Saturday, November 3, 2012
Obama's Own "Let Detroit Go Bankrupt" Destroys Foundation of Campaign
Mitt Romney’s factually-accurate but mischievous Jeep ad baited the Obama campaign into admitting that the charge against Romney (“Let Detroit Go Bankrupt”) on which its campaign is based is false.
Romney’s TV spot: “Obama took GM and Chrysler into bankruptcy, and sold Chrysler to Italians who are going to build Jeeps in China,” is 100% factually accurate. That is its beauty.
Yes, it is true that the Obama administration took GM and Chrysler through Chapter 11bankruptcy. GM and Chrysler shares became worthless and their creditors lost most of their investments. Chrysler was indeed sold to Italy’s Fiat. Chrysler’s Jeep has indeed announced that it intends to produce Jeeps in China.
The Jeep ad brought forth a furious counter attack by Obama operatives, media allies, and self-appointed “independent” fact checkers. In its cry and fury, the Obama juggernaut made a fatal mistake: They admitted that Obama “let Detroit go bankrupt,” as Romney proposed. Staunch Obama supporter, the LA Times, could not bring itself to utter the dreadful word: “Chapter 11.” It chose instead to call what happened at GM and Chrysler “brief bankruptcy restructurings.”
A self-declared (but really democrat) independent fact checker really stepped in it with its dismissal of the nefarious and outrageous (but true) Romney ad:
“It’s also misleading to say ‘Obama took GM and Chrysler into bankruptcy’ without mentioning that Romney, too, advocated a bankruptcy plan. In fact, Romney wrote a 2008 op-ed that said: ‘A managed bankruptcy may be the only path to the fundamental restructuring the industry needs’.” At last, we have the two candidates agreeing on a truly important issue. (FactCheck.org: I guess you would love to take that back).
Note the irony: After three years of “I saved the auto industry and Romney wanted Detroit to go bankrupt” in his stump speeches, the Obama team is using Romney to defend the Detroit bankruptcies Obama orchestrated. You mean Bain capitalist Romney did not want to decimate both Detroit and the Ohio auto industry as you have been telling us? So Obama “saved” millions of auto jobs by following Romney’s advice?
But wait, the LA Times is ready with the standard Obama comeback: Obama forced GM and Chrysler through a government imposed Chapter 11 because “other sources of financing became unavailable during the recession.” Not true at all. The treasury could have provided a neutral bankruptcy court with the small amount of creditor-in-possession financing at no taxpayer risk needed to reorganize GM and Chrysler at a small fraction of the $80 billion it actually spent. With its recognized brand, billion dollar revenues, and inflated costs begging to be pared, GM would have attracted bidders out of the Gazoo, even in 2009.
When cornered with this truth, Obama supporters will play the blame-Bush-game: “Well Bush provided government funds to keep GM and Chrysler running as he passed the baton to Obama. Yes, but then Obama should say: “Bush saved Detroit, not me.” Strange, but I have yet to hear these words.
Although the two candidates are on the same “let Detroit go bankrupt” page, their approaches could not have been more different. Obama used government pressure and blackmail to reward his UAW allies. He knew that the UAW wage and pension contracts could not survive the regular bankruptcy proceeding that businessman Romney wanted. Obama is now getting his payback. Organized labor is his biggest contributor and the organizer of the fabled Obama “ground game.”
Main Stream Media: Where were your fact checkers when Obama was distorting Romney’s “let Detroit go bankrupt”? You seem to notice only when Mitt finally played hardball and reversed the tables.
Where is the Obama apology: “American voters: Forget what I said earlier. Both Mitt and I agree to ‘Let Detroit Go Bankrupt’.”
Paul’s recommendation: Read Good Intentions, By Bob Zeidman, before voting.
go to forbes.com