Car Czar Says Bailout Was Needed Because No Private Groups Were Willing To Rescue Detroit

As Republican presidential candidate Mitt Romney denounces the government's largerole in the bailout of two of Detroit's three automakers, former car czar Steve Rattner wonders who else Romney envisions stepping in.

"As a presidential aspirant, Mr. Romney evidently hasn't felt a need to be consistent or specific as to what should have been done to address the collapse of the auto industry starting in late 2008. But the gist is that the government should have stayed on the sidelines and allowed the companies to go through what he calls 'managed bankruptcies,' financed by private capital," Rattner, a former presidential adviser,wrote in Friday's New York Times.

 

AlleVier - 2/24/2012 4:24:12 PM

+2 Boost

Not to mention the fact that stocks are not bonds.

PLAY - 2/24/2012 6:10:24 PM

+2 Boost

Rattner is right. Credit markets were in a state of paralysis. The state had to be the lender of last resort.