Yes, there is no doubt that Mitt Romney is the leader of the pack of the current candidates for President of our Nation when it comes to firing workers and trashing American companies, but that doesn’t make at least 200 members of the US Congress any less guilty.

Without their participation as lawmakers and as Wall Street investors, companies like Bain Capital, American Capital Group and Kohlberg Kravis Roberts & Co. would never get away with the crimes they “legally” commit against the American people.  We need to remember that the two are a hand-in-glove relationship:  Congress and Wall Street crooks like Romney. They BOTH benefit from destroying Main Street.  If you don’t believe me go to Open Secrets and look at the increases in the net worth of Congressional members over the past three years as millions of Americans have slid off into economic oblivion.

Henry Kravis is another pig like Romney who has made billions with his private  private equity firm of Kohlberg Kravis Roberts & Co. who have over $62 billion in assets as of 2011. Kravis himself has an estimated net worth of $3.7 billion as of September 2011, ranked by Forbes as the 88th richest man in America. And he made his money just like Mitt:  with leveraged buyouts, then firing workers and selling off the companies assets.  Another Main Street demolition expert.

If Wall Street private equity firms are “the American Way” as Ron Paul and Mitt say, it seems to me that maybe Henry Kravis ought to run for president since he obviously knows the game better than Mitt. Kravis has a personal fortune of $3.7 billion to Mitt’s puny $250 billion.

And more just like Kravis and Romney are waiting in the wings from the children of the political class currently in power.

Chelsea Clinton, for example, straight out of college worked for a predatory financial corporation on wall street.  No doubt mom or pop helped to land her job with American Capital Group, an investment firm focusing on distressed securities and private equity with regional teams focusing on “opportunities” in the United States, Europe and Asia. The firm operates as both a private equity and a hedge fund.  Do you think that anyone of the three Clintons don’t know how a private equity firm makes its money?  It’s the “American Way” all right–the “American Way” for the rich.

Then there is Rick Perry’s son.  In February of 2007, Perry’s son, Griffith, went to work for UBS, one of the two largest financial firms consulting with Rick Perry over the possible sale of the Texas Lottery.

Once upon a time things were prosperous in Anytown USA.  There were many thriving businesses. Most of them provided goods and services for the people in the community and the surrounding region.  The largest employer in the community was Widget Deluxe Factory.  Widget Deluxe employed 1,500 employees—all of whom lived in Anytown.  Widget Deluxe  was a Wall Street corporation and its stock was traded on the NYSE.  The widgets that the people made were shipped to other communities where they were then assembled with other widgets.

Mary, who worked at Widget Deluxe, had her nails done every week at Sally’s Nail Salon on Main Street.  In fact, nearly all of Sally’s customers worked at Widget Deluxe.  There were other Wall street-owned businesses in Anytown.  For example there was a McDonalds with 30 employees.  Many of the  Widget Deluxe employees ate lunch there. Anytown was a bustling thriving community. And of course there were locally owned businesses as well such as Joe’s Gardening and Nursery Supplies,  and Belle’s Cafe.

Then one day, over a thousand miles away in New York City, Floyd Blankhead had a brain fart. The stench of it was still lingering as he pulled out his laptop and began to powerpoint his foul inspiration.  Floyd did not know anyone in who lived in Anytown.  In fact, it had been years since Floyd had set foot outside of Manhattan.

Later that week, following his powerpoint presentation, a board member asked:  ”But what about the people? What about the jobs that will be lost if we shut down Widget Deluxe?  After all Widget Deluxe is still operating at a profit.”

Floyd airily waved the questions aside.  ”Profits!  Pah!  What I’m talking about here is the bottom line and  eliminating thousands of dollars in labor costs. Think about the benefits that our stockholders will realize if we cut the labor force by 1,500, not to mention selling off all the fixtures and the deductions that we will receive as the property deteriorates.  The slack can be picked up by our Minneapolis and Buffalo operations.  In this economy no one is going to complain about longer hours.”

And so began the demise of Anytown USA.  Of course Sally’s Nail Salon was one of the first businesses to go after Widget Deluxe folded. Last I heard Sally had a part-time job at the local McDonalds.  A lot of folks have moved away. The few that remain don’t know what they will do when their unemployment runs out.

The millionaires and multimillionaires who got their Widget Deluxe dividend statements never had a clue at what cost.  In fact the irony of it all was that many of them didn’t even notice that the dividend was slightly more than the  payment from the last quarter.

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IfLizWereQueen

Anytown is just one example of many scams that Wall Street financial carnies have pulled and continue to pull on the American people.  They don’t give a damn about Main Street.  They live on and for the corporate bottom line.

Here is another Wall Street Scam that has destroyed thousands of USA Neighborhoods: The Scam of Making a Profit from your Losses

Indeed, the financial world of Wall Street is a true twisted Orwellian newspeak jungle where loss means profit. Buyout guys like Henry Kravis decide to buy a company. They find a company they want to buy.  It may be in your community. Their goal is to make money from the company—but not by growing the company, or by hiring more people, or by making better more competitive products. Their goal is a destructive, evil and self-serving goal—to make money for themselves and their wealthy  investors.  To heck with the people in the community.  Wall Street with the anonymity that it provides investors makes the perfect tool.

The buyout/private equity people like Kravis get some investors to put some cash down.  Then they borrow the rest from banks  When ordinary Americans buy a house or car, you have to pay back the loan and at interest rates much higher than the rich pay.  But thanks to loopholes, created with the help of millionaire members of the US Congress, the buyout guys don’t have to pay back their loans. The company they just bought is responsible for the debt—not them.

So private equity investors like Mr. Kravis and his pals  have layoffs and sell offs. [That means jobs of ordinary Americans.] The debt of the company brings other bonuses—lower taxes.  That’s right.  Same company same product.  Just less taxes. Because of all the new debt, the company gets to pay a lot less taxes  which of course means less money for schools and roads and hospitals in your community.

Then there is capital gains.  When a private equity company sells the company, after they have completely gutted it, the buyout guys take 20%. That’s called carried interest. AND the carried interest that buyout guys like Kravitz collects gets taxed at only 15%.   While people like Kravis make more than a million dollars a day, they get taxed at a lower rate than most ordinary Americans pay.

What happens to the roads and the schools in your community? As far as the rich Wall Street investors are concerned they don’t give a damn.   After all, they don’t live in your community.  They live in places like New York City and Washington D.C. They don’t give a damn.

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Now do you see why I say that if you own Wall Street stock that you are part of the problem?  It’s because you are.

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