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Beltway Confidential

Jay Carney says Obama already let Detroit go bankrupt

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Beltway Confidential,Joel Gehrke,Barack Obama,Detroit,Detroit Bankruptcy,Jay Carney

With the 2012 election now over, President Obama's team no longer feels the need to adopt a feel-your-pain pose regarding Detroit.

"Is the president going to let Detroit go bankrupt?" Fox News' Ed Henry asked White House press secretary Jay Carney.

"Ed, I think that happened awhile ago," Carney replied.

A federal judge allowed Detroit's bankruptcy to proceed in an order issued earlier today.

The phrase "let Detroit go bankrupt" was a consistent theme of the 2012 campaign. Republican nominee Mitt Romney had argued against the bailout of the auto industry in a New York Times op-ed that ran under the headline "Let Detroit go bankrupt."

Obama jumped on the line as he attacked Romney, especially in Ohio. “[W]e refused to throw in the towel and do nothing,” Obama said. “We refused to let Detroit go bankrupt. I bet on American workers and American ingenuity, and three years later, that bet is paying off in a big way.”

White House officials have so far rejected the idea of giving the city of Detroit a bailout. "There is nothing we can do to help on the bankruptcy; there is no bailout,” Gene Sperling, director of Obama's National Economic Council, told the New York Times. “However, we want to look at what could we do to help Detroit through existing resources and mobilization” of public and private partners.

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