Mike Kueber's Blog

December 19, 2012

The GM bailout

Filed under: Business,Issues,Politics — Mike Kueber @ 6:53 pm
Tags: ,

Bin Laden is dead and GM is alive.”  Many pundits believe this slogan, coined by VP Biden at his party’s convention, was the crucial in President Obama securing re-election.  Although Romney argued that America would have been better served if GM had gone through a structured bankruptcy, that nuance was lost on voters who don’t understand nuance. 

Today, more than six weeks post-election, an article in the NY Times confirmed what Romney claimed all along – i.e., Obama’s bailout of GM may have feathered the nests of the United Auto Workers, but it screwed America.  The Times article gives us the bottom line – America invested $49.5 billion in GM to keep it out of bankruptcy court and save its union contracts, and in return America will receive approximately 50 cents on the dollar.

Compare that return against the Wall Street and AIG returns, which were almost dollar for dollar, and you wonder why GM is considered a success story while AIG and Wall Street remain villains.  

This is the kind of economy that Ayn Rand warned us about in Atlas Shrugged.



1 Comment »

  1. another thing that sucks about the whole bailout is that i own a chevy and cannot get it repaired in my hometown… yep fredericksburg does not have a GM dealer. thanks for nothing obama. and thanks for doubling down on bridges and roads (the infrastructure we needed to boost manufacturing in 1940), and thanks for saving the auto workers even though they should retool and learn how to work in bio labs or health care since robotics are better at making cars than humans…

    Comment by q — December 21, 2012 @ 10:17 pm | Reply

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