Bankruptcy, Good! Bailout, bad!
POSTED: Thursday, October 25, 2012 - 5:52pm
UPDATED: Monday, November 5, 2012 - 5:54pm
Tyler, TX — 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?