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The public has recognized that Corporate, Chamber of Commerce Republicans,
and Wall Street Democrats
are the same party, and serve the same constituency,
and it’s NOT THEM.

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Thursday, June 21, 2012

Headline, Washington Post Fact Checker: "4 Pinocchios for Obama’s newest anti-Romney ad"





“Running for governor, Mitt Romney campaigned as a job creator. But as a corporate raider, he shipped jobs to China and Mexico. As governor, he did the same thing: Outsourcing state jobs to India.”
— Voiceover of new Barack Obama campaign ad

The Obama campaign apparently loves to ding former Massachusetts governor Mitt Romney with the charge of “outsourcing.” On several occasions, we have faulted the campaign for its claims, apparently to little avail.
Now, all of the claims have been combined in one 30-second ad, with the added incendiary charge that Romney was a “corporate raider.” Let’s look anew at this material. 

 The phrase “corporate raider” has a particular meaning in the world of finance. Here’s the definition on Investopedia:
“An investor who buys a large number of shares in a corporation whose assets appear to be undervalued. The large share purchase would give the corporate raider significant voting rights, which could then be used to push changes in the company’s leadership  and management. This would increase share value and thus generate a massive return for the raider.”
In other words, this is generally an adversarial stance, in which an investor sees an undervalued asset and forces management to spin off assets, take the company private or break it up.
 In a previous life, The Fact Checker covered renowned corporate raiders such as Carl Icahn and his ilk. We also have closely studied Bain Capital and can find no examples that come close to this situation; its deals were done in close association with management. Indeed, Bain generally held onto its investments for four or five years, in contrast to the quick bust-em-ups of real corporate raiders. So calling Romney a “corporate raider” is a real stretch.
 So how does the Obama campaign justify this phrase? It cites a single Reuters story from last August, about a campaign stop in New Hampshire, written by a stringer, Jason McLure, who was previously based in Africa. Buried in the article is a reference to Romney as a “former corporate raider.” 
... 
The Obama campaign fails to make its case. On just about every level, this ad is misleading, unfair and untrue, from the use of “corporate raider” to its examples of alleged outsourcing.  Simply repeating the same debunked claims won’t make them any more correct.


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