Bailout? Baloney!: Government Spin on Bankruptcy (Paperback) (ISBN-13: 9781500636562)

BAILOUT? BALONEY! disputes the government claim of a bailout of the auto industry. Congress voted 52-35 "against" a bailout, and the Obama-Rattner study group actually drove Chrysler and General Motors into bankruptcy. Ford avoided bankruptcy by using a $23 billion bank loan for working capital. The loan was obtained in 2006 for restructuring and saved Ford during the recession. The 2008 recession caused auto sales to drop 40% and the car companies could not pay their bills when revenue dropped 40%. No company can survive a 40% drop in revenue and survive. The financial sector was also in bankruptcy - 465 banks and 388 mortgage companies went bankrupt. The 2008-2009 housing recession was caused by government legislation written to increase home ownership for minorities and low-income families. Down payments and income verification were eliminated to attract low-income applicants. However, millions of the low-income applicants could not make the mortgage payments and toxic mortgages accumulated. Wall Street compounded the problem by selling mortgage bonds to unsuspecting investors. The mortgage bonds contained the toxic mortgages and soon failed. Wall Street invested heavily in the toxic mortgage bonds and went into bankruptcy when the bonds were recognized to have no value in 2007. The 2008 Great Housing Recession started when Lehman Brothers went bankrupt on September 15, 2008. The government attempted to stem the recession by creating a $700 billion TARP fund for troubled assets. Financial institutions were bailed out with $700 billion, but the auto companies were denied a $35 billion loan. The Treasury bailed out white-collar Wall Street, but rejected blue-collar Main Street and passed the auto issue to Congress. Congress studied the auto problem for nearly two months and voted AGAINST a bailout on December 12, 2008. After Congress voted against a bailout, President Obama was the last resort. Instead of granting TARP funds to save Chrysler and GM, the president started a task force to further study the auto problem. The five-month Rattner study resulted in the bankruptcy of Chrysler and GM. There was no bailout, only bankruptcy. The government claim of a bailout is a complete falsehood and a Washington spin on bankruptcy. Only politicians can take 8 months "studying" the auto industry, vote AGAINST a bailout, drive Chrysler and GM into bankruptcy, and then take credit for saving the industry. The events were tragic but would make an excellent comedy on Broadway. The final scene could be President Obama playing golf while the auto industry melted down - similar to Nero fiddling while Rome burned.

Author: Lou Lawrence
ISBN-10: 1500636568
ISBN-13: 9781500636562
Publisher: Createspace Independent Publishing Platform
Language: English
Published: 10/08/2014
Pages: 276
Format: Paperback
Weight: 0.82lbs
Size: 9.02h x 5.98w x 0.58d