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DAD'S SPEECH FOR TOMORROW NIGHT
AND HE'S TIGHT-LIPPED.
HE WON'T SAY WHAT HE'S GOING TO
SAY.
>> HE'S A GOOD SON, THERE'S NO
DOUBT ABOUT THAT.
A CNN REALITY CHECK ON PRESIDENT
OBAMA AND THE AUTO INDUSTRY WITH
WHAT WE JUST HEARD FROM WHAT THE
UAW HAD.
ERIN?
>> MR. KING WAS SPEAKING AND
THEY HAD ROUSING APPLAUSE.
THEY ALL HAD SIGNS.
AND A CLAIM WE HAVE REPEATEDLY
HEARD TIME AND TIME AGAIN AT
THIS CONVENTION IS THAT
PRESIDENT OBAMA SAVED THE AUTO
INDUSTRY, STRICKLAND HAS SAID
IT, FIRST LADY MICHELLE OBAMA
HAS SAID IT AND WE HEARD IT
TONIGHT FROM THE AUTO WORKERS
UNION BOB KING.
WHAT DID MITT ROMNEY SAY?
LET DETROIT GO BANKRUPT.
THAT IS ACTUALLY FROM AN OP-ED
IN 2008.
IT WAS TITLED, LET DETROIT GO
BANKRUPT, BUT I THINK WE SHOULD
MAKE IT CLEAR THE "NEW YORK
TIMES" GAVE IT THAT TITLE.
MITT ROMNEY HIMSELF TITLED IT A
MOVE FORWARD FOR THE AUTO
INDUSTRY AND HE TITLED IT
BANKRUPTCY.
>> ROMNEY WAS REALLY MAKING AN
ARGUMENT AGAINST THE BAILOUT,
NOT FOR THE LIQUIDATION, NOT FOR
THE WIPING OUT OF THIS COMPANY.
HERE'S WHAT HE WROTE.
THE AMERICAN AUTO INDUSTRY IS
VITAL TO OUR NATIONAL INTEREST
AS AN EMPLOYER AND AS A HUB FOR
MANUFACTURING.
A MANAGED BANKRUPTCY MAY BE THE
ONLY PATH TO THE FUNDAMENTAL
RESTRUCTURING THE INDUSTRY
NEEDS.
THE FEDERAL GOVERNMENT WOULD
PROPEL NEWLY COMPETITIVE AND
VIABLE AUTOMAKERS RATHER THAN
SEAL THEIR FATE WITH A BAILOUT
CHECK.
THE FUNDAMENTAL ISSUE HERE IS
NOT WIPING OUT ALL THOSE JOBS
BUT INSTEAD KEEPING THEM GOING,
JUST A DIFFERENT WAY.
THE SECOND PART OF KING'S
STATEMENT, MORE THAN A MILLION
JOBS SAVED, SIGNS ALL OVER HERE,
PEOPLE WAVING THEM.
1.2 BILLION JOBS SAVED, THE
OBAMA CAMPAIGN HAS USED THAT
MANY TIMES, BUT THEY ALSO SAY UP
AND DOWN THE SUPPLY CHAIN.
THEY TALK ABOUT EVERY
RESTAURANT, EVERY AUTO SUPPLY
PLACE, EVERYONE WHO BENEFITED
FROM THEM BEING THERE, SO
BASICALLY THOUSANDS OF WORKERS
INVOLVED WHEN YOU TALK ABOUT THE
MULTIPLIER FROM MANY MORE.
SOME OF THAT CAME FROM THE
RESEARCHER.
>> IT WOULD ASSUME THAT IT WAS A
COMPLETE LIQUIDATION.
AGAIN, THE COST OF THIS IS ALSO
SOMETHING THAT IS VERY
POLITICALLY IMPORTANT.
HOW MUCH DO TAXPAYERS PUT INTO
GM?
YOU AS A TAXPAYER WITH GENERAL
MOTORS, SPECIFICALLY, RIGHT NOW
YOU OWN ABOUT A THIRD OF GM.
THAT'S HOW THE BAILOUT WAS
STRUCTURED.
GM TODAY CLOSED ON THE STOCK
EXCHANGE AT $21.76 A SHARE.
NOW, IN ORDER TO BREAK EVEN, SO
FOR TAXPAYERS YOU OUT THERE TO
MAKE THAT MONEY BACK, GM SHARES
WOULD HAVE TO RISE TO BETWEEN
523 AND $670 A SHARE.
TREASURY RIGHT NOW SAYS THEY
EXPECT TO LOSE $25 BILLION OR
MORE WHICH, OF COURSE, IS
INTERESTING WHEN YOU LOOK AT
BANKS SPECIFICALLY, TAXPAYERS
HAVE MADE MONEY.
THEY'VE LOST MONEY ON GM RIGHT
NOW AND ON AIG, THE INSURER.
BUT WHEN YOU LOOK AT THE AUTO