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Just how much of a role would the government have played in supporting Chrysler and General Motors if Mitt Romney had been president?
As First Read reported yesterday, the former Massachusetts governor has worked to couch his opposition to President Barack Obama's decision to bail out the two car companies -- a decision which Romney, who was raised in Michigan, is being forced to confront heading into the state's Feb. 28 primary.
Democrats and the Obama campaign have made a big issue of Romney's 2008 op-ed in The New York Times entitled, "Let Detroit Go Bankrupt," especially in light of the signs of encouragement in the auto industry since the bailout. He penned it just weeks after Obama secured the presidency.
Related: Obama touts manufacturing at Wisconsin plant
The piece, published as the automakers were facing a major cash crunch, called for what he dubbed a “managed bankruptcy.” He said the car companies needed to restructure their labor agreements; replace each company's management and rid them of corporate perks; and increase government spending on alternative energy and fuel economy research, which would benefit the industry indirectly.
Of direct government assistance, Romney wrote: "The federal government should provide guarantees for post-bankruptcy financing and assure car buyers that their warranties are not at risk." He stated, declaratively, “Detroit needs a turnaround, not a check.”
Since then, Romney has spoken publicly about the bailout, essentially trying to take ownership for the successes of the auto industry's turnaround while decrying Obama's management of the process. Romney argues that the administration basically ended embracing a variation of the strategy he originally advocated.
"The indisputable good news is that Chrysler and General Motors are still in business," Romney wrote Tuesday in The Detroit News. "The equally indisputable bad news is that all the defects in President Obama's management of the American economy are evident in what he did."
The separation between Romney and Obama on the issue of the bailout stems from two issues. First, Romney argues that interests of the labor unions were unfairly favored over some of GM and Chrysler's private creditors. The government-supervised bankruptcy did this, he argues, by allowing the autoworkers’ retirees program an equity stake in the restructured GM in exchange for providing financial support for the bankruptcy.
Second, Romney appears to differ with the president over the extent to which government itself should have stepped forward with money to help stave off liquidation of GM and Chrysler and provide for the restructuring process. The administration's approach did this in the case of GM by essentially establishing a new, restructured company in which the government became a majority shareholder. (Romney argued Tuesday for the government to divest itself from the company.)
Romney's position in the past has been that the private sector could have stepped forward to finance and more effectively manage the bankruptcy process -- especially in a way that would have treated private stakeholders in the companies more fairly.
The right-leaning editorial page of The Detroit News weighed in Wednesday:
But on the key question of whether the automakers could have managed themselves through a traditional bankruptcy without assistance from the government, Romney is wrong. The loans provided by Bush and then by Obama allowed the domestic auto industry to survive the darkest hour of its history and return to thriving operations today.
Critics also contend that Wall Street might not have been in the position to give that financial assistance to Detroit in 2009, as Lehman Brothers collapsed and global credit tightened.
But Romney appeared to add more uncertainty into his position surrounding the bailouts in an interview Wednesday on Detroit talk radio station WJR. Romney said that the government should have been available to step in and provide financing during a structured bankruptcy by way of a bridge loan -- the initial way in which the Bush administration propped up GM and Chrysler at the end of 2008.
Romney explained:
They needed to go through bankruptcy, and if, as part of that process, they needed financial help to get out of bankruptcy -- a bridge loan, or guarantees on sales of cars and so forth -- I said the government should be there to provide that. But the point was they took the wrong process, they wasted a lot of money, and ended up giving the companies to the UAW.
That doesn't necessarily mean that Romney would have pursued the exact path as the Obama administration for restructuring GM and Chrysler, but it does indicate some willingness for a more expansive role for the government during bankruptcy. Spokesmen for the Romney campaign didn't immediately respond to an inquiry seeking clarification.
But in addressing some of the political flak he's taken over the bailout, Romney added on WJR: "I don't imagine that anyone could think I had any interest other than to see the companies to thrive and survive, and that's why the original op-ed piece I wrote describes what I thought was the best way to get that done."
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I find the lack of economic literacy on these boards facinating.
I find the outrage from the right on these boards in regards to the U.S. Gov. loaning the auto industry big bucks even more facinating.
I find the ignorance concerning the history of labor unions on these boards facinating.
Obama in 2012, if only because the right is so angry and frustrated they'll go right ahead and pick a two-faced liar like Mitty boy to be their nominee.
Double posting is always a sign of above average intelligence. But enough about monkeys. Thanks Bush for signing the Auto BAILOUT BILL.
Which history of the labor unions are you talking about? From the beginning of this country up to about 1940 or 1950 the labor unions were thesaving grace of the American worker. From the 60s and beyond the labor unions screwed first the American public and in recent years have been screwing themselves.
