Matt Taibbi: Romney hypocrite to decry debt problem

>>> had a small group of friends talking about starting a new company. that company has become another great american success story. that small company which grew helped us lead better lives.

>> the company which ann romney referred but i never explicitly mentioned in her speeches, bain capital . it is the foundation upon which mitt romney has built his entire candidacy. but it is also now a four-letter word which they prefer not to discuss in too much detail and our next guest may explain why. the author of the new " rolling stone " cover story "greed & debt the true story of mitt romney and bain capital ." matt, you say mitt romney is pathologically hypocritical because he talks about the america's debt being the principle number one problem the president is ignoring and democrats are ignoring while at the same time, his business built on the concept of debt.

>> right. it is incredible, his entire campaign is built ruined desemgs what bane capitin capital did. reality is he's a leveraged buyout specialist. he was exact there same person that gordon gecko was in the movie " wall street . "bor "borrowed money that others had to pay back.

>> how did he been pit?

>> well, he -- he takes over the company by borrowing money that they -- have to pay back. and then he induce it is company to pay him management fees and dividends. really, it is essentially the same operation the mob uses when it takes over a restaurant or a laundromat. it importants them to run up bills in their credit and give money back to the mobster.

>> when you examine his business biography, did you notice that staples and sports authority , these businesses, appear to come in the early stages of his career. then suddenly he has a realization that the real way to make money is not to create viable businesses but it is leveraged buyout .

>> he says this openly. he had this epiphany it was simpler to take over existing companies as opposed to creating companies from the ground up and involved fewer problems and what he actually did, again, took over companies and he induced them to pay him fees or induced them to borrow sometimes $100 million loans to pay him dividends. it was their debt but he got all the benefits.

>> he's now worth $250 million. he's no fool. you say this about mr. romney 's biography. romney 's back ground suggests a man born to be president. disgustingly rich from birth, raised in prep schools , and no early exposure to minorities outside of maids and a powerful daddy to clean up his missteps and timely exemptions from military service . that's a fairly -- i mean, he does show up at costco.

>> yeah, apparently. look, if will is nothing wrong with being born rich which he was. nothing wrong with going to prep school . i went to prep school . i think it is striking there is a great scene in the book "the real romney " written by the excellent " boston globe " team where there's a daughter of one of his colleagues goes missing and romney personally goes to new york city . as a grown man and in his 30s apparently to search for this girl. this is the first time that he's ever seen a bad neighborhood in his entire life. i mean, he literally -- book describes this moment where he's like god, these places suck. he has never seen these places. this is a guy that's running for president. i think that's an important thing for people to understand. he's not really in touch with what things are really like out there.

>> thanks so much for coming