OK I don't write that many Diaries, and I FUCKED up badly by jumping the gun on my last one about Trump, I was more than a little embarrassed. I honestly believed it was something Trump would stoop to, and I still believe he would, but bottom line I was wrong.Mitt Romney has not only denied he advocated for bankruptcy for the USA car manufacturers, NO Mitt Romney has gone far beyond that and brazenly taken credit for the recovery suggesting this was his plan from the beginning. So I thought I would describe the recovery under a Romney plan as I understand it. For the sake of this Diary I’ve taken the Liberty of calling the private equity Administrator Bean Capital.
But hell I put my heart in to this and I believe I'm right this time, and the point I'm making is very valid, maybe it doesn't deserve the rec list but JEEEZ I would have loved some replies to at least point out where I was wrong.
I know this topic has been done to death, and the hour is very late. Still this is my perception of what has transpired, and not being an economic genius I would gladly stand corrected on anything I’ve suggested.
This is how I see Romneys plan, it requires a plethora of assumptions as you will see
Lets assume that Bean somehow convinced a bank somewhere on the planet to lend them the 100s of billion of $$ that were required to restructure and re-tool the auto industry, let us assume they somehow miraculously achieved this feat despite the fact that banks were note lending a dime to anyone, not even to each other, banks had shut shop, so you will need to use your suspension of disbelief here.
Now, lets us assume that Bean having looked at the state of the auto industry decided that despite the fact that these companies were bleeding cash and Bean could make a lot more money by bankrupting these companies and selling the assets, despite this, they decided to go against all their established business practices and gamble that spending all the 100s of billions of dollars (they’d miraculously borrowed) on re-tooling and restructuring these companies would pay off. I know it’s a stretch but bare with me.
We must also assume that in saving them the companies the labor force would remain in the USA. We must assume that they did not look at outsourcing most of the work to China or India as is also their usual modus operandi
There is of course one last assumption that must be made if this is to succeed on anywhere near the way President Barrack Obamas audacious plan has succeeded. you see the Prez did not charge any fees. If there were fees the fantasy loan would need to be much larger, am I wrong ?So we have them somehow borrowing money from a bank somewhere in Fantasy land, and we would have a private equity firm going against all their profit driven interests to save a few companies and NOT outsource the labor. A benevolent patriotic private equity firm looking out for the interests of their country over their shareholders if you will, it’s very similar to a flying pig.