Skip to comments.Obama’s Ex-Car Czar Wants Taxpayer Bailout for Detroit
Posted on 07/22/2013 11:31:02 AM PDT by jazusamo
President Obama's former head of the Auto Task Force, Steven Rattner, helped orchestrate the auto bailouts that saw billions of taxpayer dollars spent to save General Motors and Chrysler in a rigged bankruptcy proceeding favorable to political allies (i.e., the UAW). Rattner is now calling for taxpayers to come to the rescue of Detroit as the city struggles to restructure through a bankruptcy process without federal handouts.
Rattner penned an op-ed piece for the NY Times that trumpeted the success of the auto bailouts and called for similar action to save Detroit. Rattner likens the Detroit situation to Hurricane Sandy, and as such, deserving of taxpayer money. Perhaps Mr. Rattner should contribute his own money to help the noble folks of Detroit rather than continue to try and redistribute the wealth of others to those he deems worthy.
There were many contributing factors to the bankrupting of Detroit, all of which can be attributed to humans as opposed to an Act of God such as Hurricane Sandy. Many of the residents of Detroit themselves are not as blameless as Rattner would have us believe. The city suffers from the second worse murder rate for major cities in America with only New Orleans ranked lower. Race riots in 1967 led to an exodus of many white Detroit residents. Beyond the crime issue, half of Detroit's residents do not pay their property taxes because they feel they are not getting the service they are entitled to. Detroit's government corruption peaked under Mayor Kwame Kilpatrick (reelected by Detroit's voters in 2005 as the city's "hip-hop mayor") and further drained the city.
Rattner has pointed to the invention of the automobile as another contributor to Detroit's woes. You see, if we never invented those pesky things, people would have had no transportation to leave the city to go to the suburbs! If Mr. Rattner had a sense of humor and we could mistake this for a joke, it would be understandable. But the guy seemed serious. Sorry Steve, but I think residents would have deserted even if they had to use horses and carts.
Of course, the auto industry played a part in Detroit's downfall ; just not in the way Mr. Rattner suggests. The major US automakers, particularly GM and Chrysler, were mismanaged for years, culminating with their bankruptcies in 2009. Detroit's main economic base dwindled along with domestic manufacturers' auto sales when foreign competition just plain built better cars. UAW workers lost their jobs partially as a result of their own high labor costs. The automakers moved much of their operations to the outskirts of the city or further.
I just don't get how Steve Rattner has become such a respected voice for free-market enterprise, something he has totally been at odds with. He is now a regular on a network known for its politically left-leaning views and has come up with some wild commentary there, as well. Just on Friday, during a morning segment on the historical Jesus , Rattner questioned whether Jesus was a terrorist. Again, I am not sure if this was an attempt at snarky elitist humor, but the comment is insulting and insensitive to many Christians.
Of course, I have a somewhat biased view towards Mr. Rattner. I was a member of the non-politically connected GM bondholder group which saw its rights subordinated to UAW interests during the auto bailout process that was orchestrated by the Obama Administration through Mr. Rattner. But I am also a member of a group called the American Taxpayers. And as such, I would urge Mr. Rattner to please stop being so eager to spend my money. Particularly on a situation such as Detroit's.
I'm sure that there are many innocent residents and retirees of Detroit, but the city is in the predicament it is because of crime, mismanagement, greed and corruption. Another federal bailout would just set another dangerous precident. No Mr. Rattner, the Detroit debacle has no resemblance to Hurricane Sandy and is not worthy of another of your taxpayer rip-offs.
Mark Modica is an NLPC Associate Fellow.
Obama is saving the Taxpayer Bailout for Detroit for a special time
How about a democRAT bailout? Since their leadership and policies ran the city into the ground to begin with. Along with Stockton, CA. and......
Which union are they going to give it to?
One way or another normal, hard working, productive people are on the hook for the democrat party’s failed experiment in socialism called ‘Detroit’
I don’t know why Obama doesn’t just give executive orders stating he owns the country. He has no opposition.
Agreed, he’ll make the pitch for it sooner or later.
GM has, at least, some assets which in theory could be sold off to recoup at least some of that money.
What on earth could you sell off in Detroit?
(regardless, I think it’s gonna happen)
Other Democrat-controlled cities are watching carefully to see how they can benefit from the bankruptcy-federal bailout process.
With all this discussion lately about “bailing out Detroit,” people are forgetting we already bailed them out, along with a lot of other cities and states. That’s where most of the Obastard’s vaunted “Stimulus Package” went back in 2009.
Good question. They already took Howdy Doody off the table.
Great point and true, it shows just how far gone they are.
If they bail out Detroit, then there is NO reason for any city to tax its citizens any longer. If federal help is good enough for that city, it’s good enough for all cities.
Why should people pay not only for their city but also pay, through their federal taxes, for other failed cities as well?
