July 11, 2012

NEVERMIND THAT NAME RECOGNITION FOR BAIN IS PROBABLY STILL UNDER 40%....:

Despite Bain Attacks, Obama Still Struggling (Josh Kraushaar, July 10, 2012, National Journal)

For all the attention paid to the effectiveness of President Obama's Bain-themed attacks, it's remarkable how Obama has been stuck right around 47 percent for a very long time.  As the Washington Post's Chris Cillizza documented, the president's team has handily outspent Romney and his allied super PACs, pouring in $91 million into eight swing states in an early spending barrage intended to make Romney seem an unacceptable challenger.  But for all that effort, the numbers haven't moved much at all: The latest ABC News/Washington Post poll out today shows the race deadlocked at 47 percent. Yesterday's USA Today/Gallup swing state poll showed Obama statistically tied with Romney, the exact same result the survey showed one month ago. 


...the bigger problem is that you're wasting time and money to explain a scandal that isn't one, 4 Pinocchios for Obama's newest anti-Romney ad (Glenn Kessler at 06:00 AM ET, 06/21/2012, Washington Post):

 The phrase "corporate raider" has a particular meaning in the world of finance. Here's the definition on Investopedia:

"An investor who buys a large number of shares in a corporation whose assets appear to be undervalued. The large share purchase would give the corporate raider significant voting rights, which could then be used to push changes in the company's leadership  and management. This would increase share value and thus generate a massive return for the raider."

In other words, this is generally an adversarial stance, in which an investor sees an undervalued asset and forces management to spin off assets, take the company private or break it up.

 In a previous life, The Fact Checker covered renowned corporate raiders such as Carl Icahn and his ilk. We also have closely studied Bain Capital and can find no examples that come close to this situation; its deals were done in close association with management. Indeed, Bain generally held onto its investments for four or five years, in contrast to the quick bust-em-ups of real corporate raiders. So calling Romney a "corporate raider" is a real stretch.

 So how does the Obama campaign justify this phrase? It cites a single Reuters story from last August, about a campaign stop in New Hampshire, written by a stringer. Buried in the article is a reference to Romney as a "former corporate raider."

 "Reuters typically refers to Romney as a 'former private equity executive' or something along those lines," said Ros Krasny, the Boston bureau chief.  "Of the hundreds of times we have referenced Romney over the past year or more, honestly, that example from [the stringer] must have just slipped through the net -- 10 months ago.

 A better source for Romney's behavior as an investor might be someone who actually worked on Wall Street, such as former Obama auto czar Steven Rattner. "Bain Capital is not now, nor has it ever been, some kind of Gordon Gekko-like, fire-breathing corporate raider that slashed and burned companies, immolating jobs wherever they appear in its path," Rattner wrote in Politico this year.

Posted by at July 11, 2012 5:20 AM
  

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