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Neal Barton's POV

Bankruptcy, Good! Bailout, bad!

POV

POSTED: Thursday, October 25, 2012 - 6:52pm

UPDATED: Monday, November 5, 2012 - 6:54pm

In the middle of this red hot presidential race, a lot of mud had been thrown.

One of the most outlandish tales has been that Mitt Romney wanted the auto industry to go belly-up.

He wanted it to go bankrupt. If you know something about business, you know there are several types of bankruptcy.

There is liquidation which is fatal. That is not what he was talking about. He was talking about was restructuring.

I read the November 18, 2008 op-ed he wrote today. First of all, The New York Times Editor wrote the headline. "Let Detroit go bankrupt." But romney makes a compelling argument.

The points he makes are let's fix the mess, not blow it up. Like a chapter 11 bankruptcy. The kind that gives you some room to manuver and the government actually backup your loans.

The Romney piece clearly states a structure's bankruptcy would help employees. Stop the money bleeding.
Make you cut unnecessary costs.

Look at the horrible pension deal which car executives made generations ago that helped strangle Detroit financially. Make those getting protection cut expenses of making cars.

Romney's idea would be get rid of management that flew the plane into the side of the mountain. That's populism I can't believe some union members would like.

Romney's idea wasn't just cut Detroit a big check. It was to restructure and get out of the hole with a plan that was fair for all.

I don't know if the president ever read the editorial.

But someone in his campaign staff must have just read the headline and thought that would make great political red meat.

Thats my point of view, what's yours?

You can email me at pov@ketknbc.com or facebook me at KETK Neal Barton.

 

Comments News Comments

Economy Statistics > Percent below poverty level (most recent) by state
# 47 New Jersey: of 50 states. WOW ONLY 3 STATES BETTER OFF THAN NEW JERSEY A UNION STATE and Texas is NOT one of them. GUESS THOSE UNION JOBS MAKE THE ECONOMY IN NJ MUCH BETTER AND THE NON UNION JOBS HAVE MADE THE ECONOMY WORSE IN ALABAMA A RIGHT TO WORK FOR LESS STATE.

Economy Statistics > Percent below poverty level (most recent) by state
# 9 Alabama: out of 50 states. WOW ALABAMA IS ONE OF THE 10 POOREST STATES IN AMERICA and a RIGHT TO WORK FOR LESS STATE.
http://www.statemaster.com/graph/eco_per_bel_pov_lev-economy-percent-bel...

IF CORPORATE CEOs, CFOs and MANAGERS NEGOTIATE CONTRACTS FOR MILLIONS IN BENEFITS AND WAGES WHY SHOULDN'T THE WORKERS ON THE FRONT LINE?

jp is also in favor of a "RIGHT TO WORK FOR LESS " POLICY FOR AMERICAN WORKERS.
If you are an American worker according to Charles, JP and Sparrow and you expect to be paid more than .97 cents per hour and Benefits, you are Un-American because you are killing American Corporations and American JOBS !!

No, it's the unions killing American jobs. Your rants are more Marxist anticapitalism enslave worker to a permanant poverty class then a defend the workers rant. yes, workers have the right to join a union, but they also have the right not to join. They have the right to determine their own success and not have to bow to the union leadership.

And to think that a union wants to kill American jobs is just pure STUPIDITY, Unions would be killing themselves if they were in the business of killing jobs. It is the non union workers and Corporations who are the job killers in America for cheap labor in foreign nations.They are driving down wages in America. These corp. are Anti American and Anti American worker. Guess we should all work for the same 97 cents an hr. the China workers do or less, right jp?

You are correct they do have a right not to join but in turn they also have the right NOT to be paid the same as those who have joined and negotiated a contract with higher wages and benefits. a non union worker in a majority union work place has the same effect as an illegal immigrant working for cash at a cheaper price. they undercut the economy.

Remember that the BOND HOLDERS( the main holders of the Co) got NOthing!!! Nothing!!!

This is illegal. How Obama swung it I do not know. This is a real DISTRIBUTION of wealth. I am glad I was not a bond holder & that I was not a widow depending on what my husband spent his life for thinking I was safe. Gads.

Better read the courts' ruling. It was the court not Obama that set the terms of the bankruptcy. You do not have a clue about how our government works in accordance to the U.S. Constitution do you?

