There was NO CREDIT AVAILABLE from anywhere in 2008. Car Cos would have been LIQUIDATED!

[Bozita]

[Ilsa]

1. Exactly!

The banks were illiquid. There was no private placement. The markets were tanking. It had to be a govt loan.

[Zynx]

2. Sometimes I think people forget just how fucked up things were back then.

I will point out that Chrysler was owned by a private equity firm at the time all hell broke loose. No one was interested in it without government backing.

[Bozita]

3. IIRC, it was the Carlyle Group.

Last edited Tue Oct 23, 2012, 01:55 AM - Edit history (1)

The Bush crime family and friends.

on edit: The above statement is TOTALLY false. Keep reading as this wrong is corrected.

[jmowreader]

7. Chrysler belonged to Cerberus, not Carlyle

The thing that killed Chrysler is the same thing that killed GM: their credit division was in the mortgage industry as well as the auto-loan industry. When mortgage finance blew up, it took both Chrysler and GM with it. IIRC Ford Motor Credit Corporation was not a mortgage player.

[Bozita]

8. Thank you. You are correct. It was Cerberus!

My mistake.

[amandabeech]

4. Rattner, the investment banker in charge of the rescue, could not find any private equity to take GM

No one was investing any money.

Robmey and Bain were MIA even though Robmey loves American cars so much.

[moondust]

5. "Managed bankruptcy"

is a euphemism for union busting, wage slashing, benefits destroying, and downsizing. It's the Romney plan for everything.

[Bozita]

6. Yup, it's just another way of fucking the workers!

[OmahaBlueDog]

9. I'm glad someone else remembers this

You couldn't get a lease, either.

[Bozita]

11. Chrysler stopped their lease program in July of 2008. That was the handwriting on the wall.

It didn't get a lot of coverage in the MSM, but that killed production at Chrysler due to the percentage of new vehicles being sold on lease.

[Segami]

10. Expect President Obama to hammer that point home to folks in Ohio. President Obama was like

a battering ram!!!

[NightWatcher]

12. would you buy a car from a bankrupt company?

neither wouldve anyone else, and they would have died and 5 million jobs would have gone away

[Bozita]

13. The first step toward saving the Cos was the govt backing up the car warranties.

Without that, NO vehicles would have been sold.

[Segami]

18. Ford did NOT receive a U.S. government bailout, but they too would have closed their doors if Obama

hadn't rescued GM & Chrysler.

Ford Motor Co. (F), the only large U.S. automaker that didn’t receive a U.S. government bailout, would’ve failed along with General Motors Corp. and Chrysler LLC if President Barack Obama’s administration hadn’t rescued the industry, said Steven Rattner, who headed Obama’s auto task force.


“Ford would have closed because it wouldn’t have been able to get parts, because the parts industry in this country was in arguably worse shape than the assemblers,” Rattner said today at the Center for American Progress in Washington.


http://www.bloomberg.com/news/2012-10-09/ford-would-have-shut-without-auto-bailouts-rattner-says.html

[reformist2]

14. Maybe Bain Capital would have swooped in like a vulture.

[sad sally]

15. And Romney's claim of being the son of Detroit is another lie - he was born in Detroit, though he

grew up in Bloomfield Hills, one of America's wealthiest cities.

The Economist wrot on MittAnn's op-ed:

"Had the government not stepped in, GM might have restructured under normal bankruptcy procedures, without putting public money at risk", we said. But "given the panic that gripped private purse-strings...it is more likely that GM would have been liquidated, sending a cascade of destruction through the supply chain on which its rivals, too, depended." Even Ford, which avoided bankruptcy, feared the industry would collapse if GM went down. At the time that seemed like a real possibility. The credit markets were bone-dry, making the privately financed bankruptcy that Mr Romney favoured improbable. He conveniently ignores this bit of history in claiming to have been right all along.

[Bozita]

16. For more about just how Mittens is a son of Detroit, visit this link...

Last edited Tue Oct 23, 2012, 01:42 AM - Edit history (1)

http://www.democraticunderground.com/1058120

Yup, Mittens is just another of us Detroiters. Click on the link above. You'll see!

[malaise]

17. WilLIARd lied big time

and he's been caught again - what a despicable human being - by any means necessary.
Damn I detest this ReTHUG scumbag.

[Bozita]

19. That is THE fact that Ohio voters need to know before voting!