Why Obama won't bail out Detroit
July 20th, 2013
02:28 PM ET
1 year ago

Why Obama won't bail out Detroit

(CNNMoney) - Four years ago, the Obama administration rode to the rescue of two Detroit automakers, pouring $80 billion into General Motors and Chrysler Group to see them through their bankruptcies.

But their hometown won't get a similar bailout, even as Detroit becomes the largest municipal bankruptcy in U.S. history.

FULL STORY

Filed under: Michigan • President Obama
soundoff (16 Responses)
  1. smith

    Unions destroyed US carmakers and now they done it to Detroit. Hopefully people will see liberal ideas are dumb and do not work.

    July 20, 2013 02:45 pm at 2:45 pm |
  2. jpmichigan

    Bush was the one who initiated the bailout, not Obama. Why doesn't Obama do more for African-Americans in way of jobs? Instead fights tooth and nail for immigration and let the uncarded be able to work.

    July 20, 2013 02:46 pm at 2:46 pm |
  3. Bill from GA

    A lot of cities are in trouble, though few acknowledge it. Detroit is worse off because their population has diminished so much over the last 50 years.

    In Atlanta, a previous mayor promised benefits to workers far beyond what the private sector would offer, rather than raise salaries. The cost of a salary increase would have been immediate: the cost of lucrative benefits comes due down the line.

    Smart move, Obama. Stay out of that one.

    July 20, 2013 02:50 pm at 2:50 pm |
  4. Dixie

    whatever happened to "to big to fail"? banks do stupid stuff or auto makers and get billions. This was dumb then and it will be dumb now but there is a duble standard.

    July 20, 2013 03:15 pm at 3:15 pm |
  5. rs

    Well, to be fair, EVEN IF Mr. Obama really wanted to "bail out" Detroit, what kind of odds do you give the TEA Party insane in the House to bomb it, if not Mitch McConnell launching a filibuster against it in the Senate?
    The GOP certainly doesn't care about the people of Detroit- especially the "47%" who need their city derived retirement payments to stay out of poverty.
    The GOP is simply about hate and punishment-of Americans, not good leadership.

    July 20, 2013 04:15 pm at 4:15 pm |
  6. army vet

    Another broken promise by obama. unionworkers unite!

    July 20, 2013 04:33 pm at 4:33 pm |
  7. Ed1

    This is an easy one he doesn't need their votes anymore.

    July 20, 2013 04:45 pm at 4:45 pm |
  8. tod

    The death of detroit provides us with a perfect example of exactly what steps lead to fiscal and economic collapse. How can these same citizens of Detroit, the same ones who have been suffering for so long, keep voting in the same leadership?? It just blows my mind. If something isn't working then have the guts to make a change. I don't know... its just very sad and discouraging when you see the similarities in voting and economic policy being made all across the country, and you consider the debt that our country is in. We have to reign in our spending and begin the slow processes of staying true and paying down. Politicians can't keep putting this off and it shouldn't be a partisan issue. We the citizens of the U.S. must force this because our politicians are incapable of making the decisions that take money and jobs away from the people that vote them in. It is a self destructive and catastrophic cycle that must be broken for the security of our country. WAKE UP!! Detroit will be our future if we keep on our current path.

    July 20, 2013 05:55 pm at 5:55 pm |
  9. stephen

    im sorry to hear about your story guys. I hope you will be able to fix it soon. good luck

    July 20, 2013 06:06 pm at 6:06 pm |
  10. Ron L

    Frankly, I don't even understand why anyone would think the President would want to bail out Detroit. When he stepped in to save the auto industry he understood two things: 1) The 100 of thousands of jobs connected to the auto industry would disappear, crippling the economy even more. 2) While the auto industry was struggling before the banks collapsed the REAL REASON they had to be helped was the banks stopped making loans. To those of you that are not in auto manufacturing you have no idea the cash flow require to keep it solvent. IT IS A HUGE AMOUNT!!!
    Now, when you look at Detroit it is just the opposite. The city has been in trouble, serious trouble for over 10 years. The constant lost of citizens meant a constant lost of revenue and with interest piling up on the money already borrowed there was NO WAY to catch up. Unfortunately, once again people who may have worked for the city for 20 to 30 years and thought they had a certain amount of pension to look forward to are going to be lucky if they get half of it. This is the only area I feel "IF" the federal government is going to step in, it should be to help prevent these promised pensions not evaporate completely. Other that that Detroit's City Council, Mayor, Teachers, Fire Fighters, Police, and other city employees need to sit down and realize while it is painful to go through this experience, it is the ONLY way to really reconfigure the city for a brighter future.

    July 20, 2013 06:44 pm at 6:44 pm |
  11. Evergreen

    I feel for my fellow Americans and hope the city will recover quickly.

    July 20, 2013 08:51 pm at 8:51 pm |
  12. California

    Didn't Obama tell Detroit he wouldn't let them down and would save them?

    Catch 22 on this one.

    July 20, 2013 11:43 pm at 11:43 pm |
  13. CaliforniaAc

    We'd be fools to bailout the city of Detroit, which has been driven into the ground by failed Republican policies designed to make the city go bust. Once it goes bankrupt Vulture Companies (Remember how Mitt made his fortune?) will pounce on the wreckage left behind and will strangle the working class into poverty while they rake in the profits. The City's GOP government did this by design, so this is the pattern the GOP will use for all other major cities in the US...stay turned.

    July 21, 2013 02:58 am at 2:58 am |
  14. stars

    That what happen when a rethug is runing your state. So get out and vote these demon out. I"m telling what god want"s us to do.

    July 21, 2013 05:22 am at 5:22 am |
  15. Jason

    Maybe he wont bail them out because he already got the good people of MI to vote for him to get re~elected

    July 21, 2013 05:51 am at 5:51 am |
  16. king

    how can Obama bail out Detroit over the obstructionist repubs in the congress. doesn't folks know that the congress is the one with the money and allocates the money to do anything in our country. look at our infrastructure that are crumbling all around us and the repubs led congress are willing to sit back and allow other countries like china to modernize right under our noses just to stiff this president.
    lesson folks, Detroit is not a corporation and is not a priority and see this as a tool to say obama cause this even though michigan has a repub governor for the past 2 years. so the repubs are going to block any attempt by the dem to modernize and overall the city like how Obama did to the Detroit auto manufacturers during the great recession to bring them back from the dead. it's not Obama you should worry about its those obstructionist repupbs in congress who has the power of the purse to help Detroit or see it dies, the president doesn't have any money to help, and trying to influence the repubs to help is fruitless because of they are in fare of their right wingers that will vote them out if the lift a hand to save Detroit..

    July 21, 2013 08:21 am at 8:21 am |