In its GOP
Turns Fire on Obama Pillar, The Auto Bailout, the New York Times engages in a blatant distortion to prop up Obama’s
waning fortunes in Ohio.
The Times rehashes
a November 18, 2008 Romney editorial entitled Let Detroit Go
Bankrupt as follows:
“Mr. Romney wrote an Op-Ed article in the New York Times — given the title by the newspaper “Let Detroit Go Bankrupt.’’ In the
piece Mr. Romney wrote that in the event of a bailout, “You can kiss the
American automotive industry goodbye.”
Notice that the Times
admits it chose the misleading headline (“Let Detroit Go Bankrupt”), which served
as campaign fodder for Obama for the next three years.
Anyone who bothers to read the Romney piece knows he is arguing
against a federal bail out (not
bankruptcy) of GM and Chrysler. A bailout would leave both unable to compete,
and, indeed, you could “kiss the American automotive industry good by.”
Instead, Romney advocated a court-managed Chapter 11 bankruptcy to realign GM and
Chrysler’s costs with competitors to save GM and Chrysler. The
Obama administration agreed. Obama’s car czar pushed GM and Chrysler
through Chapter 11 bankruptcy proceedings. Chrysler was, in effect, sold to
Fiat. The bankrupt “old” GM’s shares
became worthless, and its assets were transferred to a “new” GM owned primarily
by the unions and the federal government.
The Times somehow forgot to tell its readers that Obama agreed with
Romney to “let Detroit
go bankrupt.”
Romney wanted a regular bankruptcy preceding to put in place
“new labor (UAW) agreements to align pay
and benefits to match those of workers at competitors.” Alarmed by his UAW
allies, Obama rushed to strong arm through a political bankruptcy at taxpayer
expense that shortchanged bond holders, preserved union contracts and gold-plated
pensions, and made the federal government the largest single shareholder.
Do not take my word: The Washington Post’s Fact
Check: Letting Detroit go bankrupt rejects Obama’s references to Romney’s wanting Detroit
to go “bankrupt.” I quote:
“This statement is drawn from a headline — ‘Let Detroit Go
Bankrupt’ (chosen by the Times)— on
an opinion article written by Romney for New
York Times. But he did not say that
in the article…Although ‘bankrupt’ often conjures up images of liquidation,
Romney called for a ‘managed bankruptcy.’ This is a process in which the
company uses the bankruptcy code to discharge its debts, but emerges from the
process a leaner, less leveraged company.”
Confronted with this truth, Obama’s supporters can only
claim: “But there was no money for a regular bankruptcy.” Yes, there was. If
the federal government could throw $80 billion at the GM-Chrysler bankruptcies,
it could have put up the small amount of creditor-in-possession funds required
for a regular bankruptcy.
Ohio
remember: Obama’s political bankruptcy
of GM did not rescue jobs. It rescued
union pay and benefits.
published in forbes.com
published in forbes.com
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