To the Editor:
The Obama campaign machine is attempting to portray Gov. Mitt Romney's opposition to the General Motors seizure by the Obama cabal as outright opposition to helping the auto industry. Nothing could be further from the truth.
Gov. Romney rightly supported helping the industry, but rightly opposed the manner in which the Obama group wanted to proceed. Romney felt GM should simply go through a normal bankruptcy proceeding, during which some restructuring of management could be achieved and some of the debt load of the company could be lessened. This could easily have been managed with federal loan guarantees, not loans.
But the Obama regime saw an excellent opportunity to cement their relationship with the unions. Using public funds (that's our tax money), they purchased a majority of the stock, tossed aside 200 years of bankruptcy law, along with tossing stock and bond holders, who had secured debt, out in the street.
Obama gave the United Auto Workers 17 percent of the company in lieu of the unsecured debt owed them for pensions and benefits. And for good measure, following Obama's creed of "punish your enemies," he stripped the pension funds from 22,000 non-union Delphi workers (Delphi is a GM subsidiary) to top off the UAW pension funds.
GM still owes taxpayers nearly $20 billion and the stock is down dramatically from its re-issue in 2010. GM may be alive, but it's on life support.
In summary, the GM seizure was a way for Obama to transfer a massive amount of our tax money to the unions to thank them for their support, shore up his campaign funds via union contributions, and to buy a bundle of votes, all under the guise of "bailing out" the auto industry.