Indefensible? Hardly according to Mark Zandi chief economist for Moodys
Originally Posted by Jack Hays
Bailing out Detroit - Philly.com
POSTED: February 26, 2012
The government bailout of the U.S. auto industry was a success.
Without financial help from Uncle Sam, General Motors and Chrysler likely would not exist today. The American auto industry would be a shadow of its former self. And the U.S. economic recovery would be even more drawn out and frustrating than it has been.
Saving the automakers was distasteful, but necessary.
Rehashing this bit of history is timely on the eve of the Republican primary in Michigan, where the economy has long been tethered to the auto industry. The potential GOP nominees have all spoken out against the bailout, which the Obama administration helped engineer. Yet it is worth remembering that when the bailout was being debated three years ago, in the teeth of the Great Recession, it had bipartisan support. And it was the Bush administration that provided the first substantial chunk of financial aid to the industry.