The Bankruptcy of General Motors

in Economy

President Obama forced General Motors Corp. into bankruptcy on Monday and said the federal government will act as “reluctant shareholder” when it assumes a 60 percent ownership of the smaller car maker that emerges.

So not only has the United States government given bailout billions to private industry to prepare the former auto industry giant for bankruptcy, taxpayers will now be partnered ith the automaker and the President has pledged 30 billion more to Government Motors when they emerge from bankruptcy court.

The government’s partial stake in GM comes on top of a far smaller ownership of Chrysler LLC, as well as significant federal equity in banks, the AIG insurance giant and two mortgage industry titans — all victims of an economic crisis unrivaled since the Great Depression.

While the Democrats continue to try and spend the United States out of economic collapse, Some Republicans have lashed out at the latest plan.

“The only thing it makes clear is that the government is firmly in the business of running companies using taxpayer dollars,” said House Republican Leader John Boehner of Ohio.”Does anyone really believe that politicians and bureaucrats in Washington can successfully steer a multinational corporation to economic viability? It’s time for the administration to fully explain what the exit strategy is to get the U.S. government out of the board room once and for all,” Boehner said.

So it looks like we will continue to see the President beg and plead for Americans to buy American cars, (er uh especially those Government Motors Models) with no end in sight.
The president added , , “What I am not doing, what I have no interest in doing, is running GM.” Huh?

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