As Chrysler Repays Loans, DNC Jabs Republicans Who Wanted To 'Let Detroit Go Bankrupt'

[Purveyor]

Source: MLIVE

With Chrysler expected to repay its debt to the federal government later today, the Democratic National Committee this week released a rapid response video criticizing Republican presidential hopefuls Mitt Romney, Newt Gingrich and Tim Pawlenty for arguing against the auto bailout.

The title of the spot -- "Let Detroit Go Bankrupt?" -- is a direct reference to Romney's 2008 New York Times editorial in which the Detroit native suggested that if the federal government were to intervene, "you can kiss the automotive industry goodbye."

Romney's prediction, of course, proved incorrect. General Motors and Chrysler both accepted taxpayer money and have enjoyed rather rapid ascents back to profitability. Chrysler is expected to retire the $5.9 billion balance on its U.S. loans today, a milestone CEO Sergio Marchionne will celebrate in Sterling Heights with two top aides to President Barack Obama.

The Bush administration began the auto bailout in 2008 by diverting $17.4 billion from the Troubled Asset Relief Program. Despite vocal opposition from some high-profile Republicans, the Obama administration approved an additional $60 billion and helped lead GM and Chrysler through structured bankruptcy proceedings.

See "DNC Video: Let Detroit Go Bankrupt" at source link!


Read more: http://www.mlive.com/politics/index.ssf/2011/05/as_chrysler_repays_loans_dnc_j.html

[DainBramaged]

1. What About The Government "Bailout" Of Foreign Automakers?

We have Hyundai Motor Company that got $252 million in incentives. Toyota there got $29 million in incentives. Honda, $158 million and Mercedes $253 million in incentives. It just seems odd to us that we can help the financial institutions in this country and that we can offer incentives to our competitors to come here and compete against us but at the same time, we are willing to walk away from an industry that is the backbone of our economy."From 1981 to 2005 Michigan got back $.85 for every dollar in taxes sent to the federal government. Alabama got $1.71 for every dollar sent to the federal government." Alabama gives around $700 million per year to foreign manufacturers

http://tpmcafe.talkingpointsmemo.com/talk/blogs/k/g/kgb999/2008/11/30-week/


Republicans will never talk about that....nor will Democrats who love them Foreign irons

[Psephos]

3. The US govt seized Chrysler, told bond holders to screw themselves, then gave the company to Fiat

Not to mention billion$ tax abatements and more billion$ in loans.

In my book that's the biggest bailout of them all for a foreign automaker.

[DainBramaged]

5. Wait, they SEIZED Chrysler??? GAVE it to Fiat??

:spray:


Think you could show us some proof of that?

[Dreamer Tatum]

9. +1000

[DainBramaged]

11. YO, proof please......

or retract your spew


Like Republicans, tell a lie often enough and the stoopid believe you....


I tried every combination of the words you used bro (:rofl: ) and I couldn't find no evidence of no kind

[ieoeja]

20. The gov't purchased General Motors, not Chrysler.

General Motors renamed and went bankrupt. A new General Motors was created with the United States holding a majority of shares.

The new GM purchased the remaining assets of the old General Motors, divided that income among their creditors, etc, and the old GM was no more.

The new GM made enough money to buy back US held stock. But decided they needed to wait. Since that decision was made by the board where the US gov't holds a majority, the gov't ultimately got to make the call on that.

[Initech]

2. Why don't we go after the vultures who took Chrysler's pre-merger surplus?

[backtomn]

4. What about Ford ??

They didn't take the money that GM and Chrysler did.......or that taken by a bunch of foreign car companies.....and they appear to be doing fine. The cars that they are selling today actually look really good. If I could afford a new car right now, it would be a Ford......not a Fiat (I mean Chrysler).

[DainBramaged]

They borrowed BILLIONS on the open market before the market crash

their stack was down to almost $2 at one point in 2009, and A LOT of people bought it.

[Demeter]

13. And they did get govt. bailout for their loansharking

[Historic NY]

25. Ford got lucky in 06 after staggering record breaking losses...

http://www.nytimes.com/2008/11/19/business/19auto.html?_r=1&em

Detroit Chiefs Plead for Aid

His comments were echoed by G.M.’s chairman, Rick Wagoner, who warned that the rippling impact of the auto industry’s cash woes could put three million American jobs at risk.

He said that a failure by G.M., Ford or Chrysler would rapidly bring the entire domestic industry down. “The societal costs would be catastrophic — three million jobs lost within the first year, U.S. personal income reduced by $150 billion and a government tax loss of more than $156 billion over three years,” Mr. Wagoner said.


Ford hit by record $12.7bn loss

Alan R. Mulally, Ford’s chief executive, added, “If any one of the domestic companies should fail, we believe there is a strong chance that the entire industry would face severe disruption.”

A slump in sales, combined with major restructuring costs, saw the firm lose $5.8bn in the final three months of the year alone.

The iconic US carmaker has been struggling in the face of competition from Japanese rivals such as Toyota.

Ford has plans to close 16 factories in North America and cut 45,000 jobs.

