So, I have to admit, I hate politics. I don't follow them until I absolutely have to, which is usually about 24 hours before I vote. Which is why an email that a friend sent me yesterday hit me in the sweet spot of my voting research. It was a link to an article in "The Nation" entitled: Mitt Romney's bailout bonanza by Greg Palast.
It's a really long article (really, really long) that tells a very long (very, very long) and winding story about how Mitt Romney's $1 million investment (perhaps more) in Elliott Management turned into multi-million dollar gains. How does this relate to the auto bailout? Elliott bought up debt from auto supplier Delphi Automotive when it declared bankruptcy. Because Delphi was considered essential to the success of bringing General Motors and Chrysler back to life, according to the article, it got $12.9 billion directly or indirectly from the federal government.
So, if I'm connecting the dots correctly and the information in the article is accurate: When Elliott bought initial shares of Delphi in 2009 at 20 cents a share then sold those same shares in 2011 (post bailout) for $22 a share, well, that accounts for a 3000% profit. So, what exactly does that do to an initial $1 million investment? Hmmmmm ...
The last 2 graphs of this very (very, very, very) long story bring the point home:
Nevertheless, even if the Romneys were blind to their initial investment in Elliott, they would have known by the beginning of 2010 that they had a massive position in Delphi and would make a fortune from the bailout and TARP funds. Delphi is not a minor investment for Singer; it is his main holding. To invest in Elliott is essentially a “Delphi play”: that is, investing with Singer means buying a piece of the auto bailout.
Mitt Romney may indeed have wanted to let Detroit die. But if the auto industry was going to be bailed out after all, the Romneys apparently couldn’t resist getting in on a piece of the action.
So, the question I have to ask is: For a guy who appears to have benefited nicely from the bailout, how can he be so vocally against it? Or, is he against it for everyone but himself?
Please, discuss ...
And, um, by the way ... have you voted yet? If not, you should. Whether you're republican or democrat, it's important.
Filed under: News you can use
Tags: #decision2012, #election2012, 2012 election, auto bailout, automotive bailout, Chrysler, delphi, delphi automotive, elections, elliott management, general motors, greg palast, mitt romney, mitt romney's bailout bonanza, presidential elections, romney, the nation, vote, yourvote