Archive for May, 2012

IS PRIVATE EQUITY THE RIGHT JOB CREATION TRAINING FOR A PRESIDENT?

Thursday, May 31st, 2012

There have been repeated public assertions by Mitt Romney in the past few months and by his campaign recently, that successful experience in leading a private equity firm is a very good indicator of ability to create jobs once elected as President. That this is a misleading conclusion has been pointed out of late. A recent article in the NY Times by Ashley Parker states “the driving force of private equity is to create profits for investors, and while job creation may be a happy byproduct of corporate turnarounds, it is never the stated goal, and jobs cuts are [also]very often a consequence”.1 In a recent oped piece, Steven Rattner claimed that President Obama set the right tone on this argument and ongoing very public discussion in his statement on 5/21/12. Rattner pointed out Mr. Obama emphasized that he wasn’t attacking private equity, but was questioning Mitt Romney’s Bain Capital credentials to be job-creator-in-chief. Mr. Rattner further stated that, in his opinion, “adding jobs was never Mitt Romney’s private sector agenda, and it’s appropriate to question his ability to do so”2

IPPA feels that managerial skills, such as running a private equity company, may not be the most important qualification to be a successful president. Just as important and perhaps more so would be the humaneness, experience and wisdom required to understand the sacrifices and needs as well and the policies that will be necessary to support all segments of our population; the underprivileged and the middle class as well as the most financially successful among us.

Notes:
1. Parker, Ashley, Both Campaigns Seize on Romney’s Years at Bain. NY Times 5/25/12
2. Rattner, Steven, Tall Tales About Private Equity. oped NYTimes, 5/22/12

UNFAIR AND DRACONIAN HOUSE REPUBLICAN BUDGET

Thursday, May 17th, 2012

“Asks more from those who have less and less from those that have more” as stated by Steny H. Hoyer the No.2 House Democrat.1

As reported in the New York Times on 5/11/12 the House voted to shelter the $55 million automatic cuts for the Pentagon as agreed to in last year’s contentious debt ceiling deal. This continued the Republican ideologic strategy to demolish vital social programs for the less fortunate while at the same time preserving military budgets and what many feel are unjustifiably low tax rates for the very richest among us.2
Of the total $310 million in domestic cuts almost one-third directly affects programs that serve moderate and low income people. (more…)

LOW AND MIDDLE INCOME CUSTOMERS SHOULD BEWARE OF BIG BANKS CHASING HIGHER FEES: ??Consumer Protection to the Rescue

Tuesday, May 8th, 2012

There was a recent report about some large global banks trying to steer or entice low and middle income customers, who do not normally use banks, into relatively expensive products. This has been described as a potential $ 45 Million market. These banks are responding to billions of lost income due to recent regulations placing limits on interest and fees on debit and credit cards. The banks are now competing with non-banking check cashers, payday lenders and pawnshops.1

The products the banks are offering include prepaid credit cards, short term loans, money transfers as well as check cashing and payday loans which all may carry hidden high costs. (more…)