and a mania former labor secretary robert reich described bain's pirate like approach to capitalism best in a recent video. let me explain the magic of private equity and eight simple steps step one pointers from private equity firms don't risk their own money they get other people to give them money to invest. step two they use this money to buy of companies they think they can squeeze higher profits from for step three they squeeze out higher profits by cutting the company's costs and for most companies the biggest cost is payrolls so private equity managers typically reduce payrolls by firing workers and or cutting other workers' wages and their health and pension benefits step four they also use the company as collateral to borrow a pile of money from banks and since interest payments on this debt are deductible from company income. the company shows even bigger profits step five they get the company to issue a special dividend to repay the original investors so now everything else is gravy step six then they sell the company for much more than they bought it for because hey it's mor

toys that was owned by bain capital the details of the case a pretty complicated but they basically boil down to this stephen hots is he accusing willard mitt romney of being a gangster and to be perfectly honest hoss has a point when it was running bain capital during the eighty's and ninety's the company made its money by forcing companies into debt and then squeezing them blind for every last bit of cash they had in fancy terms this is called private equity in real reality it was glorified piracy glorified piracy that was made possible by who else ronald reagan when he stopped enforcing the sherman antitrust act and deregulated the financial industry in the early one nine hundred eighty s. leading to the explosion of mergers and acquisitions the carrot characterize the early eighty's the m n a mania former labor secretary robert reich described bain's pirate like approach to capitalism best in a recent video. let me explain the magic of private equity in eight simple steps step one partners in private equity firms don't risk their own money they get other people to give them money to

detroit's old cops and firefighters will now have to foot a big chunk of the bankruptcy bill just as bain capital trapped. but he's with massive debt obligations wall street trapped detroit with its risky debt schemes and now just as bain forced every day employees to pay for the debt ford enforced by their company haven't already tried some urgency manager is making public workers pay for the bank's toure's gambling away detroit's finances like one of the banes acquisitions detroit will be sold at auction to pay off debts created by banks or it's not just public workers who will suffer the whole city is on the chopping block kevyn orr wants the city's art collection show sold off detroit's water department might put on the market and a top it all off right wing billionaires are trying to buy bell i'll park and turn it into some sort of libertarian gambling paradise the privatization of detroit is about to begin and there's no way the billionaire class is going to miss out on mitt romney grew up in michigan so it's fitting in a way that the first attempt to use the bain strategy a public institut

our deals reporter joining us on bain capital buying bob's discount furniture.past the hour which means it is time for on the markets. higher, if you want to be optimistic on this monday morning. the nasdaq and the down very close to that unchanged line. keep in mind, as we head towards the last trading week of the year, s&p 500 up 29%. when we come back, christmas made the over. the deals are not. retailers want you back. how they are making their best effort to get you in stores. and for the first time in four years, apple stock not performing dosh -- not outperforming the s&p 500. ♪ ♪ >> welcome back. you are "in the loop." weekly jobless benefits for 1.3 million americans expired over the weekend. 400 and $50provided checks to the unemployed after state benefits ran out. tim cook, getting a raise, a two percent increase over last year with an increase in salary and the rest in nonequity incentive plans for compensation. minoritye taking a stake in crocs, investing $200 million in the struggling footwear maker, announcing that their ceo, john the carmel, will

. >> matt, don't forget the partner with bain capital, and i do want to talk about technology, but let's first talk about bit coin. you've been involved in trading of bit coin lately, yes? >> yeah, i've used coin base and bit stamp. >> you bought and sold some just as a speculative venture? >> correct. i think the property way to think about it for now is as a commodity, not as a currency, because a currency requires price stability, and bit coin doesn't have that, but it is a great way to diversify from sovereign conscious success. ought but did you buy that just because you wanted to know what it was like? you wanted to test this out? >> yeah, first and foremost, i wanted to test it out and see what it was like, and then i started taking advantage of the volatility and started trading bit coin. >> so why not gold? i mane, that's a more liquid market. it's not currency, and it has a lot of keanlts in terms of trading that bit coin doesn't. >> right, well, so far the only way to diversify a way from fiat currency has been representative currencies like gold and silver, which have physica

