Wednesday, April 1, 2009

Banana Republic Datapoint #X+1

Wow, those keep coming faster than I can keep up. Please consider the latest:
"President Barack Obama believes a quick, negotiated bankruptcy is the most likely way for General Motors Corp. to restructure and become a competitive automaker, people familiar with the matter said."

Let me repeat this:
"President Barack Obama believes a quick, negotiated bankruptcy is the most likely way for General Motors Corp. to restructure and become a competitive automaker, people familiar with the matter said."

The march towards the banana republic continues full speed. After the confiscation of WaMu by the FDIC, the forced Citi-Wachovia merger (remember that the FDIC was pushing the Citi deal with taxpayer guarantees vs. the Wells deal), the transfer of one generation worth of productive capacity to AIGs counterparties, we just had the president firing the CEO of a major industrial corporation, and now the same president thinks that Ch. 11 is best for the two automakers, after having bailed them out recently. I am sure Obama is a smart guy but what made him an expert on corporate business decisions? Probably the "community organizer" experience.

President Obama, shouldn't you focus instead on the insolvent nature of the US federal and state governments?

Just asking. If I wanted to be in any way involved with GM, I would have bought their stock and voted with my proxy. I really do not like seeing my tax dollars going to a financially and morally bankcrupt corporation and its corrupt useless union, and I really do not like seeing my elected representatives meddling with industrial policy.

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