Monday, January 16, 2012

PEU Rick Perry Catered to Vulture Capitalist

Texas Governor Rick Perry attacked Presidential hopeful Mitt Romney in South Carolina by saying:

“I know the difference between venture capital[ism] and vulture capitalism.  Venture capitalism is a good thing, comes in, gives that gap funding to help these companies get off and get started creating jobs, and work. But Mitt Romney and Bain Capital were involved with what I call vulture capitalism." 
Perry stuck to his "vulture capitalism" guns on CNN:  Chron reported:

Perry said as governor of Texas he had created one million jobs rather than “destructing businesses or destructing jobs” the way Romney had with his investment firm. 
What does Rick Perry call a six year $35 million incentive, intended to produce 3,000 new jobs, which resulted in the elimination of 35 jobs?  How would Rick Perry characterize a company that failed to deliver promised jobs from closing plants in Tennessee and Florida, instead keeping those plants open?  The nondelivery came from a vulture capitalist, a private equity firm like Bain Capital.

Governor Perry should know, given he executed the $35 million Texas Infrastructure Fund grant for The Carlyle Group's Vought Aircraft Industries.  Carlyle briefly dangled jobs from Vought's Boeing 787 Dreamliner work, but decided South Carolina's $65 million incentive and Senator Lindsey Graham's good graces outweighed Texas's deal.

The end result of Rick Perry's work?  Private equity underwriter (PEU), The Carlyle Group, had $35 million in non-debt, non-equity capital to use for six years.  When it became time to pay the piper, Perry renegotiated Vought's TEF deal in secret.  He did so right before Carlyle sold Vought to Triumph. None of the proceeds were used to repay Texas taxpayers.

Rick Perry gave free money to vulture capitalist Carlyle.  The Carlyle Group's recent dealings with Brintons reveals much.  Carlyle used discounted debt to takeover Bintons, a back door move.  It shed Brintons' pension, cut jobs and sent production to China.

Perry's political lingo is just that, a ploy to garner votes..  Rick Perry loves PEU's.  He'd love a trillion dollar federal budget, all the more money to send to his friends and backers.  .