Clinton forgot to mention how Wall Street benefited from the auto bailout
Hillary Clinton’s desperate attempt at the Flint debate to paint Bernie Sanders as opposed to the bailout of the auto industry – which means he was opposed to supporting average workers – was as insane as it was dishonest. If she’d told the whole story (which, as we know, she’s not wont to do, ever), it would demonstrate even more how protective she is of Wall Street, and how unwilling she is, and will be, to end its shenanigans.
Thanks to Les Leopold over at CommonDreams.org for explaining this:
Hillary Ignores Wall Street Attack on GM
While noting that the ‘auto industry just had its best year ever,’ Hillary ignores the outrageous case of financial strip-mining at GM. She couldn’t mention it because it would also show the revolving door between the Obama administration and Wall Street.
Harry J. Wilson, the Obama administrator who helped to negotiate the GM bailout, then left for a hedge fund job. The 43 year-old Wilson and his investors proceeded buy up 34 million GM shares. Why not? By then he was a GM expert, trained at taxpayer expense.
He then demanded that GM use its cash reserves to buy back its own shares to make he and his investors tens of millions of dollars….for doing nothing at all.
The American people bailed out GM to save hundreds of thousands of jobs throughout the Midwest. Many of us hoped that once GM returned to financial health, it would use its reserves to build the most environmentally sound cars in the world, thereby helping retain U.S. jobs and help our planet survive.
Instead, Wilson pressures GM to use its precious cash reserves to buyback its own shares in order to put money into his deep pockets and the pockets of his investors. Increase GM wages? Increase training? Increase R&D. No way.
His wish was GM’s command. On January 13, GM announced a $5 billion stock buyback plan. (See here for more detail.)
But Hillary couldn’t talk about any of this. Because if she did, she would be forced to admit that her fairytale version of capitalism will never work as long as Wall Street dominates the economy.
Trying to tie Bernie Sanders to opposition to workers, trying to tie Bernie Sanders – as she did in tonight’s debate in Miami – to the Koch Brothers, are desperate measures. The chickens are coming home to roost, it appears, and Clinton is being outed as the Wall Street hack and corporate puppeteer she is. Wrote Leopold:
. . . Team Hillary wants to sound tough on corporate bad actors, while providing tax breaks to most of the private sector. She wants to rein in Wall Street’s risky behavior, without damaging its financial strip-mining operation. And she wants to let the market miraculously create better paying jobs for people of color, while remaining silent on the public sector and 20-year-old trade deals . . . Michigan voters saw it for what it is — Wall Street economics.