Michigan, are you listening? Debunking Obama’s Bankruptcy Spin on Auto Bailouts

Obama’s auto bailout ‘success’ is a disaster for taxpayers.

Like a toddler who likes to continually jabber a new phrase, Obama keeps blabbering “Romney said let Detroit go bankrupt! Romney said let Detroit go bankrupt!”

Here’s what our prattling President doesn’t want Americans to know:

Deceitful, smoke-’n-mirrors Obama ADOPTED Mitt Romney’s idea of a managed bankruptcy for American car makers. BUT, Obama’s mishandling of the process has proven very costly.

Romney Press – Oct 16, 2012:

Mitt Romney Will Help Our Auto Industry Become Stronger And More Competitive

As a Michigan native and the son of a car guy, Mitt Romney has always believed that a strong auto industry is an essential component of the nation’s economy. He has a plan that will help the auto industry move forward into a new era of innovation and dominance.

  • Domestic Energy Production That Aids Manufacturing: We are on the cusp of a manufacturing renaissance in the United States, and it will be made possible by an abundant supply of cheap, reliable energy within our borders. Mitt Romney will have a true all-of-the-above strategy that includes coal, natural gas, oil and other resources.

  • Trade That Works For Our Auto Industry: Our workers make the best cars in the world. We must develop markets abroad where our cars can be sold. Mitt Romney will open new markets to American automakers far more aggressively than this President has.
  • Stand Up To China And Level The Playing Field: Mitt Romney will stand up to countries like China that don’t play by the rules. Starting on day one, Mitt Romney will make clear to China that they must respect the intellectual property of American manufacturers and open their markets to American products.
  • Lower Our Corporate Tax Rate To Boost Competitiveness: Mitt Romney will reduce the corporate tax rate, so that our carmakers can compete on a level playing field both at home and around the world, and can afford to invest more in breakthrough products. He will also stop the foolish practice of imposing an extra tax on our automakers when they sell cars overseas so they can reinvest the profits here at home.
  • Get Government Out Of The Car Business: President Obama has told Detroit what kind of cars to build, implemented extraordinarily onerous regulations that will drive up the cost of each car by thousands of dollars, and to this day owns more than one quarter of General Motors. Mitt Romney will get the federal government out of the auto industry and eliminate regulations that distort the market and drive up costs.
  • A Reminder – Mitt Romney supported a managed bankruptcy process for our automakers, which is what President Obama ultimately agreed to support:

    Months After Taking Office, President Obama Finally Arrived At The Conclusion That Managed Bankruptcy Was Preferable To His Initial Strategy. “The Obama’s administration’s leading plan to fix General Motors Corp. and Chrysler LLC would use bankruptcy filings to purge the ailing companies of their biggest problems, including bondholder debt and retiree health-care costs, according to people familiar with the matter. … President Barack Obama’s task force has told both companies that the administration prefers this route … rather than the prolonged out-of-court process that has thus far frustrated administration officials.” (The Wall Street Journal, 3/30/09)

    The Obama Administration Ultimately Found Bankruptcy To Be The Only Way Forward. “The administration says a ‘surgical’ structured bankruptcy may be the only way forward for GM and Chrysler, and President Obama held out that prospect Monday. ‘I know that when people even hear the word ‘bankruptcy,’ it can be a bit unsettling, so let me explain what I mean,’ he said.” (The Wall Street Journal, 3/30/09)

    What did Governor Romney NOT support? Labor Union handouts, giving American companies to foreign owners, ill-considered dealership closings, and keeping government in the car business:

    President Obama’s Handling Of The Bailout Gave The United Auto Workers Union A Majority Ownership Stake In Chrysler. “The Obama administration’s decision to bail out Chrysler gave the union trust what was initially a majority ownership position of 55 percent of its shares.” (Reuters, 6/3/11)

    The Obama Administration Handed Over Control Of Chrysler To Fiat, An Italian Automaker. “Chrysler LLC, for years America’s third-biggest automaker, survived perhaps the most dire of its periodic near-death experiences in 2008 and 2009, when the federal government forced it into bankruptcy, pumped in $10 billion in taxpayer funds and put it under the control of the Italian automaker Fiat, with the auto workers union as the company’s biggest shareholder.” ((The New York Times, 7/30/12)