Rattner paid a $10 million settlement for pension fraud to NY.
I’m wondering if there’s any exposure in Detroit once the unwinding starts.
What color lipstick do they want to use on this pig?
Bailouts are wrong and set a bad precedence. TARP bailed out the banks and Wall Street which gave rise to the Occupy Movement. It wont stop at Detroit, more cities will follow if we let this happen. Wealth distribution on a grander scale.
He stole my retirement money and gave it to his UAW flunkies.
He needs to be shot
People in Hell want ice water.
Did the federal government offer to bailout any of the “ghost towns” in the west when the gold and silver ran out? How about any of the thriving cotton mill towns in the south when foreign interests took over the cotton business? The one-factory towns that died when exorbitant taxes and regulations drove them offshore?
You crawl into bed with the dogs, you get fleas. The union sponges dried up the money, and ran the auto industry out of Detroit, it is, what it is.
” It wont stop at Detroit, more cities will follow if we let this happen. “
I agree, but who is going to stop it?
We have enough problems here in Illinois. No thanks.
What’s the only difference between the US Federal Government and Detroit?
The Feds have access to a printing press...
Give Detroit to the illegal immigrants. I bet they will turn the place around?
Whether you liked the auto bailouts or not, at least you could argue that supporting the company would keep people & suppliers working and paying taxes, and the economy going.
So what’s the possible rationale for saving the City of Detroit?? Most people there don’t work, most don’t pay any taxes, most contribute nothing of any value to society. And then a few years down the road, when all that bailout money is gone, we just have to face the exact same situation all over again.
Apples and oranges - bailing out Detroit would be the definition of “a real waste of money”.
I’m coming around to where I think it would be OK to use federal tax money to bail out Detroit. After all, they’re going to waste our hard earned tax money on some worthless project to buy votes. What’s more worthless than Detroit? And the Detroit folks are going to vote Democrat anyway, so it won’t shift any votes.
The muzzies are already taking over - buying up huge bits of property.
The first city that goes bankrupt and doesn’t get a bailout is flicking the first domino.
It’s gotta happen eventually.
But, I think they will bale out Detroit. What’s a democrat party for if not for using the money of responsible people to bale out other democrats?
Then taxpayers can bail out Philadelphia, Chicago, the entire state of California...
And the unfathomable debt of the Federal government...
How wonderful to live in a world where someone always bails you out...
Any chance of finding a grown up to run things for a while?
Rat-man might have a point if the people affected by the hurricane had voted for it to hit them.
Did they have my interests in California in mind when they made the decisions that they made?
Give Detroit to the illegal immigrants. I bet they will turn the place around? ...
I’ve been wondering the same thing. Incorporate some kind of immigration reform with a Detroit homestead act.
You get addicted to the rush of spending a billion dollar at a time.
Bankruptcy seems like a good solution for Detroit. Let it break up, and downsize. Maybe the leftist self-seekers will abandon ship, and the small businesses that are moving in can have a bigger say about Detroit’s future.
All of them.
Right...then “O” the upstart can put on his President ‘costume’ and save the day!!
Spare me this farce!
No, thanks. DemocRats created the mess, let them fix it ... WITHOUT my money.
If Obama had a city, it would look like Detroit.
14 Cities That Are Being Eaten Alive By Public Sector Workers
The reason why public-sector pension costs have not been addressed is that the full bill has never been revealed to taxpayers.
Top Ten Most Dangerous Cities in America (Each Led by a Democrat)
The First 10 City Pensions That Will Run Out Of Money
heckuva a job, ratties.
“I didn’t vote for any of the leaders in Detroit. Why should I have to pay for their mistakes?”
Because you voted for the guy who will bail them out. Ok, maybe not you. But 51% of “us” did.
Let us give Detroit a bailout Chinese style. All former officials that voted for financially unsound budgets will be guilty of economic sabotage during our war against terrorism. It means penalty, death by firing squad. Body will be released after the family pays for the executioner/s bullet. Their family members will lose all ability to get federal aid for anything for the next three generations. If Detroit agrees to those terms, money and credit will be extended.
There is NO way 0bama DOESN'T bail out Detroit. Buying votes is 0bama's specialty!!
Politically it does not make sense either. Detroit will vote Democrat as they always do in the next election whether the city is bailed out or not. Bailing the city out does not change Detroit at all. Detroit can only change once their politics and their will to work change. Giving that city money will just be throwing in the fire.
If Obama bails out Detroit and screws the bond holders, how does he explain to the rest of the bankrupt rat nests that he just destroyed their credit ratings? Will anyone ever be willing to buy municipal bonds issued by a Rat controlled city again?
And I'm not kidding, either. After former Mayor Coleman Young essentially ran the city into the ground with is ill-advised, racist policies, they need to essentially re-do Detroit city government from the ground up and reduce the city limit size so Detroit is a far more manageable city.