When President Bush began the bailout of GM and Chrysler, it was with the idea of keeping them out of bankruptcy and savings the millions of jobs that these companies directly and indirectly create. President Obama continued this policy and has given out multiple extra bailouts to the companies in the meantime. He even managed to get GM's CEO fired in the process.
What it is the result of all of this expensive government intervention? Bankruptcy for GM as well as Chrysler. And, of course, Chrysler sold to Fiat, an Italian company who will likely ultimately move the jobs to Italy. We're right back where we started. GM is even talking about leaving Detroit entirely, despite the fact that one of the MAJOR reasons given for the bailout was to save the struggling region.
Are we finally ready to bite the bullet and admit the bailouts were a mistake?
Tuesday, May 12, 2009
GM slouches toward bankruptcy, despite bailouts
Posted by Nomad at 4:55 AM
Labels: automakers, bailout, bankruptcy, gm, mistake
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5 comments:
Actually Fiat is only a minor partner - holding less than 40% of Chrysler's stock. The UAW owns 55% (maybe more) of Chrysler, so the chances of those jobs being exported is unlikely. Though with the union owning most of the company it's sure to be run into the ground - more so than it already has.
From what I've read, I believe that even though the UAW owns all of those shares, they only get 1 out of the 9 board seats so they don't have much voting power at the board level.
It still amazes me that GWB put us on this path. Conservatives would have never supported this bailout crap in the first place if it wasn't started by a "Republican" (that is in quotes for a reason). Much of their initial argument was blunted by the whitehouse support. THEN... once the Obama administration was in, they already had the implied consent of the country to "do something", even if that something will eventually fail and bankrupt the country in the process. I maintain that GWB has a lot to answer for and history will not be kind.
I agree GWB has a lot of blame on this one. He took the easy way out in his waning days, instead of really trying to wrestle with the issue. He was Conservative on moral issues, and essentially Liberal on economic issues. And now we're paying the price under a man who is Liberal on both sides of the coin.
not that it matters, but the hummer brand isn't on that wall mural
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