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View Diary: A Bankruptcy Lawyer (Me), Corrects Factcheck.Org On the Auto-Bailout (Updated, re Private Funding.) (157 comments)

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  •  According to washpo (0+ / 0-)

    (to Pete Cortez--discussion about halfway up--and all the others with the magic bank theory)

    From the Washington Post in their fact check:

    "Here’s how the bipartisan Congressional Oversight Panel, in a unanimous finding, framed the issue in a January 2011 report: “The circumstances in the global credit markets in November and December 2008 were unlike any the financial markets had seen in decades. U.S. domestic credit markets were frozen in the wake of the Lehman bankruptcy, and international sources of funding were extremely limited.”

    Now, I simply don't know the absolute facts regarding GM private financing, but assuming some magic bank provided magic financing, the terms would have been so horrific that GM would have been likely 'bained' out of existence.  And if it wasn't 'bained' out of existence by some miracle (now we're Mitt talkin') the employees and the associated local economies would have 'bained' and suffered greatly.  

    All this to create more moral hazard for another bank that so irritated a large segment of the population, regarding bank bailouts, that the tea party was born.  


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