If Obama and the government hadn't gone in and saved these automakers, Romney with the blessing of Bain Capital would have come in, bought what was left of the auto makers, sold off as much as they could, stopped all pensions and then filed bankruptcy on the rest. What Romney is probably most angry about is that he wasn't given a chance to rape and pillage GM and Chrysler.
No. If the government would have stayed out of it, GM would have went thru bankruptcy and come out the other side leaner and meaner. But Obama and the Dems kneow that the unions would have lost on that one so Obama had to interfere and share holders lost and the uaw was given control of a private company by the government.
Can you say Socialism?
Can't admit Bush Did It?
Seems a little petty. Even cowardly.
no balls at all.
My apologies for the double post.
It must be a powerful feeling for someone like Mitt Romney to purchase businesses, sell off or close those businesses and destroy the future of many hard working families. The auto industry, which gave his family (and him) a good, successful life, meant nothing to Mitt Romney when times were hard. For him to have said the industry should have been allowed to go bankrupt is heartless. This would have been another loss for America, for hard working Americans, another money making industry gone - or gone overseas - making the average worker and those wages disappear. Romney and his kind would like nothing more than for the rest of society to fail or disappear - so he and his rich and powerful could have it all.
This site is a joke...you call this balanced reporting..nothing but a bunch of Obummer rump swabs..Just wait till gas is $425.00 a gallon..we all know that Obummer is in bed with BIG OIL...Whatever happened to Obummers promises of not increasing the debt..oh now i remember he called Presidnet Bush unamerican..can you imagine somebody disrespecting a President like that.He must be racist!!!!
Obama called Bush unAmerican? Got a link or source for that?
Have you ever met GOP/TP poster on this vine that could produce "evidence'?
Obama called Bush unAmerican to criticize Bush for spending recklessly and raising the DEBT of the USA. That was before Obama doubled the amount of DEBT spending of Bush all by himself.
"...Obama doubled the amount of DEBT spending of Bush all by himself..."
not even close to the truth
Leroy, you're a funny guy. And no, I don't mean funny like a monkey, Leroy. Just funny.
Obama in 2012, if only because Leroy's still talking about Georgie Bush.
Who signed the bailout?
If Dems still want to blame BUSH for our current economy then they should give credit for G M's recovery. Either that or "Live In The Now".
Leroy, this isn't about George Bush. This is about Barack Hussein Obama and Mitt Romney. Obama was in favor of the bailout. Romney was not. Obama is still in favor of it. And now that we see it worked, Romney is in favor of it. That's about it.
See Leroy, in your honor I've tried to make it so simple even a monkey could understand it.
Obama in 2012, if only because the only monkeys voting will be voting for Mitty boy. Or maybe they'll vote for Georgie Bush again. After all, they're only monkeys.
Actually this is about G M's profits.
Right BUCKY?
Romney's brain. "Gee, what position should I now take that will get me enough votes to become president? flip flop. flip flop.
The unbelievable irony here is not only that every GOP candidate opposed the bailout, but that it was started under a GOP administration, and they essentially wrapped it around Obama's neck. Little did they realize it might actually work..
Stupid move.. One of many lately from the GOP. Next stupid move.. Contraception.. You sure you want these people in power?
Flip flop? Super Pacs. Domestic Terror Trials. Haliburton. Bush tax cuts. GM health care waivers. Religious health care waivers. Transparency. Drones. Wars( where's CODE PINK) Gay Marriage. Flip Flop. Flip Flop.The Surge. How many lobbyist does Obama have on his staff? Obama promised to unite and govern from the middle. Now it's my way or the highway. or class warfare.
Bush and the democrats originally opposed TARP. It was only approved after the panic of the stock market crash.
Not only is Mitt Romney a "FLIP FLOP". He is also a Liar. I must admit that he doesn't know he is a liar because he has told so many lies, he's no longer able to tell the difference between his truths and his lies. I do so much hope Republicans nominate him or Newt "THE HOOT" Gingrich to run against President Obama. Late night talk show host will have enough material to last them for at least 8 to 10 years.
Not only is Barrack a flip flopper but he is also a liar.
I predict;
Romney losses Michigan
Chrysler goes OOB in 3 years
Gm in 5 years.
No bailout will fix the one fact that they build pure sh*t and eventually market forces will prevail and crappy companies fail.
