How amusing to see President Obama denigrate Mitt Romney’s role at Bain Capital, and to see these attacks enabled by the media. Even a cursory examination of Bain and other private equity firms shows us that these firms use offshore funds for US-tax-exempt investors and non-US investors. Whether you are a firefighter in Indiana, a police officer in Boston, a teacher in California, or a high school janitor in Pennsylvania, your pension invests in private equity funds established offshore.
Why do pensions invest in Bain and other private equity firms? I suggest the reason is good stewardship, as private equity investments have outpaced the Standard & Poor’s 500. Pensions, unions, endowments, and charitable organizations have been enriched, and taxpayers have been relieved of providing additional funding for public pension plans. A win-win-win for pensioners, taxpayers, and Bain. How delightfully American. And for this, the president ridicules Romney?