Mitt Advocates Taking Healthcare from Retirees to Give Money to Bailed Out Banks

Someone gave Mitt Romney a shovel just in time to dig shit snow in MI for the next two weeks. There’s a lot that is fact-impaired in this op-ed doubling down on the “let GM go bankrupt” (starting with the lack of funding for a bankruptcy, meaning a managed bankruptcy was impossible).

By the spring of 2009, instead of the free market doing what it does best, we got a major taste of crony capitalism, Obama-style.

Thus, the outcome of the managed bankruptcy proceedings was dictated by the terms of the bailout. Chrysler’s “secured creditors,” who in the normal course of affairs should have been first in line for compensation, were given short shrift, while at the same time, the UAWs’ union-boss-controlled trust fund received a 55 percent stake in the firm.

He’s complaining, of course, that VEBA (the trust fund run by professionals that allowed the auto companies to spin off contractual obligations–retiree healthcare–to the unions) got a stake in Chrysler while Chrysler’s secured creditors took a haircut.

So, in part, he’s basically complaining that the bailout preserved the healthcare a bunch of 55+ year old blue collar workers were promised. He’s pissed they got to keep their healthcare.

He’s also complaining that banks took a haircut, as would happen in any managed bankruptcy.

But it’s more than that. He’s complaining that a bunch of banks that themselves had been bailed out had to take a haircut. He’s complaining, for example, that JP Morgan Chase, Chrysler’s largest creditor at the time and the recipient, itself, of $68.6B in bailout loans, had to take a haircut on $2B in loans to Chrysler.

Mitt’s op-ed makes him sound a lot like Jimmy Lee, Chase’s top negotiator on the auto bailout, who,

demanded to know why, if the government thought banks important enough to give them tens of billions in TARP money, it wanted to squeeze them on [the Chrysler] deal.

I guess Mitt, too, thinks the banks are so important they should take precedence over retiree healthcare, too.

But as the kind of bankster who, at Bain, relied on government subsidies to fund his “restructurings” that ended up taking people’s jobs and healthcare, that’s not all that surprising.

Still, the UAW retirees who still have healthcare today instead of Jamie Dimon having another yacht probably don’t feel the same way as Mitt does.

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11 Responses to Mitt Advocates Taking Healthcare from Retirees to Give Money to Bailed Out Banks

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Emptywheel Twitterverse
bmaz The night the NCAA became indistinguishable from, if it wasn't already, craven self serving malignancy of NFL. Congrats NCAA you've arrived!
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bmaz RT @John_de_Vashon: As always the core @NCAA narative must prevail. #TheFixIsIn #NCAA MT @bmaz: Bullshit play by KY and crapass call by the…
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bmaz I HATE Notre Dame, and, yet, they got completely ripped off by the refereeing. What a #joke
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bmaz @Gaius_Publius @MasaccioEW @ChrisInParis ND got fucking ripped off on contact. What a crock of shit. You KNOW I do not say that lightly.
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bmaz What a crock of dung. If the roles had been reversed had been reversed, ND would have never gotten the cheesy calls KY did. #FOUL
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bmaz Bullshit play by KY and crapass call by the refs
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emptywheel @jhamby Also think Amber Alert site went down sometime today after alert per @RayneToday @eric_analytics @chockenberry @SwiftOnSecurity
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bmaz Just saying, some men I know may have more than the luck of the Irish. Craft beers for all!
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emptywheel @jhamby But it included license plate, was for 15 year old teal F250. Even in MI can't be many of those left @chockenberry @SwiftOnSecurity
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emptywheel @jhamby This MI one this morning was statewide too (or at least lower peninsula), I think, from MSP. @chockenberry @SwiftOnSecurity
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bmaz @Gaius_Publius @MasaccioEW @ChrisInParis Wisconsin is also a classy and easy team to root for.
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bmaz @Gaius_Publius @MasaccioEW @ChrisInParis Hey AZ was more than capable of winning that game. The did NOT. Hat's off to Badgers; they're good.
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