It seems to me that the presidential primaries and election have come down to a couple of issues. The republicans admit the economy is doing better but say it would have done better under them. Of course, that assumes they would not have followed G. W.'s lead. I think Romney's comments about Detroit pretty much say it all. He would have saved the auto industry but in an entirely different way. I don't know if his plan would have worked but clearly what was done did work. I don't know if the economy would be any better under the republican candidates. They believe our health care system works and I don't, they believe in deregulation of everything including the financial system and I don't and they believe the government infringes on our rights too much and outside of having to be in the army and paying taxes I really have never had much to do with the government so I guess I don't believe that either. I work in oil and gas exploration so I probably could gage it. I think they have lost this one barring some economic disaster. I read an op-ed this morning that said the republican party has been taken over by angry old white guys. I am an old white guy but I guess I am not angry enough.
Or Geopolitical meltdown. Libya is Obama's war. They now have Ethnic cleansing, Torture and rape of both men and woman. Forced relocation and a destroyed infrastructure. To go along with the 50,000 Blacks that America killed for them.Code pink vanished the day Obama was elected. But we have more wars than ever. Were killing muslims in 8-10 countries. How's Obama doing on Iran? or Syria? or Russia?
you gotta change that channel dude....
Gpotts, can you tell me the date when Barrack Obama signed the auto recovery act? Becuase I thought BUSH DID IT.
LEROY: Have you vacationed in Iraq recently??? What the hell do you think is going on over there in that hell hole? 4500 dead Americans, 25,000 grieviously wounded, in excess of ONE TRILLION spent as compared to apporoximately 1 Billion spent and ZERO American casualties. And just in cash you forgot, allow me to remind you that Ghadafi was a murderer who caused the death of over 100 Americans on that ill fated Pan Am flight. I thought the Right was always so gung ho about killing bad guys and that Democrats were wimps who never followed through? And now you're accusing Obama of being a blood thirsty, warmonger because he helped overthrow a tyrant.
No one knows what will happen in Libya. Perhaps it will wind up under another dictator, perhaps not. At least we can hope it will be someone not half as insane as Ghadafi was.
He killed a hundred Americans. Then we killed 50,000 black Libyans. sounds fair. Barry should probably win a second peace prize.
But, at least we stopped them from Nationalizing the oil.
Ron,
You should also address how the Tea Party would have affected the Republicans. You should keep in mind that they came together because they were upset over how much Bush had increased the debt and had vowed financial accountability.
Fair is Fair. Mitt (Willard) Romney gave Detroit the Middle Finger during Tough Times. It's only fair that the People in Michigan return the favor and give MITT their Middle Finger during this primary!!!!!!!!!!!!!!!
What? Romney hasn't lived there since High School. What was he supposed to do for Detroit.
LEROY: A rabid Obama hater I see. What should Willard have done?? How about keeping his mouth shut for starters.
As is SOP for Willard, he wants to have everything both ways. He's ranted repeatedly against a bailout, first before it occurred and of course, since Obama followed through with it. Now he's want's people to think that he wasn't really against it or if he was, it would have been much better under his plan. What plan that would be we don't know, cause Romney has 2 or even 3 positions on any topic you care to mention.
Hey Leroy, how about doing what Bush and Obama did. Try to help the city and state come up with Solutions to their problems, versus "hey, this ain't my problem. Go Bankrupt and I know a company called Bain Capital that will buy your assets for 2 cents on the dollar". And, all the workers and their families... We'll they can eat Cake!!!!!!!!!!"
Not when your dealing with Dem liberals. Fair to them is stealing other peoples money to give to them, That is what is fair.
the boys
you have taken the definition of a compete moron and idiot to a higher level. Thanks
Romney will lose Michigan: AMAZING....
leroy 2012
No one cares or believes anything you have to say because you are a racist pig liar. Thanks for that
Chuck Norris for President 2016
"Since then, Romney has spoken publicly about the bailout, essentially trying to take ownership for the successes of the auto industry's turnaround"
What an arrogant little piece of sh!t.
I have not seen this "industry turnaround" you talk about. GM just posted thier highest return ever, but they still have not sent the tax payor a dividend check (fair is fair, right) OR payed the tax payor back yet.
We own 25% of GM's stock. The government will sell it when the time and price is right.
Chrysler is now reported to have the LEAST Customer satisfaction of auto makers, something didn't go right.
Gubment?
I like what you wrote at the top of this page. Thanks.
Romney has already said that he would have let GM and Chrysler fail.......
Now he says it's good news that they are in business but that Obama didn't handle it well enough.
That is priceless!
And this guy is trying to convince people he knows how to create jobs?
hahahahahhahahahahahahah
Boy I'm glad Bush Signed the Auto Recovery Act and saved GM
Barney Frank (D MA): 'Tea Party Was Much More Effective Than Occupy'
Representative Barney Frank (D-MA) spoke to CSPAN Thursday morning and expressed his views on the Occupy Wall Street Movement in comparison to the Tea Party Movement.
