Saturday, July 14, 2012

Obama is the Possible Felon - Not Romney

One of Obama's minions called Romney a possible felon because of his dealing with Bain and possible mis-statements he made about his dealing with Bain, which Romney denies. Obama immediately jumped on Romney also.

Obama is at the point where he will do anything to distract the voters from his overall terrible record. I have in the past listed a FEW of the under-handed and most probable or possible illegal deals Obama has made before and while in any office or position of leadership. In the last year, he has stepped up the pace.

A big issue has been made by Obama and some Democrats; I say some because some Democrats and possibly most Democrats believe in venture capitalism. In Peoria politics many loans (venture capital) are made using taxpayer dollars. Peoria County has what they call Gap Loans. I'm not sure what the City calls their taxpayer loan system. Both both county and city lend to most projects that come hat in hand.

Years ago I helped stop the request to GIVE $8,000,000 to Van Mauer to locate in the Shoppes. I was very unsuccessful in stopping both the City and The County from lending $6,000,000 or so to the now bankrupt Firefly.

Other relatively recent loans totaling more than a million dollars were made by both entities to Globe Energy, In-Play, and River Station.

All are bankrupt.

What is the big difference?

Bain was lending money mainly to EXISTING COMPANIES with mainly PRIVATE capital investments. Any loans the City or County make is with TAXPAYERS money. In either case, if the firm makes it, it a financial gain to the private sector and a public gain to the community. Both entities try to help the capitalists to make a profit and stay in business.

Both the City and the County has some successs, Palace Skating Rink comes to mind. The private sector like Bain is prepared to take losses which is typical of all private Venture Capitalists. They are part of the system that has made America great. Many who don't succeed but enough that do succeed to make the profits to support all all employees and pay taxes to government bodies.

One large difference is that the private venture capitalists have many financial experts on board to help them make the loan decision. In some cases, if local labor is not competitive or cooperative, some of the business may NEED to be outsourced. Gap and City loans also, as there is not enough staff to even monitor what the companies do that they have invested in.

Quite different in the private sector is that they monitor their investments constantly.

By contrast, the current combined boards, City and County, have a committee that is qualified to make loans. They depend on the recommendation of the bank or banks that are making the loan.

The problem with this? The loan officers of the banks only loan what they believe they can recoup in event of bankruptcy. They are in #1 position to get all or most of their money bank. Leasing companies are next in line and in all loans, the City and County is last. In the above mentioned bankruptcies, neither the City or the County re-coup any of the taxpayer money they invested.

1 comment:

Merle Widmer said...

Bad management decisions are often made in the companies Bain and other try to save these companies from bankruptcies. It is certainly not all the unions fault.