Mary Barra and Me, The closing of the GM Warren Transmission Plant

[401don]

Romney was right by saying that the government should not bail GM out.

This is old news but any very basic understanding of the auto industry, which someone living in Michigan should have, would explain why it was necessary. Why do you think Ford wanted GM and Chrysler bailed out? Because every parts supplier in North America, and therefore Ford as well, would have shut their doors. The spillover effect would have devastated an already crippled U.S. economy for years.
I found it hard to believe at the time someone like Romney, originally from Michigan, was that stupid.

[Honky Tonk]

This is old news but any very basic understanding of the auto industry, which someone living in Michigan should have, would explain why it was necessary. Why do you think Ford wanted GM and Chrysler bailed out? Because every parts supplier in North America, and therefore Ford as well, would have shut their doors. The spillover effect would have devastated an already crippled U.S. economy for years.
I found it hard to believe at the time someone like Romney, originally from Michigan, was that stupid.

That's why he went on to become president. Oh, wait... Maybe it was the Russians?

[Cincinnati_Kid]

This is old news but any very basic understanding of the auto industry, which someone living in Michigan should have, would explain why it was necessary. Why do you think Ford wanted GM and Chrysler bailed out? Because every parts supplier in North America, and therefore Ford as well, would have shut their doors. The spillover effect would have devastated an already crippled U.S. economy for years.
I found it hard to believe at the time someone like Romney, originally from Michigan, was that stupid.

Great point, they could not let them fail. The domino effect would have devastated SE Michigan, as well as auto manufacturing in other states.

[beachboy]

Great point, they could not let them fail. The domino effect would have devastated SE Michigan, as well as auto manufacturing in other states.

Not to mention the reliance of our Defense Department on automotive technology ...

[Wesley Mouch]

...snip...The spillover effect would have devastated an already crippled U.S. economy for years.
I found it hard to believe at the time someone like Romney, originally from Michigan, was that stupid.

The idea that businesses who aren't prepared for rainy days should be allowed to fail isn't 'stupid'.

There is a reasonable argument that the moral hazard is created by our willingness to 'bail out' businesses who fail.

We have two choices in how we structure our economic society.

1) Bail out those who fail, or

2) Let them fail.

If the US Auto industry had failed, I would have lost tens of thousands of dollars in investment. Instead, that investment was restructured, and I ended up with shares of the new GM that have done quite nicely. Moral of the story. Don't build resilient businesses. Run on the edge to chase maximum profit, and if things go bad, you'll get bailed out.

Worked for GM and Chrysler. Worked for Wall Street. Let's do it again.

A collapse would have been painful. Really painful. But we'd all be better off with a more responsible Corporate America in the end.

IMO, bail outs are 'stupid'.

[Honky Tonk]

The idea that businesses who aren't prepared for rainy days should be allowed to fail isn't 'stupid'.

There is a reasonable argument that the moral hazard is created by our willingness to 'bail out' businesses who fail.

We have two choices in how we structure our economic society.

1) Bail out those who fail, or

2) Let them fail.

If the US Auto industry had failed, I would have lost tens of thousands of dollars in investment. Instead, that investment was restructured, and I ended up with shares of the new GM that have done quite nicely. Moral of the story. Don't build resilient businesses. Run on the edge to chase maximum profit, and if things go bad, you'll get bailed out.

Worked for GM and Chrysler. Worked for Wall Street. Let's do it again.

A collapse would have been painful. Really painful. But we'd all be better off with a more responsible Corporate America in the end.

IMO, bail outs are 'stupid'.

And, of course, as soon as they were out of the woods, things went back to the same old used to be.