Originally Posted By: Irwin Schwab
http://newsbusters.org/blogs/noel-sheppard/2010/11/21/robert-reich-palin-realistic-candidate-president-not-clear-gm-bailout

 Quote:
Former Clinton labor secretary Robert Reich made a couple of rather startling comments on ABC's "This Week" Sunday.

During the Roundtable segment, the devout liberal not only defended former governor Sarah Palin as a "realistic candidate" for president, but also questioned whether or not the government bailout of GM was necessary (video follows with transcript and commentary):




CHRISTIANE AMANPOUR, HOST: Let's switch right back to here and economic security. G.M. today this week had success, initial public offering. The bailout worked? The saving G.M. worked?

ROBERT REICH: Well, it worked, Christiane, to the extent that, indeed, G.M. is now worth $50 billion, if you believe the stock market, and before, in the old G.M., was worth $25 billion.

But what happened during the bailout? Actually, it was a -- it -- it was not so much a bailout as it was a reorganization under bankruptcy, and they got rid of $80 billion of debt, they got rid of thousands of jobs, divisions that were not functioning. Wall Streeters came in and reorganized G.M.

Why do we suppose the exact same thing would not have happened under Chapter 11 bankruptcy, reorganization? It's not clear that the $50 billion of taxpayer money was necessary.


Quoted and reposted for truth.