Is anything his fault?

[whell]

Originally Posted by beej

Interesting discussion of the GM/Chrysler bailout. You did fail to mention what the consequences would have been for those industries that supply both GM and Chrysler had the companies been allowed to simply shutdown. Oh, by the way, every industry observer worth listening to has indicated such an eventually truly would have been catastrophic.

And, again, what specifically are the Obama policies that have been the perfect storm to our economy?

The supply chain would have been in disarray, but I suspect not mcuh worse off that with a the pre-pack bankruptcy. It is in GM, Ford and Chrysler's best interest to nurture their supply chain. They've moved much inventory management and assembly functions to their suppliers. Vehicle manufacturing is far more "modular" today, with the auto factories doing more assembly of modular components than ever before. The modules are manufactured by suppliers and shipped to the auto manufacturers, who then assemble the modules into the finished vehicle. Romney talked about this in his article (that has since been misquoted and taken out of context) with the suggestion for debtor in possession financing. DIP financing would have given suppliers a level of protection in the bankruptcy process, since their debt would have been given priority in either a reorganization or liquidation.