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View Diary: Wait, WHAT? Now President Obama is Lying About Detroit? Rachel Sets David Letterman Straight (165 comments)

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  •  Lies and Greed (1+ / 0-)
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    eXtina

    There are two issues here, fact checking and what went on in the bailout.  Both Dave and Rachel were right, although I believe that Rachel had the high ground.  The newspaper headline sort of got it wrong when they characterized Romney's position as letting Detroit go bankrupt when his position really was to have Detroit go through bankruptcy.  Two entirely different things. Under the first, the company is out of business, under the second the company is given a chance to save itself.  The reason I say the newspaper sort of had it wrong is that Romney's approach probably would not have worked.  Over my career, I have been involved in representing the government in providing loan guarantees.  Had the government provided loan guarantees, the capital would have been available no matter how bad the rest of the credit markets were.  However, from my recollection, Detroit was nearly out of money.   I doubt there was time to work out a loan guarantee. Romney's approach probably would have failed, resulting in Detroit going bankrupt.  Accordingly, the President did mis-characterize Romney's position, but Romney's approach probably would have resulted in what the President accused him of.  Therefore, Dave was over the top in calling it a lie, which is typical of the MSM not seeing the forest for the trees when it comes to fact checking.  I think Rachael got it right that policy wonks and fact checkers need to cut politicians some slack on oversimplifying complex facts that most people can't grasp.  They can't all be Bill Clinton, who continues to amaze me with his ability to convey complex matters in a straight forward manner.  Still, if I were going to do a rant, it would be that the President continues to put himself in this position by these types of "misstatements" (i.e. "you didn't build this," "5 trillion dollar tax cut").

    As for Romney and his seriously flawed Bain capital approach to the problem, I will add that to my growing list of diaries I want to write.

    A Roosevelt Republican: Honest government, walk softly and carry a big stick, national health care, protect the environment, physical fitness, and kick a** on Wall Street

    by Paradigm Change on Thu Oct 25, 2012 at 08:57:09 AM PDT

    •  Your premise is incorrect (1+ / 0-)
      Recommended by:
      eXtina

      See what a poster above quoted.  The admin searched hard for private capital.  It was not available on any terms.  You really think no one in the administration thought of that, decided to rush in w/ tax money, rather than offer private money a guaranty?

      •  Not sure what premise you are talking about (1+ / 0-)
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        eXtina

        I agree that private capital was not available in the time frame required and so Romney's plan would not have worked.  I was trying to disagree with comments by other posters that I read as saying that credit markets were not completely frozen. Hence my point was about the timing. I will take the hit for the confusion.  

        A Roosevelt Republican: Honest government, walk softly and carry a big stick, national health care, protect the environment, physical fitness, and kick a** on Wall Street. Simple truths that 100 years later we are still struggling to get right.

        by Paradigm Change on Thu Oct 25, 2012 at 12:22:44 PM PDT

        [ Parent ]

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