The president has been spreading lies about Mitt Romney’s position on saving GM and the auto bailout.
Both agreed on a “managed bankruptcy,” meaning the government would maintain financial lines of credit, honoring contracts in bankruptcy so that suppliers would keep operating. “A managed bankruptcy may be the only path to the fundamental restructuring the industry needs,” Romney wrote in a 2008 New York Times op-ed that has been willfully distorted by Obama & Media.
The distortions, however, include Michigan’s industry establishment which claims Romney refused government intervention and ignored the reality that credit markets were frozen and the automakers had no way to honor supplier contracts and customer warranties. They should know better. Romney explicitly called for government to provide cash financing in the Times op-ed:
“The federal government should provide guarantees for post-bankruptcy financing and assure car buyers that their warranties are not at risk,” he wrote in a line that might make some conservatives cringe.