August 23, 2014

Mitt opposes bailout, makes $15M off it anyway

Mitt Romney: Let Detroit Go Bankrupt

Here is the galling part about Mitt Romney – he is willing to do or say anything. Typical of most elected officials, right? But Romney is a special, special case.

Recently he put a radio ad on the air in Ohio, lying that Jeep was planning on pulling 15,000 jobs out of Ohio and moving them to China. Problem was, Jeep wasn’t doing that at all. What happened was that Jeep said the demand for their cars in China was so great that they had to open up a new plant in China. This is a good thing, with the trade imbalance and all. As a capitalist, Romney ought to agree that Jeep increasing production in China is beneficial. For Romney’s blatant lying, the Washington Post’s Fact Checker gave him four Pinocchios – a flat out lie.

Not that he ever supported the car companies anyways. In Nov 2008, Romney infamously penned a NYTimes op-ed called “Let Detroit Go Bankrupt” – a bold move for the son of the former beloved Gov. of Michigan.

Romney opposed the $80 billion dollar bailout of the car companies, while Obama and his administration supported it. The NYTimes estimated that this support saved 1.5 million jobs in Michigan, Ohio, and other parts of the country. I guess Romney is only for bailing out the banks?

Despite Romney being against the auto bailout, he managed to make $15 million off of it anyway.

The United Auto Workers (UAW) and Citizens for Responsibility and Ethics in Washington (CREW) filed a formal complaint with the US Office of Government Ethics in Washington stating that Gov. Romney improperly hid a profit of $15.3 million to $115.0 million in Ann Romney’s so-called “blind” trust.

“While Romney was opposing the rescue of one of the nation’s most important manufacturing sectors, he was building his fortunes with his Delphi investor group, making his fortunes off the misfortunes of others,” King added.

The Romneys’ gigantic windfall was hidden inside an offshore corporation inside a limited partnership inside a trust which both concealed the gain and reduces taxes on it.

. . . President Obama’s approved trust, for example, contains only highly-diversified mutual funds on which presidential action can have little effect. By contrast, the auto bail-out provided a windfall of over 4,000% on one single Romney investment.

In 2009, Ann Romney partnered with her husband’s key donor, billionaire Paul Singer, who secretly bought a controlling interest in Delphi Auto, the former GM auto parts division. Singer’s hedge fund, Elliott Management, threatened to cut off GM’s supply of steering columns unless GM and the government’s TARP auto bailout fund provided Delphi with huge payments. While the US treasury complained this was “extortion,” the hedge funds received, ultimately, $12.9 billion in taxpayer subsidies.

As a result, the shares Singer and Romney bought for just 67 cents are today worth over $30, a 4,000% gain. Singer’s hedge fund made a profit of $1.27 billion and the Romney’s tens of millions.

The point is – Romney is not to be trusted. Who’s to say that he wouldn’t privatize Social Security and Medicare, and then turn around and make millions off of that? Or that he wouldn’t continue to hold up the common-sense Transportation Reauthorization bill which would create much needed construction jobs — only to turn around and profit by hedging against safer roads and bridges?

This is a man who said that funding disaster relief was “immoral” (GOP debate, St. Anselm’s College June 2011). Does that make you feel more secure? It doesn’t make me feel safer.

As a New Yorker, watching my city (including the bright lights of NYU hospital) plunged into darkness scared the living daylights out of me. Watching first responders hand-evacuate patients down 10+ flights of stairs was never something I expected to happen. My city is under martial law, and there are still gas shortages.

Do something for the good of our country today. Vote Barack Obama and the Democratic ticket.

–Caroline

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