What TNN was saying is that it was a payoff to the union leadership, for their past and continuing support. Helping was just a side effect, not intent of the payout. News flash snydergal. Detroit is and has been dying for decades now. Industries are leaving, though some have grown, and the population is half what it was in the '70's. Murder victims are being dumped in streets and parking lots along side the mountains of trash.

good grief, jp...let's see...no one is paying off union leaders...Detroit auto makers and the thousands of suppliers for the auto industry is back and on top...if industries are leaving, begin looking at willard's bain capital contribution to closing plants and shipping jobs to China...as for murder victims, you are a sick puppy for injecting that in this conversation. How do you live with yourself, your bile, your hatred, jt?

Aw, did I tarnish the shining example that is Detroit of what goodness and prosperity unions and leftist ideals create? Let's see, tax payer money covers a debt instead of coming out of corp. and union pockets, note, leaving out non-union pensions (so much for protecting the middle class). So now money that should have been used to cover pensions can now be donated to Democrats. Again, not caring for the non-union middle class.

That is right EVERY AMERICAN SHOULD BE PATRIOTIC AND WORK FOR .95 CENTS AN HOUR EXCEPT FOR THE CEOs. No these American corporations who move the manufacturing portion of the business to foreign countrie for .97 cent per hour labor & wants to sell their products in the USA where they make almost all of their profits should be more patriotic. LETS PUT TARIFF ON ALL FOREIGN MADE PRODUCTS & WATCH THE JOBS COME BACK. "FAIR TRADE NOT FREE TRADE"

willard/bain capital would have licked it's collective chops had Detroit fallen...don't all you moronic souls know that willard and crew would have swooped in and bought machinery and buildings pennies on the dollar and eventually sold it to foreign conglomerates for a fortune? You all will believe anything without using the brain cells God gave you...if willard prevails, you who think you can rise to his elitist 1% status WILL fail with the rest of the middle class and the poor..new reality!!

So what you are saying Tnn, is that you are against American workers and favor a Right To Work For Less policy?

The "bankruptcy" could be a Chapter 11. It also could have got rid of the HUGE ,debilitating pension costs that are bankrupting everybody( the Life Guard in Cal. that will get $215 ,000 yrly !). It makes the bills become more managable.Romney has said on TV lately that he did NOT want the Car co. to go belly-up, but a"managed" bankruptcy( like Chapter11).The way they are now, they still have the pension costs which might still make them go bankrupt again.

Spar, you do not think that those who risk their lives to protect the American citizens should receive any benefits including the pension that is part of a contract? Guess you also think pensions for soldiers should be gotten rid of too....right?

The auto bail out was actually a bail out of the auto unions. Take a long look at how they fared and how these same unions now fund the Obama election campaign. Ohio is a state that has seen the effects of the big "auto bail out" of Americans hard earned taxes being used to foster union activities.

Talk is cheap tenn, and means nothing unless you have actual Factual documentation to back it up. Where in the court rulings or in the stimulas passed by Congress is it written or directs any cort or corporation or government agency to bail out of the auto unions? Please provide a link to the documents that back up what you are saying or appear to be nothing more than a true liar.

Open your eyes, tenn! Take a minute to look at the hundreds of millions of dollars the koch brothers, adelson, Texas oil tycoons, mega-rich corporations, off-shore secret donors, etc., have kicked into willard's anti-American, anti-democracy campaign... more money than all middle class Americans put together could ever earn...people like you suffer from extreme cases of faux news stupidity that can't be cured...you're doomed with the rest of us if willard wins...just plain stupid! OBAMA 11/6/12

http://www.mediaite.com/tv/fact-check-president-obama-jawbones-mitt-romn...
Stop lying by trying to rewrite history. Romney said what he said about Detroit, and no matter how much you try to twist the facts, you can't. Romney is not an idiot, but rather a very shrewd businessman. Read the link and seek the truth. The lives that have died for this country should be honored by public figures, including journalist, who serve with honor, integrity and truth.

Romney's suggestion would work. The two peceived evils in it though are that it would require concessions from the unions (however bankruptcies have been used in the past to bust unions) and the very fact it would work. Many companies have immerged from bankruptcy stronger. These socialist federalists cosider success as one of the greatest evils. The bilout of the unions was no doubt a way to launder tax dollars to the Obama campaign and by support from the members.

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