Skip to main content

View Diary: Same BS, different day: Mitt Romney still not admitting he was wrong on Detroit (95 comments)

Comment Preferences

  •  We'd be seeing Chinese Chevys (0+ / 0-)

    and Jeeps from India now if we followed Romney's plan.  There was no (Zero, nada, zilch) private capital of the scale required that could have made this happen.  Even with public backing, there just was no private option.  Not that there wouldn't have been some interest, but nobody could make it happen even if they wanted to.  If the bailout didn't happen, GM and Chrysler were not going to have money to even pay their employees for much longer.

    One thing that needs push back is this notion that the GOP pushes that the Democrats wanted to bailout these companies because we are socialists.  This is nonsense.  Nobody WANTED to do that.  It was an absolute last resort.

    The only other option was liquidation.  Being that there was already a glut of auto manufacturing facilities in the US, very few of the actual auto factories would have even found buyers.  At best, some would be sold for the real estate value and be subdivided and resold for other purposes. A number would just sit and rot like a lot of the old plants in and around Detroit now.  The real assets would be the trademarks and intellectual property owned by GM/Chryco.  The Chinese have been shopping for modern automakers in the last few years.  GM was shopping the Hummer brand to a Chinese company before the collapse and they love Buicks in China.  Volvo was purchased by a Chinese company in 2010.  An Indian company bought Land Rover/Jaguar in 2008, just prior to the financial collapse.  I have no doubt the classic pieces of Americana (Chevy, Jeep, etc) would end up in foreign hands.  Not only does that just seem 'wrong', but the reason the Chinese and Indian companies are looking to buy modern automakers is that there current products are not competitive in the world market.  It would then lead to further damage to American manufacturing as they could undercut prices with products that were competitive quality-wise.

    •  What Managed Bankruptcy Means to Mitt (0+ / 0-)

      "Managed bankruptcy" is the vocabulary of a vulture capitalist.  To them managed bankruptcy means "strip it and flip it."  Pare down a financially distressed company to its bare essentials, fire all the employees, reject all the pension contracts, flame all the creditors, destroy the value of any "old" equity and then sell off any hard assets and intellectual property rights with market value to the highest bidder in a highly controlled sale under section 363 of the Bankruptcy Code.  This happens every day in Bankruptcy courts all over the country and it is what Bain does to make money, usually after getting control of the assets under foreclosure conditions.  Most people don't really understand what Romney is saying when he uses the term but folks who work in Bankruptcy know exactly what he means.

Subscribe or Donate to support Daily Kos.

  • Recommended (128)
  • Community (60)
  • Media (32)
  • Elections (32)
  • Trans-Pacific Partnership (30)
  • 2016 (29)
  • Law (28)
  • Environment (28)
  • Civil Rights (26)
  • Culture (24)
  • Barack Obama (24)
  • Hillary Clinton (23)
  • Republicans (22)
  • Science (21)
  • Climate Change (21)
  • Labor (19)
  • Economy (19)
  • Josh Duggar (18)
  • Jeb Bush (18)
  • Bernie Sanders (17)
  • Click here for the mobile view of the site