Bailouts will always be needed to fix capitalism’s flaws

Romney is wrong to oppose auto bailout

Really? Steven Rattner, Obama’s “car czar” administered the auto firm bailouts. Rattner is telling the truth.

See the comments! Holy cow!

This is one of the most appaling (sic) pieces I’ve ever read.

Bail-outs will always be needed to fix capitalism’s flaws

Lest we needed another reminder, Thursday’s announcement that the Italian automaker Fiat had achieved the final performance target in its alliance with Chrysler underscored once more the remarkable success of the rescue of the American automobile industry.

No capitalist (and I consider myself to be a full-throated one) likes the notion of government intervening in the private sector. But we must recognise the rare moments when deviations from this principle are not only to be tolerated, but welcomed.

As the events of the past three years demonstrate, General Motors and Chrysler were such an undeniable exception. At the end of 2008, the entire auto sector was on the brink of total collapse, a near casualty of the financial crisis, oscillating oil prices, uneconomic labour agreements and poor management. General Motors alone lost $30bn in that single year.

Due to courageous decisions by both former President George W. Bush and President Barack Obama, the industry is now thriving. US sales of autos and light trucks rose last year by 10.3 per cent to 12.8m, compared to 10.4m in 2009.

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Romney is wrong to oppose auto bailout

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