    President Obama’s Auto Task Force Pressed GM And Chrysler To “Close Scores Of Dealerships Without Adequately Considering The Jobs That Would Be Lost.” “President Obama’s auto task force pressed General Motors and Chrysler to close scores of dealerships without adequately considering the jobs that would be lost or having a firm idea of the cost savings that would be achieved, an audit of the process has concluded.” The New York Times, 7/18/10)

    The Obama Administration “Contributed To The Accelerated Shuttering Of Thousands Of Small Businesses” And Potentially Added “Tens Of Thousands Of Workers” To The Unemployment Lines. (CNN Money, 7/19/10)

    General Motors Now Wants The Government To Sell Its Stake In The Company, But The Obama Administration Is Resisting. “The Treasury Department is resisting a push by General Motors Co. to sell the government’s entire stake in the auto maker – the latest source of tension between two unlikely partners thrust together at the depths of the financial crisis. U.S. taxpayers kept the nation’s largest auto maker by sales afloat with a $50 billion bailout in 2009 and now own 26.5% of the Detroit company. But GM executives have grown increasingly frustrated with that ownership and the stigma of being known as ‘Government Motors.’” (The Wall Street Journal, 9/17/12)

    Taxpayers Are Taxpayers Are Currently Projected To Lose More Than $25 Billion On The Bailouts Of Auto Industry. (U.S. Treasury Department, 8/12)

    Now, you have the truth.

    Michiganders, help Mitt Romney and Paul Ryan obtain your 16 electoral votes. CAll NOW to get started. Readers, you, too, can help.

    By Lisa Benson



    Follow Jayde Wyatt on Twitter @YayforSummer

    Under President Obama, GM and Chrysler DID go Bankrupt – Mitt Would’ve Saved US Billions

    There is a lot of talk these days about the auto industry and American manufacturing, and rightly so. These are extremely important industries for our country. Afterall, Romney was the son of the late auto executive, George Romney, who turned around American Motors Corp. and made the company a major player on the world stage of auto manufacturing.

    Mitt Romney has always expressed his great fondness for the auto industry as a direct result of his upbringing with his father. Mitt Romney is a self-described “car nut” and the notion that he wouldn’t have supported the auto industry through bankruptcy is simply preposterous.

    Did Mitt Romney really say “Let Detroit Go Bankrupt”?

    First, a quick but important side note. Mitt Romney didn’t actually write the title “Let Detroit Go Bankrupt” for his column in the New York Times, the editors at the paper did. Democrats like to pretend that Romney actually said those exact words but he did not.

    Second, and more importantly, Romney knew that bankruptcy was the only way for General Motors to get rid of its excessive costs. In fact, Barack Obama often claims that he “saved the American auto industry” but even Barack Obama required the company to go through bankruptcy. Both Barack Obama and Mitt Romney knew that GM’s bankruptcy was inevitable and both men required GM to go through bankruptcy.

    Americans are smart enough to realize that Mitt Romney, because of his upbringing, has a great love for the American auto industry and he would have supported it as it went through the bankruptcy process. The people of Michigan and Ohio are smart enough to know that Barack Obama pretends that he did something totally different from Mitt Romney but Obama also required GM to go through bankruptcy. The only difference is that Mitt Romney knew that bankruptcy was inevitable a year or so before Obama did.

    It is interesting to note that George W. Bush actually started the auto bailouts and then Barack Obama expanded them.

    What about manufacturing and how it relates to the auto industry?

    The root of America’s difficulties in manufacturing come from a single source: China. It is widely known by both Democrats and Republicans that China is cheating on trade. China is intentionally suppressing the value of their goods and services so that they can undercut American industries by selling goods at a lower cost than American companies. China’s leaders have publicly admitted as much.

    In 2007, Barack Obama promised that he would stop China’s predatory and unfair policies saying: “China has manipulated its currency for years in order to gain an unfair advantage over the United States on trade. Unfortunately the Administration has failed to effectively challenge or change China’s behavior.”

    Another broken promise by Barack Obama. Obama’s soaring campaign rhetoric so rarely translates into actual deeds done. Unfortunately, Obama’s inability to address China has led to American manufacturing’s continued struggles against an unfair competitor.

    Mitt Romney, on the other hand, has said that on his first day in office, he will label China a “currency manipulator.” His first day. Labeling China a currency manipulator is the strongest step America can take to help level the playing field against China and force them to change. Successfully labeling China as such would require the World Trade Organization to take action against China and its policies.

