You're watching...
Rick Newman of U.S. News and World Report discusses the bailout of GM and whether the Obama Administration should campaign on saving the auto manufact...
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
-- General Motors.
Rick Newman from US news and world report is -- is it true to say and for the -- the claim that he saved -- General Motors.
I think it is it's not clear how General Motors -- to survive without the government being the one that basically said we -- gonna finance this bankruptcy process.
What what would have happened in General Motors -- -- fragmented into different pieces but -- being bought by some other automakers.
I mean it's possible parts of it may have survived but it would have been more disruptive for sure than what we saw.
The implication from the president is that he saved one million automotive jobs implication being that have the government not stepped in all of those million jobs would have gone.
That -- not the case.
Well that's from a research group in Michigan it's consider reputable.
Who knows what the right number is clearly it saves some jobs in the short term.
You know I think part of the problem with this bailout is again it's the way it was packaged and sold to taxpayers back in 2009.
We know now this is going to be a long term it's either going to be a long term investment by the US government or -- is gonna lose a lot of money taxpayers are gonna lose a lot of money -- probably should've said.
Look this is gonna take a decade or more to really get this straightened out -- we're making a long term investment in this industry and in this flagship company.
Bear with us they didn't say that there was -- -- short term we'll get in we'll get out everything begin.
That bond holders lost everything -- -- -- -- lost everything management lost big time including that I -- -- yet but the pensions -- tens of thousands of management people that gone.
The people who got the money with the unions essentially they would -- -- is that correct what do you is.
Only now -- part of General Motors and they didn't have to accept a lower outpace structured seven -- highest -- -- new -- but they -- get that pension and benefit -- plan topped off with government money.
That came from director from the government did.
I'm not sure that retail store but the unions clearly benefit on this this was no doubt it was a play the -- -- -- to the tune of twenty billion dollars Pall mall.
That's what it cost for the president we using alimony to bail out General Motors that's our -- -- -- -- we're waiting for waiting for that stock price to rise in the government's -- shares I mean it's possible this could that could happen in.
I don't know five or seven years we we've seen a surprising turnaround AIG for instance which is now been able to pay back most the money got from the government.
They just gonna take a long time GM the question is will -- government.
Stay invested in that company are they just gonna send him a Mitt Romney has said he would just sell those shares -- -- -- and get the taxpayers out.
-- -- -- what I think of it I mean like a value judgment.
You sell a -- -- expense out general noticing socialist government can hold hold their shares as long as it once why shouldn't.
So you don't -- about return to the private sector I think it's an ugly situation but I favorite taxpayers getting as much of their money back as shown in -- private enterprise companies sink or swim on their own merits having had four years of bailout by the taxi tell it to the Wall Street banks and in other that the huge firms that are part of the firmament.
Of the US economy yes of course they should agree in reality they couldn't it would have easily -- for many many companies before he's doing quite --
