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Who to blame for decline at Contec

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In case you’re wondering if I hold Mitt Romney responsible for the decline of the cable-box-repair company Contec and the loss of hundreds of jobs in Schenectady, the answer is, I do not. Contec would probably have laid off all those workers over the years and filed for Chapter 11 bankruptcy protection the other day even if Mitt Romney had never been born. I do remember when Contec, already employing 200 people, broke ground for ...

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comments

manjoe
September 9, 2012
8:06 a.m.

[ Flag Post ]

Carl. Your bias is getting into the way of your ability to sort out the facts; subsequently your opinion in this case is worthless. The "game" companies like Bain play is to make a buck, but not how you describe it. It's to find opportunities where they can add the value of their investment and their expertise to take a company that would otherwise close or flounder and make it a success in the marketplace so that everyone involved--including the customers and employees--can benefit.

But in business, as in life, there's no guarantee. After doing the best they can, they aren't able to fix all problems and in some cases the fixes, while salvaging the company, cause pain includidng closing plants and laying off people. That's not something anyone in private equity looks forward to or chooses to do without regard for the cost involved.

The alternative is a system like that of the failed Soviet Union. It sounds like you'd prefer the United States adopt that approach. I'd advise you to reconsider.

justapto
September 9, 2012
9:04 a.m.

[ Flag Post ]

Did we all forget the quote from Mittens "I love firing people"? Buiness schools used to teach the philosophy of building a business to make a profit, hire people and pay a fair wage and your contribution of taxes. That was the school theme back in the 1960s.
Now; Profit is first. Use the environment, tax codes and people to get to the maximum profit.
No more shows such as 'Industry on Parade' from the early 60s. 'Flip this House' with the least overhead, investment and use the cheapest labor to make the biggest profit.
Too bad for the buyer of a substandard home. The same is true of the products we buy. The cheapest material, quisckest time and lowest foreign labor.
Buyer Be Ware!

albright1
September 9, 2012
10:52 a.m.

[ Flag Post ]

Perhaps Carl, you think the Solyndra model is better....take $500 million of the taxpayers money, give it to your Democratic cronies, so they can in turn send some of it into your campaign coffers...then go bankrupt and leave the taxpayers holding the bag....

albright1
September 9, 2012
12:24 p.m.

[ Flag Post ]

Justapo, Don't be a democratic tool. That supposed quote was discredited the day the democrats started using it. His exact quote is as follows.... "I like being able to fire people who provide services to me. You know, if someone doesn’t give me a good service that I need, I want to say, “I’m going to go get someone else to provide that service to me.”"....

Here, you can watch it for yourself www.youtube.com/watch?v=dBOqLxzGTx8

wmarincic
September 9, 2012
5:21 p.m.

[ Flag Post ]

Justapo,

I'm sure your buddy Barry was on the up and up with Solyndra right... Hey Carl don't you have some terrorists to defend?

RKrough
September 10, 2012
10:22 a.m.

[ Flag Post ]

Comparing Contec an Solyandra is comparing apples and oranges. Contec was raided by Bain for its assets and moved out of the country for the gain of a handful of wealthy investors who parked their profits offshore.

Solyndra was a bad/stupid loan, but the money stayed here in the USA and was largely absorbed into the larger economy through vendors and employee wages.

albright1
September 10, 2012
1:36 p.m.

[ Flag Post ]

RKrough, The issues with Contec all involved private money transferred between private parties. Solyndra, on the other hand involved public money (yours and mine) being handed over to private cronies of Obama on a deal that had no chance of succeeding. The Obama administration knew that Solyndra was going bankrupt before they handed out the cash. Why? Because they were taking care of their campaign backers. That is the definition of corruption.

RKrough
September 10, 2012
3:36 p.m.

[ Flag Post ]

Polish that dung anyway you like, The fact remains that the private money exchanged by private hands involved public money loaned through Metroplex and the numerous tax incentives that Contec received. Bain took advantage of the city, the county and the workers and then sent their jobs to Mexico.

albright1
September 10, 2012
6:41 p.m.

[ Flag Post ]

Now your getting close RKrough, the Metroplex has never been anything but a leach on the people of Schenectady. Don't blame Bain or any of these other recipients of Schenectady taxpayers hard earned dollars. Blame the elected leaders and Metroplex for handing out huge sums to business that never give back an equal amount and almost always go out of business...

justapto
September 10, 2012
7:21 p.m.

[ Flag Post ]

Schenectady was a 2 horse town and both horses, (GE-American Locomotive), left through the barn doors and didn't close them on the way out. All supporting business to those huge employeers also closed down.
American locomotive lost business because the US decided to build roads and not invest in trains. Stupid because we now are dependent on oil.
GE took the oportunity to get huge tax benefits by investing over seas.
The tax payers lost and Schenectady lost.
Big corporations are no friend to the working man.

justapto
September 10, 2012
7:25 p.m.

[ Flag Post ]

albright: I hope you are one of the 1% super rich and your kids and grand children all are super rich.
I also hope you subscribe to the 'don't do as I do-Do as I say' philosphy of the Republicans, I have been a registured Conservative since 1972. We believe in law and order, business success and the patriotism of the American Government and Democracy.
The Republicans believe in Religious rule and make a buck-screw the worker.

albright1
September 10, 2012
8:36 p.m.

[ Flag Post ]

Justapto, Thanks for the good wishes. I am glad you are a conservative. The country needs more of us. I think we both probably would concur that most politicians are not the cream of the crop when it comes to truth telling. The choice we must now make is which candidate is more likely to reduce the spending and size of government.

ajp1law
September 12, 2012
10:18 p.m.

[ Flag Post ]

Moving jobs to Mexico.....sounds like NAFTA....smells like Guillermo Clinton...

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