    Obama has had four years to change China. He has been unable to bring about the change he promised. Mitt Romney has vowed to take the strongest step possible against China in order to help America’s manufacturers, including manufacturers associated with the auto industry.

    Romney Ad: “Obama Gives Taxpayer $$ to Big Donors, Watches Them Lose It”

    In an unprecedented action from a sitting president, President Obama lurched straight out of the campaign gate a few weeks ago with a barrage of negative ads against Mitt Romney. At every opportunity, he headbutts private equity/venture capitalists and Romney’s 80% success rate at Bain Capital. Obama says this is his reelection focus. (Don’t look America… Obama raised funds from a private equity group he previously attacked.) The once-resounding Obama message of hope and change isn’t even whispered anymore.

    You know it’s bad when even left-leaning ‘Face the Nation’s’ Bob Schieffer notices Obama’s negativity.

    Romney’s new web ad, released today, shows he’s noticed, too. It targets the real cause of Obama’s headaches – his borrow-and-tax policies which have lead to… nowhere: Solyndra, First Solar, ECOtality, and SunPower.

    Not Even Half

    The facts, Ma’am:

    The Obama Administration Loaned Over Half A Billion Dollars To Solyndra – Which Later Went Bankrupt And Laid Off 1,100 Employees.

    “In a blow to the Obama administration’s efforts to create green jobs, solar-cell maker Solyndra announced Wednesday that it will close its remaining Fremont factory, layoff its 1,100 employees and file for bankruptcy. The news marked an abrupt end for a company once considered among the most innovative in a fast-changing industry. The bankruptcy also represents a high-profile failure for a federal stimulus program that gives loan guarantees to green-tech manufacturers. Solyndra was the first company to win one of the guarantees, receiving $535 million in 2009 to build its second factory in Fremont less than a mile from the company’s original plant.” (David R. Baker and Carolyn Said, “Solyndra Closes Fremont Plant – Stimulus Hopes Dim,” San Francisco Chronicle, 9/1/11)

    The Obama Administration Provided More Than $3 Billion In Loan Guarantees That Benefitted First Solar – A Company That Recently Announced Layoffs And Hit Record Lows In Stock Value.

    “First Solar. The Obama administration provided First Solar with more than $3 billion in loan guarantees for power plants in Arizona and California. According to a Bloomberg Businessweek report last week, the company ‘fell to a record low in Nasdaq Stock Market trading May 4 after reporting $401 million in restructuring costs tied to firing 30 percent of its workforce.’” (Marc A. Thiessen, “Forget Bain — Obama’s Public-Equity Record Is The Real Scandal,” The Washington Post, 5/24/12)

    After Receiving Approximately $126 Million In Taxpayer Money, ECOtality Has “Incurred More Than $45 Million In Losses.”

    The Obama administration gave ECOtality $126.2 million in taxpayer money in 2009 for, among other things, the installation of 14,000 electric car chargers in five states. Obama even hosted the company’s president, Don Karner, in the first lady’s box during the 2010 State of the Union address as an example of a stimulus success story. According to ECOtality’s own SEC filings, the company has since incurred more than $45 million in losses and has told the federal government, ‘We may not achieve or sustain profitability on a quarterly or annual basis in the future.’” (Marc A. Thiessen, “Forget Bain — Obama’s Public-Equity Record Is The Real Scandal,” The Washington Post, 5/24/12)

    ECOtality Is Currently “Under Investigation For Insider Trading.” “Worse, according to CBS News the company is ‘under investigation for insider trading,’ and Karner has been subpoenaed ‘for any and all documentation surrounding the public announcement of the first Department of Energy grant to the company.’” (Marc A. Thiessen, “Forget Bain — Obama’s Public-Equity Record Is The Real Scandal,” The Washington Post, 5/24/12)

    “A Company Called SunPower Got A $1.2 Billion Loan Guarantee From The Obama Administration…”

    “This is just the tip of the iceberg. A company called SunPower got a $1.2 billion loan guarantee from the Obama administration, and as of January, the company owed more than it was worth.” (Marc A. Thiessen, “Forget Bain — Obama’s Public-Equity Record Is The Real Scandal,” The Washington Post, 5/24/12)

    In 2011, SunPower Lost More Than Half A Billion Dollars And Announced Layoffs.

