During this campaign season, I have noticed/heard President Obama (it pains me to say that) refer to his bailout of the auto industry. Nothing could be further from the truth. He did not bail out the auto industry, but effectively bailed out the unions. The auto industry was merely a side effect.
He fired the CEO of GM (which I still contend was unconstitutional); then used millions/billions of tax payer money to transfer the majority ownership of the corporation to the union bosses. In the process, he arbitrarily put the bond, or stock holders, on the bottom of the list. If you had GM stock, you took a beating.
The irony of all this is, that if the government would have stayed out of the process, GM and tax payers would have come out in about the same place except that both would have been better off. GM would be in about the same spot, but would not have the massive pay back hanging over its head; and the tax payer would not still be on the hook for all the monies. Thusly, both would be better off.
Just to mention one more way GM would be better off is that they would still have me as a loyal customer. But, alas, I will never buy another product from GOVERNMENT MOTORS.
You see, we have laws in place to handle such problems. The bankruptcy laws, in this case–chapter 11–for reorganization, would have been sufficient.
Please refer to, or watch, the following video: http://www.youtube.com/watch_popup?v=Lvl5Gan69Wo
After watching this, you can see why the union bosses should be furious. President Obama has now turned against them (under the bus comes to mind). Obama, GOVERNMENT MOTORS, and China what a group! Who will crook who first?
Common Sense says to buy American so that GOVERNMENT MOTORS, China and Obama get what they deserve. GOVERNMENT MOTORS goes bankrupt, China rots from the stench within, and Obama becomes unemployed.