this mitt romney should be proud of what's happening in detroit that's because during his time at bain capital he perfected the type of glorified extortion and theft tactics rick snyder and kevin or are using right now to rob city workers of their hard earned pension plans when it was running bain during the eighty's and ninety's the company made its money by forcing companies into. that and then basically robbing them blind for every last bit of cash they had being would take out a loan for say a billion dollars and it would use that billion dollar loan as leverage to buy the company but instead of paying back that billion dollar loan itself bain would dump it on the company has bought now the words bain would make the company has bought paid for its pay for its own acquisition and where would the company get that billion dollars needed to do that when it all met would say it got the money by eliminating fraud waste but in reality that money came from stripping the company of its assets and converting them into cash a campaign came from taking employee assets like pensions and decent paycheck

one of those investors who is looking at the space from bain capital, joining me now to talk about thishink amazon saw in kiva? >> the beauty of kiva systems was that nick had seen that in a traditional e-commerce warehouse, the typical worker spends 75%, almost 90% of their time walking in the warehouse, trying to find a particular item you're looking for. you think about something like amazon, with 150 million individual items in their warehouse that they are carrying on their website. a consumer may order any combination of those items. the insight with kiva is, instead of having the work or go to the shelf, which could be a 10 minute walk, a 20 minute walk, why not use robots to bring the shelving directly to the worker, remove that 80% to 90% time walking, and make the individual worker three times more productive than they would ordinarily be? >> i have spent time at those amazon fulfillment centers, with the pickers and stowers. they think they walk 10 to 12 miles a day at that job. >> it's incredible. you think about the issues that amazon has at this time of year with the holid

bain capital was an early investor in a robot company that amazon bought last year.nson spoke with them about how the robots are helping the fulfillment centers be much more productive. >> you think about the issues like amazon around the holiday season when they are probably doing 50% of the revenue and the number of workers they have to hire to fulfill that demand, with something like keva, those workers can fulfill three times as many orders. that allows amazon to be more efficient and allows them to manage the peak demand during the holidays. what is a robot? how do you define what a robot is? it's essentially a combination of hardware and software that can perform a particular task using a set of software commands. if you think about the keva robot, these were robots that maneuvered on the warehouse floor. they were intelligent enough to follow a grid pattern. wouldftware algorithms control literally a fleet of these robots to optimize exactly where the robots would go and which shelf to bring over to the worker. that was the power of the robots. >> is there som

at least $10 million was spent hammering him overtime at bain capital. >> romney shut this place downthey shut down entire livelih d livelihoo livelihoods. this was a booming place. they turned it into a junk yard. >> the president seemed to hand the momentum back to romney with this line in virginia. >> if you got a business, you didn't build that. somebody else made that happen. >> within a month, romney had chosen paul ryan as a running mate capping a furious three months. on the day of the convention, the polls were unchanged. romney trimmed 3/10 of 1% off the president's lead. fast forward and the president was riding a wave. the lead averaged points. two days later, the consulate was attacked and the ambassador killed, leading to a wave of criticism. they questioned whether they could turn the tide and game changers. the 47% remarks and super storm sandy struck. where did it leave us? it turns out it was the same place we were when the conventions ended the. the president won by over four point, almost the same margin he had in september. according to the gamble, there were 68 i

a guy in indiana whose company had been bought out by bain capital and lost their jobs, they have done the same thing when romney ran against ted kennedy for the senate about 10 years earlier. it was not a secret that they were around. occupyust the impact of made it more relevant for them to come out and give it more bite. i think we are going to be stuck in the same kind of stalemate situation for some kind the -- for some time yet. i think these things are percolating. it is not really biting enough to make a change for one final that -- someone mentioned earlier today -- earlier today, someone said that there might be a tea party developing on the left. i think there is a big difference. the tea party was government to do less. it doesn't really care about what happens to the government doing for people about health care or for poor people. for them to shut down the government to block action is not painful. is getting a little bit of what they want. the democrats are really -- the -- protestersns in wisconsin worry members of unions. there were teachers and health- care workers an

