? Because you are under capitalized. Do you disagree with this?
Yup, but Mav wrote the paper, you know, the one explaining why they could not withstand the downturn even tho they were eventually right. Most call that being overleveraged