Government Motors Redux

by Steve on June 1, 2009

Chapter 11.  No big surprise here.  The free market forces have been pushing GM towards this inevitable outcome for months now.  The first $20 billion was supposed to keep it from happening.  Chapter 11 was to be avoided at all costs.  It was supposed to be the end of the world.  Many economists were recommending that we not interfere, allow GM to file Chapter 11 and reorganize as a stronger company.  We could have saved the $20 billion and GM would have emerged lean, mean, and remained a viable part of the capitalist machine.

The filing allows GM to continue operations while protecting it from creditors.  Guess who that is – us.  Or U.S. as you prefer.  Now we pump another $30 billion into a failing company that will end up being a government entity.  Think Amtrak. Good money after bad and all that.  Does this mean that warranty claims will be paid in the form of tax deductions?

Food for thought: BHO has never run a business.  Ever.

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