With the GOP presidential primary in full swing here in Michigan
Romney maintains that GM should have been allowed to go into
what he calls, a “structured” bankruptcy and everything would have turned out
OK without taxpayer bailout dollars.
I happen to agree with most Republican financial dictums and
fiscal common sense tells us that if a company is unsustainable in its present
form because of management failure, the proper step is bankruptcy
reorganization so it can get back on track.
GM and Chrysler had screwed up badly in not anticipating
future situations (unlike Ford) and deserved what happened to them BUT…
President Bush did not want the collapse of the U.S.
Economists say that are structured bankruptcy for GM and
Chrysler would not have been possible because they did not have enough money to
survive the bankruptcy process; a “bridge loan” was needed and that consequently
was provided by the American taxpayers.
Today Chrysler has paid back all bailout money and GM posted
a record profit which saw its shares go up which will enable our government
(taxpayers) to sell its remaining shares in GM at maybe a profit and then all
bailout money will have been re-paid.
Democrats will jump on the notion that not bailing out GM
and Chrysler would have cost thousands of jobs (union jobs) while with the
taxpayer’s help, GM auto workers will be receiving a $7,000 bonus this year
which will help the economy plus with taxpayer’s help, thousands of jobs were
preserved.
Obviously hindsight is much more accurate and we all have to
now agree that the auto bailout worked very well.
The Republicans cannot go against Tea Party dogma that says
all taxpayer funded bailouts are bad because they do not allow capitalism to
work like it is suppose to and so they are stuck in that position and can only
feebly defend themselves on this issue.
Santorum seems more
likely to win Michigan because of his
values/religion position that will attract the kooks in Michigan
It will be humiliating if Romney does not win Michigan
So right now, Obama is looking like a winner…
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