Former Massachusetts Governor Mitt Romney spent many years at Bain Capital, which specializes in “turning around” failing businesses. Bain, and companies like it, invests in firms with broken business models and balance sheets to make them solvent and profitable again by cutting costs, shedding liabilities, reworking contracts, improving productivity and revenue, and focusing on core competencies. Once the business is profitable, it often monetizes some, or all, of its stake in the revitalized company.
The U.S. government exhibits all of the traits of a failing enterprise in need of a turnaround. Expenses are out of control, insolvency is a real possibility, and current management has no idea how to right the ship.
Read Full Article »