SEARCH BLOG: ECONOMY
It's not official; it is inevitable. The Obama administration has decided that General Motors cannot be salvaged the way that banks were. General Motors was going to need 5-10% of what the banks needed to save a century-old bastion of American industry from a mess that the banks created and from which the banks were saved. But that was too much to ask for.
Step One: Eliminate the resistance.So, it is not yet official; it is inevitable that General Motors will go into bankruptcy. The government has failed to fix the financial system thereby insuring that General Motors cannot continue to operate in the absence of needed credit. Richard Wagoner has been named the official scapegoat for the failure of General Motors to operate without funds.Get rid of Richard Wagoner, the CEO, and his Board of Directors. Put the number two man in charge and bring in some new experience-less directors. Resistance is gone; compliance is achieved.Step Two: Eliminate the opportunity.Set an impossible deadline to reorganize and establish a necessary cash flow from banks that were bailed out, but that were keeping the cash to themselves. Set impossible demands; establish impossible obstacles. Opportunity is removed; capitulation is formulated.Step Three: Eliminate the resources.Take financial and legal control and direct the company to move quickly to bankruptcy. Financial alternatives were never available; bankruptcy was never avoidable.Step Four: Eliminate the blame.Establish the appearance of logic, reasonableness, compassion, and responsibility at each previous step so that the destruction of the company, the destruction of its suppliers, the destruction of its dealers, and the destruction of its unions can be argued to be beyond the control of the government. Enough money was given to demand change; not enough money was given to effect change.
President Obama has dictated that 60 days is sufficient to correct any financial crisis using the government's own performance as a model exemplar.Therefore, the only course of action for General Motors is capitulation and bankruptcy as dictated by the government as the controller and the government as the judge. And all of this accomplished without the benefit of anyone who knows anything about the automotive industry on the President's task force. That's so amazing. The leftists and eco-nazis can claim victory over the evil CO2-spewing corporation while the rightist can claim that a corporation that knuckled under to unions deserved its own fate.
Well, it looks as if we are all winners and Obama has indeed led us to hope and change... right?