    “Now, San Jose’s SunPower, another solar panel maker, has hit rough waters — a $370 million quarterly loss — which will trigger layoffs and the exit of two top executives. SunPower CEO [Werner] thinks a turn-around won’t happen overnight. ‘We see this as a year to maybe two years, and then we see significant demand, a resumption in significant demand growth,’ Werner said. But the slowdown in sales and a flood of low-cost panels coming in from China have extended SunPower’s losses this year past a half-billion dollars.” (David Louie, “CA’s Solar Industry Continues To Show Signs Of Distress,” KGO-TV [San Francisco, CA], 11/4/11)

    ► Does Fisker ring a bell? (updated)

    Does the Fisker investment seem like a terrible investment? Absolutely. Is this a clear cut case of “crony capitalism” as Romney says it is? Let’s investigate.

    Read about it here.

    “$16.4 Billion Of The $20.5 Billion In Loans Granted As Of Sept. 15 Went To Companies Either Run By Or Primarily Owned By Obama Financial Backers.”

    “In the 1705 government-backed-loan program, for example, $16.4 billion of the $20.5 billion in loans granted as of Sept. 15 went to companies either run by or primarily owned by Obama financial backers-individuals who were bundlers, members of Obama’s National Finance Committee, or large donors to the Democratic Party.” (Peter Schweizer, “Obama Campaign Backers And Bundlers Rewarded With Green Grants And Loans,” Newsweek, 11/12/11)

    The Energy Department’s Inspector General Found That Contracts Were Steered To “Friends And Family.”

    “The Department of Energy’s inspector general, Gregory Friedman, who was not a political appointee, chastised the alternative-energy loan and grant programs for their absence of ‘sufficient transparency and accountability.’ He has testified that contracts have been steered to ‘friends and family.’” (Peter Schweizer, “Obama Campaign Backers And Bundlers Rewarded With Green Grants And Loans,” Newsweek, 11/12/11)


    See the new ad from American Crossroads below the fold.

    (more…)

    Anyone-But-Romney Force Reveals Political Bankruptcy / Mitt, Paul Ryan, & Milwaukee

    Governor Mitt Romney and Congressman Paul Ryan (R-WI) take a break from campaigning to grab a bite to eat at Culver's restaurant in Johnson Creek, Wisconsin. 4/1/12
    (Photo/Justin Sullivan/Getty Images)

    The Romney/Ryan team continued yesterday taking their timely message to Wisconsinites. They were invited to hold a town hall meeting at Moore Oil Company in Milwaukee. Here’s video of The Gov and Congressman Ryan:

    Later in the day, at the same venue, Romney and Ryan were interviewed by FOX News’ Greta Van Susteren:



    We’re at a halfway point…

    Today’s elections in Wisconsin, Maryland, and D.C. mark the halfway point in the race for delegates. Yesterday, Governor Romney picked up three more delegates… Coincidentally, he’s now halfway to clinching the GOP nomination:

    The former Massachusetts governor inched up to 572 delegates on Monday _ exactly half the 1,144 needed _ after the Tennessee Republican Party finalized delegate totals from its March 6 primary. Results in several congressional districts were too close to call on election night, leaving three delegates unallocated.

    Romney got all three delegates. He also picked up an endorsement from a New Hampshire delegate who had been awarded to former Utah Gov. Jon Huntsman. Huntsman dropped out of the race in January and endorsed Romney.
    [...]
    According to the Associated Press tally, Romney has more than twice as many delegates as Santorum. Santorum has 272 delegates, followed by former House Speaker Newt Gingrich with 135 and Texas Rep. Ron Paul with 51.

    Romney has won 54 percent of the primary and caucus delegates so far, putting him on pace to clinch the nomination in June. Romney could substantially add to his lead Tuesday, when 95 delegates will be at stake in three primaries, in Wisconsin, Maryland and the District of Columbia.

    Current reality:

    Santorum, who has won 27 percent of the primary and caucus delegates so far, would need 74 percent of the remaining delegates to clinch the nomination before the national convention. Gingrich would need 86 percent and Paul would have to win nearly all of them, which won’t happen because most states award delegates proportionally.

    Anyone but Romney? Martin Sieff (FOX News Opinion) wrote yesterday that he is “sick of Santorum:

    (more…)

    Aaarrh! Did Captain Mitt Pillage & Loot Companies?

