THE OP-ED heard and history around it [Opinion and Review]

Opinion | Guest Commentary
By Matthew K writing for Mychiller  
  In 2008 Mitt Romney wrote an op-ed for the New York Times ,  about the auto companies,the American auto-makers who were begging for a bail-out at the time.  This happened too: 
         From CNN : 

                Some lawmakers lashed out at the CEOs of the Big Three auto companies Wednesday for flying private jets to Washington to request taxpayer bailout money.

   That was Novemember 19th 2008 when that article came out. 
From the New York Times :

         The Senate on Thursday night abandoned efforts to fashion a government rescue of the American automobile industry, as Senate Republicans refused to support a bill endorsed by the White House and Congressional Democrats. 

That was December 11th 2008.
   From ABC NEWS , also on December 11th 2008.

               Even if TARP funds are made available to the Big Three, would that save the automakers from bankruptcy, or just delay it?

As yes what a good question  if  GM and Chrysler got the  TARP bail out, would that delay it ? T.A.R.P , if you forgot what it was , was the bank bailouts of 2008 under President Bush. It cost $787 billion dollars of Tax-payer money.

    December 20th ,2008 : Guess what President Bush Did? He may have been reading the news that was wondering if he could use T.A.R.P.
     From NY TIMES:

                The emergency bailout of General Motors and Chrysler announced by President Bush on Friday gives the companies a few months to get their businesses in order, but hands off to President-elect Barack Obama the difficult political task of ruling on their future.  The plan pumps $13.4 billion by mid-January into the companies from the fund that Congress authorized to rescue the financial industry. But the two companies have until March 31 to produce a plan for long-term profitability, including concessions from unions, creditors, suppliers and dealers.

 Aw ,yes Thanks Mr. President you did something congress didn't do. But now that question If T.A.R.P funds are used for the automakers would that save it from Bankruptcy or delay it? 

     April 1st 2009 : Aw part of the answer. 

    From Reuters :

        General Motors Corp warned on Tuesday there was a rising chance it could file for bankruptcy by June, as Fiat SpA and Chrysler LLC executives met in a race to complete a tie-up the U.S. government says Chrysler needs to survive.

   Hmm , I thought the money was supposed to save them? I thought the money was there to keep them from going under or into bankruptcy.
          Also in that same Reuters article:

                           "By no later than June 1, if we're not able to accomplish this outside bankruptcy, we'll be in bankruptcy. It's pretty clear. The government was unequivocal," said Henderson, whose predecessor, Rick Wagoner, was forced out by the Obama administration on Sunday.

If by June 1st 2009 , If GM is not able to fix themselves outside of bankruptcy the will have to go bankruptcy? So the money given to them in December did nothing pretty much.
   June 1st 2009 what happened?
  From CNN :

General Motors filed for bankruptcy protection early Monday, a move once viewed as unthinkable that became inevitable after years of losses and market share declines capped by a dramatic plunge in sales in recent months.

Woah wait a second , I thought Bankruptcy was bad idea and unthinkable and awful and would end GM for the rest of our lives.  And  what happened to Chrysler ?
    May 1st 2009 , from Reuters

             Chrysler LLC filed for bankruptcy on Thursday and announced an industry-changing deal with Fiat, after being pummeled by sliding auto sales and unable to reach agreement on restructuring its debt.
       Despite weeks of intense negotiations, Chrysler failed to gain full support from its lenders to avoid the first-ever bankruptcy filing by a major U.S. automaker.

 Uh... what so they got bailed  out and still did the unthinkable , they declared Bankruptcy and now was in talks with Fiat , an auto maker in Italy.?
 From the NewYork Daily News OP-ED in August 2008

           But for GM or Chrysler, declaring bankruptcy would be more like slashing their own tires. Customers would flee, consumers would be unsympathetic, and the government would probably do little to help. Here's why bankruptcy would be such a dire scenario for any one of the Detroit 3

 But with  Chysler in 2009 on that day again May 1st  (from US NEWS and World Report)

          The company will not cease operations. Instead, the New York Times explains, "Chrysler is reorganizing under Chapter 11 of the United States Bankruptcy Code. The law allows companies to shed assets, restructure debt, cancel contracts and close operations that normally would have to continue running. Once they secure financing to emerge from bankruptcy, these companies are reconstituted as new legal entities." If the reorganization should fail, Chrysler "might turn to a Chapter 7 bankruptcy, which would mean a liquidation."

Ok , so there's more than one type of Bankruptcy who knew?
  and this  again from that US NEWS and World Report

    On the same day as the bankruptcy was announced, Chrysler signed an agreement to enter into a partnership with Italian automaker Fiat as part of its restructuring plan. The agreement will likely leave Fiat largely in control of Chrysler's operations.

 That did happen and now Fiat owns 58.8% of Chrysler , they did go into bankruptcy and with government Taxpayer money.
 Chysler did finally pay back their debts in full  , last year.  GM has yet to fully pay it off

My point is to look back at everything that happened, that seems to be clouded over by recent successes of the companies. Mitt Romney's OP-ED was called "Let Detroit Go Bankrupt" that's a striking headline  but if you don't read the content then you really don't understand what is being said.


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