Friday, February 28, 2014

Bruce Rauner like all Plutocrats is a Vandal. Illlinois Public Pension insolvency is his and other Capitalists fault

Bruce Rauner is running for Governor of Illinois. He'll have to win the Republican Primary for a chance to square off against Governor Quinn in the general election. Rauner's sole remaining competition for the Republican Primary is Kirk Dillard after Rauner's Squad eliminated Dan Rutherford's chances with allegations of Sexual Harassment and a homosexual relationship with an intern.

Billionaire Bruce Rauner is an implacable foe of Working people in Illinois. Besides vowing to reduce Illinois' Minimum Wage to make Illinois workers more appealing to Corporate Wage Slavers, once he wins, a Governor Bruce Rauner will do to the State and citizens of Illinois what he and other Capitalists have done to Illinois Public Pensions, they will cart off all the assets in a legislative orgy of Vandalism.

Because that is what Bruce Rauner is; A Vandal, in the most ancient sense of the term. Rauner's entire fortune has been made from identifying previously existing wealth charging in and looting it.

Bruce Rauner worked for 30 years at "Wealth Management" Firm GTCR, the R for Rauner was added during his tenure. Rauner's firm "managed" Public Pensions for nearly two decades. Now, after Rauner and other Vandal Capitalists have had access to Pensions, surprise Illinois is facing a massive Pension Crisis.

By Rauner's own estimate 2/3rds of GTCR funds were supplied by Public Pensions. Here in Illinois
GTCR has "managed" money for the Illinois Teachers' Retirement System (TRS) and the Illinois State Board of Investment, the state's largest and third-largest, respectively. Additionally, GTCR had access to state and municipal pension plans from the San Francisco City and County Employees' Retirement System to the Massachusetts Pension Reserves Investment Management Board. 

For this "work" GTCR, takes a 20% or more slice plus consultation and management fees. Rauner got paid no matter what the funds he "managed" did.

So, it's not surprising that Illinois and other Public Pensions began to go into insolvency once Vandal Capitalists got their hands on the funds. In fiscal year 2009, TRS lost $4.4 Billion (22% of its' value) in 2008 TRS lost 5% of it's value because of the Management of their Portfolios by Rauner-types.

The Wall Street-Hedge Fund-Wealth Management Implosion of 2007 and on-going Republican Recession was the end result of unchaining Capitalism and opening up the gates to the Vandal Capitalists like Rauner. The Vandals took the secure Public backed funds from dozens of states, hundreds of municipalities and Unions and stole them.

Bruce Rauner's not alone in the Vandal Capitalist method. It's the method de rigueur of the 1%.
"The problem is that the world and this country should not talk about envy of the 1 percent. It should talk about emulating the 1 percent. The 1 percent work harder. The 1 percent are much bigger factors in all forms of our society." Sam Zell, in defense of Tom Perkins who compared the Working Class to Nazis.
The 1% do work hard. It takes a lot of gall for the Vandals to raid, loot and plunder and call themselves Job Creators.

Chris Hayes summed up Zell's "business" model,
Let me tell you something about Sam Zell. He bought The Tribune Company in 2008 for $8.2 billion, an extremely highly leveraged deal. It was widely regarded. I reported on it at the time as an unsustainable debt structure that would implode in on itself.  
Well, guess what? Less than a year, the company went bankrupt, listing $7.6 billion in assets and $13 billion in debt. More than 4,200 people lost their jobs. But despite the company`s troubles, executives received tens of millions of dollars in bonuses. 
Sam Zell is like the action movie hero who throws the lighter behind him not bothering to look back at the explosion. That`s Sam Zell.
Zell bought the Tribune Company and loaded them up with debt ($13 billion) as he drained the companies assets then had them claim bankruptcy and sold off the Chicago Cubs to the semi-odious Billionaire Rickets Family.

Loading debt onto companies in highly leveraged deals is a classic technique Zell and Mitt Romney have profited from immensely. This is the Hard Work that Zell, Rauner, Romney, Steven Cohen, Paul E. SingerStephen Schwarzman, Clifford S. Asnessthe Koch Brothers, and Tom Perkins demand to be lauded for, deferred to and praised.

The Vandals have already sacked the Public Pensions. With the help of Republican Governors, like Koch Brothers controlled Scott Walker in Wisconsin, several states have fallen to the rapacious hunger of the Vandal Capitalists.

If Bruce Rauner makes his way into Springfield as the Governor of Illinois, another gate will be thrown open to his Looting brethren and Illinois will be Sacked, just as the Vandals have done to other States.

4 comments:

the yellow fringe said...

Expect him to start selling hiways, bridges and state owned buildings, raiding the pension funds and instead of running state medicade hand money to a private company. KS did this, they pack up 20 or 30 million ever few weeks and mail it out of state to a company that slowly pays the poors medical bills, but, guess what, it takes months to pay, it is causing a lot of grief.

Grung_e_Gene said...

@ yellow fringe

Totally correct. Rauner will sell everything from the public and transfer it to wealth management firms in the form of special pay-to-play deals, tax incentives and other schemes to transfer wealth to the rich.

joseph said...

Scam is actually a bankruptcy term for technique of buying a going company, borrowing as much as possible, taking all the assets out the back door and then filing bankruptcy. Precisely what is the difference than what Rauner does?

Grung_e_Gene said...

@ joseph,

The Vulture Capitalism method by Vandals like Rauner is well established but, they were smart and crafty enough to create defenses for their thievery in the form of right-wing think tanks, Faux News and the domination of public radio waves which pump out a non-stop defense of their rapacious destruction.

And Rauner's firm did exactly what your taking about with Old Folks Homes and hospice care. They purchased many of them, sliced wages, eliminated care and took the government funded medicare while letting the elderly rot and die.

Rauner will do the same to everyone in Illinois as Governor.