    With so many ridiculous accusations aimed at Mitt by his rivals in both the Republican and Democratic parties, it takes all of us to stay on top of them. Mitt’s rivals keep throwing stuff against the wall hoping something will stick, and hopefully this article will be useful (and humorous) to you should anyone accuse Mitt of putting a bunch of companies into bankruptcy and laying off workers for profit. Mike Sage from America Needs Mitt has uncovered a letter from one of President Obama’s servants that I think all of you will enjoy. With his gracious permission, we have included all of it below. If you need a little help speaking like a pirate, watch this clip. (Beware, the language can be a little saucy.)

    Secret Message by Courier to His Majesty, King Obama the First, from His loyal spy, Picaroon Rumfustian, upon the Privateer Ship Bain:

    Forgive me fer sayin’ so, Your Majesty, but I be thinkin’ ’tis better to attack the evil brigand, Captain Mitt, where he is weak, rather than where he be strong. A broadside on Captain Mitt’s business record ’tis like attacking the tip of a pirate’s cutlass with your forehead.

    In port, th’ town criers be sayin’ that Captain Mitt be a corporate raider who used leveraged buy-outs to “loot resources, lay-off thousands, and drive companies into bankruptcy.” If that be th’ same as makin’ ‘em all walk th’ plank, then I be obliged to say, ’tis unlikely, Sir. Here be the four bankruptcies that ye be wantin’ Captain Mitt and the brigands of the Privateer Ship Bain t’ be answerin’ fer:

    1. American Pad and Paper (Ampad) – bought by Bain in 1992, went bankrupt in 2000. (8 years later)
    2. Stage Stores – bought by Bain in 1988, went bankrupt in 2000. (12 years later)
    3. GS Industries – bought by Bain in 1993, went bankrupt in 2001. (8 years later)
    4. Dynamic Details – bought by Bain in 1997, went bankrupt in 2003. (6 years later)

    Now, Sir, I hopes ye don’t think me a scurvy foul blaggart fer sayin’ so, but methinks that four failures out of over 400 investments by Bain be an amazin’ success rate that any venture capitalist would be willin’ to kill fer. Fer the sake of argument, if we be assumin’ fer the moment that their 99% success rate be just a cover for their nefarious goal o’ deep-sixin’ these four companies, then there be a question as obvious as th’ mizzen-mast: Why did they wait an average of 8 years before doin’ so? Why not start the corporate rapin’ and pillagin’ immediately after the boardin’ party took over?

    Avast! All four of th’ companies were sent to Davey Jones’ locker in th’ same three-year period! I’ve heard scuttlebutt ’round the poopdeck that March 2000 were th’ beginnins’ of the foul “Dot Com” bubble crash, which wert followed up in 2001 by th’ 9/11 attacks, which sent our economy even further into dangerous waters. ‘Tis well-known that the severe recession that began in early 2000 didn’t end until mid-2003. ‘Tis truth, that for the Bain buccaneers, this economic downturn could have provided perfect cover for their diabolical plot to make these firms walk the plank into insolvency! Mayhaps, this ought be th’ story ye should stick to, as there may well be simpletons and drunks who’ll believe it, iffin ye be lucky!

    Sir, pay nought attention to the fact that Bain specialized in buying troubled companies, many of which would’ve been well on their way to the sea bottom without any help whatsoever from the crew of the Bain.

    And, ne’er ye mind that any investment firm that developed a reputation for scuttling the companies it invested in would last ‘nay longer than a peg-legged swimmer in a school o’ sharks, that be fer sure.

    Belay any thought that the Securities and Exchange Commission regulates and must approve many mergers and acquisitions of this sort, or that injured partners and shareholders would have hauled Captain Mitt and the crew of the Bain into court to be keel-hauled, drawn, and quartered if there be treachery there.

    Oh, and Lest ye be thought daft, Sir, ye might also want to consider the fact that Captain Mitt stopped bein’ th’ Skipper o’ the Bain in 1999, long before those sinkings occurred, just in case some fact-checkin’ lily-livered bilge-rat should ask.

    Lastly, Sir, I shan’t be sendin’ any more dispatches to ye, as I be resignin’ me commission as a spy in yer Majesty’s service. Captain Mitt has made me a better offer – th’ pay be in real doubloons (as opposed to th’ hope and spare change that ye been payin’ us with) and th’ workin’ conditions with Captain Mitt be smooth sailin’. Give my regards to Queen Michelle, and good luck in 2012, Sir. I’m guessin’ ye ‘ll be needin’ it.

    Your ex-servant,

    Picaroon Rumfustian