that was owned then by bain capital. he should have been said we're not going to move this plant. they've been making money here. and we're going to protect american jobs. he can iron all the cuffs he wants, he's still what he is. >> i take this as republicans trying to show they're sensitive and all about family. who isn't all about family? bottom line here is that they're going to have a hard time rebranding what they really do and how they vote and who they are. >> yeah. let's not forget that mitt romney's immigration policy was self-deportation. that wasn't a misquote. that was his policy. and when they want to rebrand themselves, they're rebranding themselves now when you've got paul ryan out there bragging that they prevented more than a million people from getting unemployment insurance extension. so mitt romney is branded by his actions and his words. not by some phony edited film clips. >> gaffes happen and everybody does them. but blaming the media, is that going to win over some people? >> no, it's not going to win over anybody. they're what he said. look at what he did

we will also speak to the managing partner at bain capital. the minimum wage. have a great weekend. ♪ >> it is 56 minutes past the hour, which means be -- we are on the markets. we're 30 minutes into the start of trading. the house passed the first federal budget in four years. it gave the first gain in four days. it is pretty fragile right now. we're up just to 1775 in the s&p 500. the 10 year yield is unchanged right now. wholesale inflation is showing an unexpected decline. prices have dropped for the month of november. the yen is also rebounding slightly after all link against the dollar for a while. focus -- natural gas is backing up slightly from two- year highs. meteorologists predict temperatures fluctuating. the joined by the ceo of spartan commodity fund. he is joining us from the nymex. good to see you. this is all the weather. it is freezing here in the forecast is suggesting a moderation next week. >> yes, right. very cold weather. if we do not see more cold weather, we could see lower levels. i'm really focusing on the 440 level

the former partner of private equity firm bain capital and also the author of "unintended consequences -- consequences." years andthrough the you also lived through the bernanke years, culminating in your book. in your view, which fed chairmen serve you best? [laughter] >> i suppose alan greenspan. even.t things steady and if you look at the class of 1982, it has been an extremely successful class because over this time, the economy has grown by leaps and bounds relative to other times. are talking about what ben bernanke's legacy might be but i feel like we do not know because we do not know where it ends and the flooding of the markets and all this money could and poorly. money really led to the asset inflation and lead to a crash that was very punishing for a lot of people. do you think we can take stock in bernanke today e >> i disagree with you on greenspan. i do not think the fed has a big impact on asset bubbles. small but not large. i think ben bernanke will be recognized as saving the world. he had tremendous courage and stepped up and got the job done and a lot of other peopl

such a backstop, so many mortgage subsidies, not just fannie and freddie but the way we treat bain capitalything else pushing risk into certain sectors of the economy. it is not the risky stuff gets as in trouble but the stuff that is safe ahead of time and treat its stake but comes back in our faces every time. >> the mortgage discussion is a long discussion too large for this but i don't think anybody alleges that small and medium-sized business lending will into the crisis. after the crisis, all the large lending was subsidized, mortgage-backed securities were subsidized through the ray of out of bed soup programs that allow the big players to accumulate all sorts of large and the s positions. the commercial paper of the large corporations was subsidized by the fed and blocked by the fed, and the one area with no subsidy was the small and medium-sized business minding area, the creator of 60% of the dogs in this country. cheryl: everyone is expected since the 2008 crisis. dennis: time for one more? i will ask a follow-up, 35 banks affected evenly, some better off than others? >> largest

it's currently controlled by several hedge funds, including center ridge partners and the unit of bain capitalr of cessna planes and helicopters, now you have them in one place. and i will go on one of the propeller planes. >> turbo props. >> i think i'm okay with that. >> i saw pictures of them. >>> and also, general motors is recalling nearly 1.5 million cars sold in china. this is due to an issue, apparently with a bracket that secures the fuel pump. it's one of the biggest recalls ever in the rapidly growing china auto market. >> what changed your mind on the turbo prop? >> i was doing a little research for turbo props. and these beechcraft planes are used for military actions and other things. >> yeah. they're -- you know jet engine is -- there is something spinning kind of like a -- it's not that much different the way that the air's being pushed. >> fast. >> it's faster but it is doing the same thing, basically. anyway, delta says it'll honor extremely cheap fares offered by mistake. kerry sanders joins us with more. we were just discussing if you bought one and knew it was too cheap. s