The Wall Street Journal has an article (which can be found here – subscription may be required) that reports on President Obama’s statement that the auto bailout was a success. The President says:
If we had done nothing, not only were your jobs gone, but supplier jobs were gone and dealership jobs were gone, and the communities that depend on them would have been wiped out.
This statement is simply nonsense. Recall that in the early 1980′s Chrysler was on its last legs. It got a federal loan, but went through bankruptcy. Bondholders took a haircut, but the shareholder (aka owner) wasn’t displaced. With the release of the K Car, Chrysler went on a pretty good run of success. Move forward 30 years, and the overall economics of the auto industry, the credit bubble, and the tough global competition forced Chrysler into the need of another restructuring. Bankruptcy would have worked all over again. But the President had a different plan: spread the wealth.
The end result of the President’s takeover has been to scare the dickens out of every other business, company, and entrepreneur in the country. As previously reported on this blog, those same businesses, companies, and entrepreneurs are now hoarding cash and slashing costs (aka payrolls) due to the fear that the President and his minions will raid their companies, too, should the opportunity present itself.
Instead of saving jobs, the President’s policy has led to the greatest loss of jobs in decades. I don’t expect him to admit his mistake – in politics that is bad form. However, he could do the next best thing which would be to keep quiet about the failure of his policies.
Government Motors should have kept Pontiac and perhaps sold it off as a Porsche-like niche car company (talk about jobs saved and American can-do restored).
It really is a shame, because after a terrible few decades, Pontiac was finally starting to get things right, I was even considering one. Then the axe fell. Based on what? That they would have been ‘too’ successful?!?
I’m still trying to figure out why the Obama regime forced many of the GM dealerships to close soon after the take over.
Marco Boyce wrote, “Government Motors should have kept Pontiac and perhaps sold it off as a Porsche-like niche car company (talk about jobs saved and American can-do restored).”
GM needed someone like Harley Earl and/orJohn DeLorean to save Pontiac. Pontiac was reborn in 1957 and remained the best of the best through 1967. Then, it started going down. If that decade of success could have been copied a few years ago, Pontiac could have been a Porche-competitor.
“If that decade of success could have been copied a few years ago, Pontiac could have been a Porche-competitor.”
Wow anon I finally found something we agree on
68 and 69 were good years for Pontiac. Not sure about Delorean becuase his need for nose candy. But I’ll take a Delorean anyday.
C,mon wouldn’t you feel ridiculous get out of a Pontiac with those crazy looking Delorean gull doors. You need a Batman custom to drive a Delorean. My uncle has one. He broke the ceiling lights in the garage every time he got out.
” He broke the ceiling lights in the garage every time he got out.”
LOL !
Pure fantasy Charlie; perhaps “good” politics to suggest corps are hoarding cash in “fear” of Obama “takeovers.” But total crap in reality.
Most don’t yet trust credit markets; most still fear a second dip; a good many can’t yet assess impact of health reform; some just don’t know where/how to build new markets;a few can’t yet figure where marginal tax rates and cap gain policy will land into 2011.
All areas ripe for criticism of current admin.
But the government seizure refrain is just plain propaganda, particularly with GM + Chrysler which came begging for help.
They’re not afraid of ‘takeovers’…they’re afraid of the unknown; the cost of Obamacare, whether ‘cap and trade’ gets passed, and what that will cost, the spectre of another major housing/mortgage collapse, weak consumer confidence, and a host of other concerns that make one hesitant to invest vast amounts of capital.
After the Republicans regain control of the House, and start to reign-in Obama’s insane economic policies, you’ll start to see corporate and small-business investment.
there are LED ceiling lights available these days already, they are more expensive but does not consume too much electricity ~;*
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