BARNEY FRANK:
“The tea party has been much more effective than occupy. The people in tea party do a much better job of organizing to get their policy views made apart of this process than occupy people. The occupy people do more to make themselves feeling emotionally satisfied”
-----------------------------------------------------
DUH. . .
The truth is much more powerfull
"The truth is much more powerful."
Freaking hilarious. Especially since the Tea Party enjoys a nation wide approval rating of about 12%.
Gee whiz, when I think of the truth I never automatically think Tea Party. "DUH."
Obama in 2012, if only because no self-respecting Tea Bagger will ever vote for Mitt Romney.
actually Bush signed a temporary fix, it only lasted a few months. he left the hard work for President Obama- GO FIGURE
phil-667368
You never told us when was the last democrat congress to preside with a budget surplus but you were very quick when you felt I had made a mistake.
The last congresses to preside over a budget surplus one year and then preside over a deficit the next year was controlled by the GOP in both years.
The only difference was that the surplus year had a Dem prez and the next year's deficit had a GOP prez.
Just goes to show that congress really isn't in charge.
But a democrat congress has never presided over a surplus. And you are not telling the complete story. A republican congress resided over all 4 years of Clinton's surpluses. It was a democrat congress that presided over Clinton's budget deficits.
Aren't you one of the liberals that has been claiming that Obama could not pass a budget because of the republicans?
rick, you never asked me about a budget surplus.
what does that have to do with my statement about Bush only signing a temporary fix for the auto industry?
by the way, your answer is 1969
The title of the article is totally off. Nitmit hates organized labor from the getgo. Now he's trying to hide behind his lies to say that he would have supported the auto industry if they had gone thorugh an ''organized bankruptcy"
What he really means is that he would have brought in his vulture capital company Bain to buy out GM and Chrysler through an LBO, destroy the pensions and 401K plans, sell off all assets to foreign automakers let the workers fend for themselves and pocket all profits for himself.
You have no idea what he REALLY means. TOOL
republicans hate the unions because they give power to the non-rich
No, conservitives hate unions because they run most businesses out of the country or into bankruptcy, mostly the public unions. If those that "used" to run GM allows the uaw to run the compnay into the ground, then that is GM's problem as a private company and tax payors have no business getting in the way.
SON: No conservatives hate unions because hating is what the Right does best.
Ever studied the legacy of labor unions in this country??? Do you know how many workers paid with their lives so that a middle class could be created? All the things that you take for granted, the 40 hour week, paid vacations, safe working conditions, sick leave, ALL of these were fought for and bled for by unions.
Only the GOP would consider school teachers and fire fighters to be "thugs", your favorite term.
Ever hear of the Triangle Shirtwaist Factory Fire? It's what started the entire labor movement in this country a century ago. You won't be happy until American workers labor under the same horrendous conditions and for 50 cents an hour, just like in China. That's your vision for America.
Do you recall the 29 miners killed last year in WV??? The mine owner was a rabid union buster and ran the most unsafe mines in the state. Had that been a union mine, those men would be alive today. Instead, they're corpses. Bet your happy now, eh Frank???
not the traingle shirt waist fire ozzy - that ancient and most beloved of union lore. You are speaking ANCIENT HISTORY ozzy - worker safety is now points of law - union do ONLY one thing now - to drive up the cost of labor. Unions are what killed the US steel industry and the American auto industry. The only thing little obama did was to prop up fat fat fat uaw pension and the dunce in the WH also gave the uaw a 58% controling interest in GM - Brillant , isnt he. So go ahead little oz look for the union lable and youll find crippled industry and bankrupt state budgets every time
pc- you mean the UAW has 17.5% interest in GM? of course you did
wrong phil - the uaw has a controling interest in GM -- thanks to the dunce in the WH paying back his union pals. You know phil - if you check your facts BEFORE you post - you wont look like such a boob
pc, the UAW has 55% of CHRYSLER and 17.5% of GM.
nytimes.com/2009/06/02/business/02uaw.html
cbsnews.com/stories/2009/05/26/business/main5040549.shtml
educate yourself
don't suppose you have a link for your looney figures, do you?
The interest that the UAW has in these companies is through the pension plan, and does not have voting rights. I talked to people that actually know, people that work for GM and the UAW.
Romney=No TARP funds for any auto company...not now, not ever! Let them go down the drain!
Romney's strategy is to bash anything and everything Obama does.
He really didn't think this one through, Santorum is giggling in his vest.
Any liberal's strategy is to drop a smoke bomb on any information that may just disprove what they(liberals) are pushing and then run away.