Re: Romney "Let Detroit go bankrupt" (did anybody actually read his comme
Although I'm not a bankruptcy excerpt by any means, I do know that you have to have financing available to get a company through its reorganization. If that does not exist, when it closes down, they are really closed down. Something might emerge later, but it will be a shadow of it's former self. Bush/Obama offered that financing to GM through the U.S.Government. At one point, Romney's position was no government assistance, although he flip flops his position so much that it is impossible to know where he really stands on any issue.
At one of the Republican debates Romney said:
Source:
What Romney Wants You To Forget.
Again, it is suggested that during this period of crisis in the country, there was no private equity to be had. If Bush/Obama had not stepped in, Detroit would be drastically different that it is today. Would that have been good to allow such a strategic industry to implode? I am pissed that bad auto "leadership" has not been punished instead of bailed out, but I'm happy this industry is still there. Just as we need banks, but all the bad leadership and culture is still thriving on Wallstreet.
Thanks for the link......but Romney as a flip flop artist, isn't anything new to politics.
With not much corrected, Romney has made some points.
The economy exists as a do-over at the taxpayer's expense, with many of the same problems still in play, but carrying a tremendous debt load.......on the taxpayer ....
At one point, Romney's position was no government assistance, although he flip flops his position
It does look as if Romney is weaseling on that point......but he seems to present an argument, your link taken as a whole, for private reorganization to be the first consideration.
It wasn't with the auto industry.....managements decided to delay court protected bankruptcy and go for 'the gold', so to speak.
But what happens if the next economic bust is near and their hands go out for more in an economy that's even more debt ridden?
With the world beset with terrorists and hot spots.....it's quite possible.
I do know that you have to have financing available to get a company through its reorganization. If that does not exist, when it closes down, they are really closed down.
Of course.......but like Chrysler....Fiat eventually bought them out and production continued.
But GM courted the bailouts as the solution. Essentially, management ran debt to the point there was no equity. Only debt. An incredible case of mismanagement. And politically, the government handing out money to 'save jobs' is good imagery.....for self promotion.
Again, it is suggested that during this period of crisis in the country, there was no private equity to be had.
Federal and large regional banks were certainly 'bust' at the time.
Money was 'out there' but the interest was pegged high risk because of the economic climate and not practical even for day to day operations. Ford weathered the worst of the recession but still had to take loans from the Feds just on that aspect. But those were cyclic, not bailout monies.
I am pissed that bad auto "leadership" has not been punished instead of bailed out,
Agreed, but also there has been the impropriety of gifting the UAW with 1/3 of GM stock while confiscating the equity of the 'old' GM stock holders.
And GM isn't out of the woods......it's stock price in a rising market has shrunk 30% in the last two years. That's not exactly seen as a resounding success in the market place.
With the middle class about to be hit with a higher tax bill, big ticket items are likely to take a hit as the middle class are essentially THE consumer base.
Don't be surprised to see the US auto industry under pressure in the next several years.
Just as we need banks, but all the bad leadership and culture is still thriving on Wallstreet.
It could get worse.....nationalize them.
but I'm happy this industry is still there.
An emotional response.
It's called corporate socialism.
However, I don't think Romney is going to be our economic savior......I think the Bush years and Obama's followup have been too devastating and it's going to take decades of fiscal responsibility to create correction.......and the general public seems more interested in quick fixes.....and let's face it, there is a strong sense of socialism and entitlement growing in the US, and that's not conducive for long range correction at all.
ie....you're fucked no matter who wins the election.....