The company, which is currently the second-biggest carmaker in the US, may be overtaken by Toyota in its domestic market later this year, reports have suggested.


http://news.bbc.co.uk/2/hi/business/6298463.stm


Ford got lucky back in 06 when they sold off everything except the kitchen sink. The others couldn't get out before the market went south.

[SpiralHawk]

6. Why do Republicons HATE American car makers?

It's tough to understand why Republicons are so intent on wreaking FAIL for American companies that provide jobs for American citizens?

What is up with that?

[Muskypundit]

8. its all about their hatred for unions

If the republicans can create an environment where the automotive industry fails, they get to blame it on the unions, helping them to legislate them away.

[Jackpine Radical]

10. Bingo.

That makes sense. I think it's "overdetermined behavior" on the part of the Rs. They want a failure to hang around Obama's neck. (They already pinned the Bush-inspired Stimulus Package on him and then continue to attack him for it). Actually, there's no real downside for the Rs if they drive Detroit into the ditch. They're already blaming the downfall of the city on all the usual suspects--the blacks, the hispanics, and above all, the Muslim community.

[jmowreader]

19. You forgot the unions

Republican hatred for unions knows no bounds.

[Jackpine Radical]

28. I was adding to a post that mentioned exactly that.

My point was just that there are other forces in play as well. Racism, anti-Islamism, and general hatred of the poor play large roles in what's happening in Detroit; that is, the destruction of Detroit is a winner for the Rs on a number of fronts, not just the unions.

[DainBramaged]

16. I see it in this thread....

[Codeine]

23. Hell, half of DU hates the auto unions.

With friends like these. . .

[Kingofalldems]

7. Kick one time for the teabaggers

[Demeter]

12. Never Fear, Detroit IS Bankrupt

However, the multinational conglomerates/banksters with a car company attached are doing just fine, now that they've dumped their American workers and retirees into the Great Lakes...

[AlbertCat]

14. Fabulous!

Now they can churn out cars for every man woman and child!

Thus suppressing public transpo and rail, as usual, forcing each and every one of us to absolutely rely on the Auto and Oil companies.

[DainBramaged]

15. Americans being put back to work, and DU screams bad doggie

I guess your agenda is way more important than the blue collar

UNION

workers who depend on America for their livelihood.....

[Codeine]

22. If we really wanted comprehensive public transportation we'd have it.

We seem to prefer cars.

[Atypical Liberal]

17. Meh.

Meh, I'm still not terribly thrilled about this. Sure, it looks like the bet paid off - this time - and the taxpayer didn't take a bath.

But this is still the same old song of privatization of profits while socializing the risks.

Yes, I understand that for these giant industries it is, in fact, a matter of national security if they fail. The economic and technological losses would be devastating.

But this is still privatization of profits while socializing the risks.

This time the risk paid off.

[Dawgs]

21. I don't think we had a choice but to take the risk.

Your desperately trying to make it sound like you were initially correct and it's not working. You were wrong then and you're wrong now.

[Atypical Liberal]

24. Huh?

I don't think we had a choice but to take the risk.

You are probably right.

Your desperately trying to make it sound like you were initially correct and it's not working. You were wrong then and you're wrong now.

I don't follow what you are trying to say.

The bailout worked, and this time the taxpayers got their money back, with interest. But if Chrysler had gone under anyway, then the taxpayers would have taken a bath.

The taxpayers are not sharing in the profits from Chrysler's business, yet they are on the hook for its failure. This is privatization of the profits and socialization (distribution) of the risks. I'm not very warm to that idea.

Now I guess one could say that the massive taxes that Chrysler pays makes it so that taxpayers DO share in their profits. But I'm pretty skeptical about mega-corporations paying their fair share of taxes in the first place. Most of them seem to hire armies of accountants and pay loads to lobbyists to insure the most favorable (to them) tax policies they can get away with.

[Yupster]

29. They shouldn't have screwed the bondholders though

That sure looked illegal to me.

And to the Indiana teacher's retirement fund too who took the government to the Supreme Court, but the Court didn't hear the case.

When a company goes bankrupt, the bondholders are supposed to be paid first, and that didn't happen in this case.

The government offered GM bodholders a deal. They voted no overwhelmingly and then a similar deal was done anyway without a second vote.

Whether you agree with the outcome or not, 400 years of bankrupcy law should have been followed when GM went bankrupt.

[liberal N proud]

18. Remember they wanted Detroit to go belly up while bailing out Wall-Street

[Hubert Flottz]

26. And NOW, look at Toyota...they can't get parts and

the cars and trucks that they were making before the quake had some "series" pwoblems! Mitch and the other repubs who were all honking Toyota's horn a year ago, because Toyota had scab plants in their states and kicking the UAW when it was down, just might be up shit creek themselves soon. The Toyota plant in WV is pulling out all the stops to keep from shutting down and laying off. NO PARTS.

This could be the year of the recall in more places than Wisconsin and Michigan. If a recall if the sure fire fix for your lemon auto...then recall just might be a sure FIRE fix for your lemon politicians too.

[whoneedstickets]

27. Why do I think GM and Chrysler will have ZERO loyalty to the President that bailed them out?

Rather than let them go bankrupt?

The clock is ticking on the back stab from motor city......ten.. nine...