Romney: Bankruptcy, not bailouts, saved Detroit

[onehandle]

Source: CBS

(CBS News) Republican presidential candidate Mitt Romney said today the turnaround by Chrysler and General Motors was thanks to their being taken into bankruptcy court, not the bailout dollars that were given the automakers by the Bush and Obama administrations.

The former Massachusetts governor had written in a November 2008 New York Times Op-ed titled "Let Detroit Go Bankrupt," that automakers needed a managed bankruptcy, not a bailout check. "If General Motors, Ford and Chrysler get the bailout that their chief executives asked for yesterday, you can kiss the American automotive industry goodbye," he wrote.

In 2009 Romney told Fox News that the U.S. government becoming a majority stakeholder in General Motors represented "a very, very sad circumstance for this country ... it's really tragic in a lot of respects."

Today, with the auto industry on the rebound - 115,000 jobs added, and $5.1 billion paid back to the federal government this week by Chrysler - Romney said Detroit's resurgence is because President Obama took his advice.

Read more: http://www.cbsnews.com/stories/2011/06/03/earlyshow/main20068606.shtml

[Frances]

1. Poor Mitt

He sounds like a sore loser

[Downwinder]

2. So we need Trump not Romney.

The Donald has the experience.

[OHdem10]

3. This illustrates a businessman is not ready for governing.

He will sacrice truth in order to appease a small minority.

So he will permit the country to go Bankrupt rather
than use well-proven tools.

TeaParty--Let them fail was their war cry. They were willing
to throw MILLIONS out of work rather than use Keynesian
Economics.

The Democrats(Blue Dogs and DLC) had better get it together
and use this as a distinct difference between the two parties.

[naaman fletcher]

11. I hate romney but I think you are missing the point

A chapter 11 bankruptcy allows you to hold off creditors while you turn around. Now, weather or not that was the critical thing for GM I don't know, but a chapter 11 bankruptcy is often the right thing to do. That is different from the way we use the term "bankrupting" the country as in W and his wars and tax cuts for the rich have "bankrupted" the country.

[OHdem10]

13. Without Government money to restructure they would have failed.

[Skink]

4. Probably had to sell his auto stocks at a loss.

[Historic NY]

5. Poor poor Mitt he was born with magical underwear & nothing else.

[nobodyspecial]

6. He does have a point. Yeah, screwing over all of your employees

does tend to be profitable. In bankruptcy, you can discharge all of your pension obligations. Funny when how when you steal all of your workers pension money that your suddenly end up in the black. People who worked hard all of their lives, who took personal responsibility for their retirement, who likely traded pay increases for better pension benefits can get the rug pulled out from under them. Their pension obligations get transferred to the PBGC, but that only pays a fraction of what they were entitled to.

That is why state and municipal governments are so eager to be able to legally declare bankruptcy. Government workers often trade low pay for a nice retirement package -- one that used to be a sure thing because since when does government default on its obligations.

So, I guess if you're a Republican and have no conscience, screwing the front-line workers is good for business. Funny how all of the top execs who drove the company into bankruptcy in the first place seem to walk away with multimillions.

[groundloop]

7. Romney should know. His company (Bain Capital) bankrupted several companies, cost thousand of jobs

Through leveraged buyouts Bain Capital (founded by Mitt Romney) killed many corporations and put thousands out of work. He's obviously an expert on bankruptcy

http://thinkprogress.org/economy/2011/04/12/173892/romney-job-killer/


Corporate bankruptcy is nothing more than legalized stealing. Both Romney and Trump are masters at it.

[jwirr]

8. Last I heard Detroit is far from saved. The city is struggling to rebuild. nt

[groundloop]

9. But at least the auto industry is still in business, and in fact adding employees

[jpak]

10. Obama and the Democratic Party saved Detroit dumbass - your side wuz agin it

lying sack

yup

[SoapBox]

12. NitMitt, you are such a clown.

...bring it Mittens.

We're gonna eat your lunch.

[KamaAina]

20. NitMitt!!!

:rofl: :rofl: :rofl:

You win the Intertubes!!

[Javaman]

14. aww mittens, you're such a dimwit.

but that's okay, you'll never get elected to prez.

[TygrBright]

15. Der Mittster is tryin' to get a lock on the Stupid vote. Heavy competition there, yanno.

Sorry, Mitt. With my man the Hermanator in the race, you got no chance.

amusedly,
Bright

[sakabatou]

16. Mittens seems to live in an alternate reality.

[tndk90]

17. Romney the double-speak captain

Romney will literally say anything to get elected, so he's the guy to watch on the right. He is particularly a threat because he comes across as some kind of moderate when he really isn't, he's just moderate for the Republican party and to the "left" of tea-baggers. His original NY Times article on the auto industry bankruptcy concept was a lot of nothing: vague generalities, a little union bashing, and "government isn't the solution" ideology with no actual plans for how to save these companies. The federal governments of the United States, Canada, and the provincial government of Ontario funded this bailout because GM and Chrysler wouldn't have been able to afford to run until the they filed bankruptcy proceedings and they wouldn't have had proper capitalization to run during bankruptcy. The government bailout package essentially included a guided, managed bankruptcy process. The auto companies were able to repay most of the loans (bailout money) to the respective governments, and the bankruptcy did work... But it would be unlikely that the companies would have had the capital and the ability to bounce back this fast without that cash infusion. The bailout worked, it saved an industry. What Romney is saying is a bunch of nothing designed to capitalize on voters who think government shouldn't, and can't do anything for anyone. He's playing ideology, not practicality. His rhetoric doesn't take into account the auto industry bailout plan included a managed bankruptcy along with government capital infusion to save these companies. It wouldn't have worked unless both happened, and we see now that it was a success.

[benld74]

18. Waht effin planet is this guy living on?

[liberal N proud]

19. One of these days his doublespeak is going to collide with him in the middle