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.

Tweet about this on Twitter30Share on Reddit0Share on Facebook4Google+1Email to someone

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

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11

Emptywheel Twitterverse
emptywheel Help me out: is all the outrage abt Germany subjecting US to CI to suggest we don't do the same here? http://t.co/s2Siicat1G
14mreplyretweetfavorite
emptywheel @robertcaruso No reason to believe this came from Snowden.
40mreplyretweetfavorite
emptywheel @jamesrbuk To be fair, I think one could support the case that Rummy is an alien lizard.
54mreplyretweetfavorite
emptywheel RT @ahope71: U.S. Considering Refugee Status for Hondurans, via @nytimes http://t.co/DXdUm0a0MG
1hreplyretweetfavorite
emptywheel @RBrulin worked!
1hreplyretweetfavorite
emptywheel @RBrulin Getting "page not found"
1hreplyretweetfavorite
emptywheel RT @TheAviationist: Armed U.S. Predator drone appears over Iraq http://t.co/8uyUEPHWTj http://t.co/XpfGQTgw7s
2hreplyretweetfavorite
bmaz @stephenlemons @RebekahLSanders @aliarau Yeah, but now it is going to be harder to take my growler boating.
9hreplyretweetfavorite
bmaz Better link for the previous DOJ-OPR tweet http://t.co/4U1gLWhHxm @MonaHol
10hreplyretweetfavorite
bmaz Two "liberal" Obama appointees, Patricia Millett+Nina Pillard join hack Janice Rogers Brown to screw Shirley Sherrod http://t.co/S9WMGtTJND
10hreplyretweetfavorite
bmaz Another suspension+disbarment for former AUSA where DOJ-OPR and David Margolis had whitewashed misconduct http://t.co/2vHBkAjhmO
10hreplyretweetfavorite
February 2012
S M T W T F S
« Jan   Mar »
 1234
567891011
12131415161718
19202122232425
26272829