Romney's Bailout Bonanza

http://www.thenation.com/article/170644/mitt-romneys-bailout-bonanza#

Just read it.

Floridatexan wrote:
http://www.thenation.com/article/170644/mitt-romneys-bailout-bonanza#

Just read it.

So Romney was against the bailout, but yet had stock that caused him to make money from the bailout and you want to blame him somehow....right...lol

[quote="Floridatexan"]
http://www.thenation.com/article/170644/mitt-romneys-bailout-bonanza#

Just read it.[/quote]

I did read it. Everything Seoat claims about Romney is right-on.

Romney is going to loose Ohio and one of his home states, Michigan mainly due to his stance on bailing out the auto industry. The workers know who to thank for the fact that they still have jobs. America knows who to thank for the fact that we still make cars in this country.

Romney tries to paper over his position saying he thought the auto guys should go through a managed bankruptcy but there was no private money available at the time for such a move. Even Bain Capital passed.

Then he has the nerve to claim that the bailout was a hand out to the unions. That's not what this article says. Romney is a wealth creator, not a job creator. He's in this race for the money which is what he values most.


Obama hired Steven Rattner, himself a millionaire hedge fund manager, to head the task force that would negotiate with the troubled firms and their creditors to avoid the collapse of the entire industry. In Rattner’s memoir of the affair, Overhaul, he describes a closed-door meeting held in March 2009 to resolve Delphi’s fate. He writes that Delphi, now in the possession of its hedge fund creditors, told the Treasury and GM to hand over $350 million immediately, “because if you don’t, we’ll shut you down.” His explanation was corroborated by Delphi’s chief financial officer, John Sheehan, who said in a sworn deposition in July 2009 that the hedge fund debt holders backed up their threat with “an analysis of the cost to GM if Delphi were unwilling or unable to provide supply to GM,” forcing a “shutdown.” It would take “years and tens of billions” for GM to replace Delphi’s parts. At that bleak moment, GM had neither. The automaker had left the inventory of its steering column and other key components in Delphi’s hands. If Delphi laid siege to GM’s parts supply, the bailout would fail and GM would have to be liquidated or sold off—as would another Delphi dependent, Chrysler.

Rattner could not believe that Delphi’s management—now effectively under the hedge funders’ control—would “want to be perceived as holding GM hostage at such a precarious economic moment.” One Wall Street Journal analyst suggested that Singer was treating Delphi “like a third world country.” Rattner likened the subsidies demanded by Delphi’s debt holders to “extortion demands by the Barbary pirates.”

Romney has slammed the bailout as a payoff to the auto workers union. But that certainly wasn’t true for the bailout of Delphi. Once the hedge funders, including Singer—a deep-pocketed right-wing donor and activist who serves as chair of the conservative, anti-union Manhattan Institute—took control of the firm, they rid Delphi of every single one of its 25,200 unionized workers.

Of the twenty-nine Delphi plants operating in the United States when the hedge funders began buying up control, only four remain, with not a single union production worker. Romney’s “job creators” did create jobs—in China, where Delphi now produces the parts used by GM and other major automakers here and abroad. Delphi is now incorporated overseas, leaving the company with 5,000 employees in the United States (versus almost 100,000 abroad).