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One More Time: Parsing 'Let Detroit Go Bankrupt'

The sentence is wrong not only because Ford never sought a bailout but also because bailouts saved GM and Chrysler.

Secondly, while Romney backed "a managed bankruptcy," he expressly did not back the essential concept of government-provided debtor-in-possession financing, offered to GM and Chrysler while they were in bankruptcy. No one else would finance the companies with the U.S. near a depression. Without U.S.-backed DIP financing, these two and many of their U.S. suppliers most likely would not have survived.

Romney's concept was that "the federal government should provide guarantees for post-bankruptcy financing and assure car buyers that their warranties are not at risk.

"In a managed bankruptcy, the federal government would propel newly competitive and viable automakers, rather than seal their fate with a bailout check," he wrote, in his last sentence.

Nearly every expert agrees: Romney's "managed bankruptcy" would not have been enough to save Detroit.

-- Written by Ted Reed in Charlotte, N.C.

>To contact the writer of this article, click here: Ted Reed

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