Obama: Auto bailouts worked
February 28th, 2012
11:42 AM ET
3 years ago

Obama: Auto bailouts worked

New York (CNNMoney) - President Obama on Tuesday defended his administration's 2009 bailout of the auto industry in a speech to the United Auto Workers union, saying it prevented another Great Depression from hitting the Midwest.

Obama said that, despite claims of Republican critics, the bailout was the only way to prevent the closure of General Motors and Chrysler Group and the collapse of the nation's supplier base.

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Filed under: 2012 • Auto Bailout • CNNMoney.com • President Obama
soundoff (40 Responses)
  1. Howard

    Obama continues to tell Americans that 2 + 2 = 5 ... and, there's always a bunch of stupid people out there (and posting here), who believe him ... and, are ready to tell the rest of us that he is absolutely right ... and, insult us if we disagree.

    February 28, 2012 12:56 pm at 12:56 pm |
  2. Sniffit

    "When government officials get into the business of picking winners and losers in the private sector, that's when the line has been crossed. Nothing more, nothing less."

    The only things being picked when people hear that tired, overgeneralized, nonsense talking point is peoples' noses. Seriously. Life and reality don't come with a strict set of ideological rules that require only one solution to every single problem. Get over it.

    February 28, 2012 12:56 pm at 12:56 pm |
  3. Gothaze

    Im no economist, however I did understand at the time that a failed Auto Industry in the shadow of a failed housing market would have been devistating not only on the economy but also added undo stress and chaos that would have been unthinkable. Deprive a man of his most basic needs. His or her survial insincts will kick in. Ie; your front door! But besides that, The Auto industry is as iconic as America itself. I beleived at the time and I still do our Auto Industry was and is to big to fail.

    February 28, 2012 12:58 pm at 12:58 pm |
  4. Larry L

    Republicans are disappointed to see the bailout work – because the Teavangelicals wanted our government to fail. It's easy to be a Monday morning quarterback, but what did the Republicans offer? Really – what were their ideas? What if the total economic system of America had cratered? Without a manufacturing capability how would we have recovered? We make a living out of buying and selling stuff made overseas to each other for a profit. President Obama took action, painful but necessary action, and it worked. Now is the time to pull together and build a system to reduce our deficit without destroying our middle class.

    February 28, 2012 12:59 pm at 12:59 pm |
  5. Sniffit

    "What if the total economic system of America had cratered?"

    I guarantee you that there are certain very pwerful and influential elements involved that wanted precisely that. 310M Americans reduced to third-world labor beholden to whoever will offer them a job for just enough salary to feed and cloth themselves? UNable to get higher educations and unlearn religious fundamentalist indoctrination or defend themselves from political misinformation campaigns? SIGN ME UP!!!!

    February 28, 2012 01:05 pm at 1:05 pm |
  6. Peggy - TX

    Currupt unions ... drug addicts ... welfare fraud.... some one is out of touch with reality and drinking the cool aid delivered via FOX news.

    February 28, 2012 01:08 pm at 1:08 pm |
  7. Marie MD

    @truth, again showing us your complete ignorance of economics. @fair, two million jobs is not important to the economy. See prior sentencd about @truth
    @deridi, good post but ghe teapublikans will never give credit to the President for finishing the job that the village idiot from TX let undone. Their hate of this man is so powerful that they can't stand it.
    @truth, an earthquake did occur in tantrum boys, cantor, backyard and lo and behold he wanted the same federal money he fought so hard against giving to other areas of the country damaged by tornadoes and floods. Hypocrites all!!!

    February 28, 2012 01:08 pm at 1:08 pm |
  8. Dominican mama 4 Obama

    Len said:
    You must have an open mind and educate yourself and learn the truth
    ------------------------
    If the truth gets in the way of their venom they want nothing to do with it Len. The truth is an inconvenience except when it involves bad news for the country: high unemployment, high gas prices. Then they revel in it and embrace it.
    Why do Republicans hate America so much?
    Obama 2012.

    February 28, 2012 01:08 pm at 1:08 pm |
  9. Rudy NYC

    As Romney so eloquently pointed out, they needed a structured bailout. Something that companies like Bain Capital would sometimes manage with private capital. Romney says the private sector could have done the same thing, which is a good job of restructuring the companies. Except for one thing, the private sector wasn't coming up with the funds, and the companies would have eventually closed their doors one day, liquidated to the highest bidder, putting tens of thousands of auto workers out of business. The damage to the automotive industry infrastructure would have crippled Ford, and other manufacturers with sites in the US.

    February 28, 2012 01:10 pm at 1:10 pm |
  10. diridi

    Obama2012.

    February 28, 2012 01:11 pm at 1:11 pm |
  11. Truth and Nothing But the Truth

    Rudy NYC - Except for one thing, the private sector wasn't coming up with the funds, and the companies would have eventually closed their doors one day, liquidated to the highest bidder, putting tens of thousands of auto workers out of business
    ============================================================================================
    Another lie. Chrysler was BOUGHT by a foreign car company and survives today. GM would have survived as well, just NOT with the same plush union contracts and benefits, which is the ONLY reason Obama intervened. If these were two non-union shops, he wouldn't have done a thing to help them. So expect a LOT of the taxpayers money to now make it into the Obama re-election campaign. Funny how that all works huh?

    February 28, 2012 01:21 pm at 1:21 pm |
  12. Peggy - TX

    Really Howard ….. President Obama is letting us 2+2=5, because I did not hear that, rather what I hear consistently from our President of the United States is exactly the way it. He continues to provided an exceptional level of leadership in spite of the obstructionist in Congress and the Senate. If you are insulted because you disagree with the President, maybe it is because you are incapable of iterating a single sound basis for your disagreement and your language choice disrespects the office of the United States. He is “President Obama,” referring to him as “Obama” makes you simply sound like a child. And the 2+2=5 argument has no substance and simply makes you sound ignorant.

    February 28, 2012 01:22 pm at 1:22 pm |
  13. Taran

    @truth, fair, and wiredweird,,,,spot on as usual.

    February 28, 2012 01:23 pm at 1:23 pm |
  14. stars

    Boy these guys that hate the president. Are so full of hate they sound like some racist hecks from my home state miss. a bunch of backwood hicks god help them.

    February 28, 2012 01:24 pm at 1:24 pm |
  15. rob

    President Obama's part of the bailout was designed to save the unions and to make it easier for the Govt to exert more controll od these manufacturers. The bond holders in this bailout were left out in the cold but the unions ended up with an ownership stake in GM and despite what the Dems and the media tell you, the car co's still owe billions that may never be paid back. BTW, Chrysler is 50% owned by the Italian company Fiat.

    Do not believe the liberal media, they will not tell the whole truth. Get you information from fairer sources.

    February 28, 2012 01:25 pm at 1:25 pm |
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