Mitt was on Bill Bennett's radio program this morning
- 'Morning in America'
From Bill's blog, 'Nota Bennett'
Former Massachusetts Governor Mitt Romney was right and prescient on this three months ago when he wrote that if the first bailout of the automakers went through, "the automakers will stay the course, the suicidal course of declining market shares, insurmountable labor and retiree burdens, technology atrophy, product inferiority and never-ending job losses. Detroit needs a turnaround, not a check." While it is true GM and Chrysler now say they will drop some of their brands, shut some of their plants, and restructure some of their union contracts, why didn’t they do that already with the first government handout? I don’t think 22 billion dollars more is the answer. In fact, I thought Mitt Romney was right last November and I think he’s right now: "A managed bankruptcy may be the only path to the fundamental restructuring the industry needs. It would permit the companies to shed excess labor, pension and real estate costs. The federal government should provide guarantees for post-bankruptcy financing and assure car buyers that their warranties are not at risk. In a managed bankruptcy, the federal government would propel newly competitive and viable automakers, rather than seal their fate with a bailout check." I would just add: "another bailout check."
We’ll get Mitt’s thoughts on this more next week.
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