Sorry, but I find this statement incredulous. Got proof? As I remember it, Bush refused to bailout the auto companies. He gave GM a short-term loan to hold it over until after the election saying it was up to his successor to decide. One of his very few good decisions. Maybe McCain would have bailed them out. Maybe not. He certainly would not have handed the companies over to the UAW and Fiat.
Also, bankruptcy does not necessarily mean a company and its suppliers disappear. We're not talking about a small company. Hostess went bankrupt, and we still have twinkies. If Chrysler went bankrupt, we would still have Jeep.
Bush gave a short term loan... against congressional approval. But look at his record, he assigned money to the auto industry when he didn't have to, he was not up for re-election, the presidential election was over, he had no personal consequences of doing nothing. (It was after the 2008 election) So yes technically the "Auto Bailout" was signed into law by Obama, but it was in the works under Bush to the point where as a "lame duck" with nothing to gain/lose, he gave them money.
David Freddoso wrote
"When President Bush threw GM and Chrysler their first lifelines (with President-elect Obama’s assent), he did so without congressional approval. After Congress voted specifically to prevent an auto bailout, Bush turned to the overly broad and hastily written TARP statute, which Congress had passed under extreme duress and threats from Treasury Secretary Hank Paulson that their failure to act would cause financial Armageddon."
Here is a CNN article from the time
http://money.cnn.com/2008/12/19/news/companies/auto_crisis/
Some people forget this picture, this was from the TARP negotiations that were going on the whole fall of 2008.
As with most things it is far more complicated than what it appears on the surface. To call the auto bailout "Obama's" is like saying "Alan Mulally's Raptor" He is the guy in charge but it would have happened in some form or another if there was someone else in charge.
Here is a CNN article from the time
http://money.cnn.com/2008/12/19/news/companies/auto_crisis/
It is just logical to think about the impact into the suppliers when a company is hurting, look at how much Home Depot struggled when the housing market fell apart. I am sure that Hostess's suppliers felt some pain when they went bankrupt.
The bailout's happened, the ground work started in 08, Obama was sworn in 2009.
Can we get back to talking about an Italian Jeep?
Nathan
