This week’s winner of The Biggest Damn Lie is GOP presidential candidate Mitt Romney.
Romney is trying to claim — as he has before — that the President followed his advice by putting GM and Chrysler through a managed, or planned, bankruptcy. He is trying to take credit for that idea.
Chrysler and GM went through a managed bankruptcy, but a managed bankruptcy requires someone to lend companies money until they get back on their feet. The problem was no private lenders — not even Romney’s old firm Bain Capital would lend the billions of dollars they needed. Without the bailout authorized by Presidents Bush and Obama, the automakers would’ve had to shut down, close up shop and try to come back at a later date. So, a managed bankruptcy with private-sector lending was impossible, and Romney, the former financial firm executive, knew, or should have known that.
But that hasn’t stopped him from lying about it.