Obama’s “pre-packaged” bankruptcy an early Christmas gift to GOP
GOP should ride shotgun in President-Elect's new car
And Republicans they should do it quickly before the Democrats get in the frontseat.
This is a brilliant idea, even if The One did think of it. It is what used to be called political victory for a more savvy GOP. Republican office holders, radio talk show hosts and columnists have been all over TV, radio and the Web advocating bankruptcy for bankrupt companies and rightly decrying any bailout that keeps union contracts in tact and that lets Reid, Pelosi, Franks and Dodd (The Three Horsemen and National Velvet of the American economic Apocalypse) run the auto industry like they run Amtrak and Fannie Mae.
The Loyal Opposition should show their loyalty to America and back up the President-Elect on his concept:
President-elect Barack Obama’s transition team is looking into a “prepackaged” bankruptcy for Detroit’s automakers as a possible solution to the industry’s financial crisis, Bloomberg News reported today, citing an unnamed source familiar with the matter.
A representative of Obama’s team has already contacted at least one bankruptcy law firm about the idea, according to the source.
In a prepackaged bankruptcy, a company would go into court with financing ready after reaching agreements with lenders, workers and suppliers on what each would give up and on a business plan, Bloomberg reports. Such a process would take substantially less time than a typical Chapter 11 bankruptcy.
Getting out front on this would also address the serious political concerns of Pat Buchanan for the GOP’s future:
Are Republicans aware of what they are about to do?
When workers, execs, engineers, dealers, salesmen and suppliers are all factored in, the Big Three employ 3 million people who contribute $21 billion a year to Social Security and Medicare, and $25 billion in federal income taxes. Add in all the businesses that depend on the auto industry, and we are talking about one-tenth of the U.S. labor force.
As columnist Tom Piatak of Chronicles and Takimag.com writes, 850,000 retirees, and their families, depend for pensions and health care on the Big Three. If they go under, the burden falls on us.
And to let the auto industry die is to write America out of much of the economic future of the planet.
Gamecock doesn’t buy all of Pat’s trade ideas, but he does agree that government policy has greatly burdened the auto industry and that both politically and economically, the GOP needs to be part of the solution.
Obama has given us a great opportunity to highlight a more conservative solution that the Democrats.
“One man with courage makes a majority.” – Andrew Jackson