Tuesday, November 23, 2010

Updates on GM

GM has gone public again, and with significant investor interest. Many in the media seem to have forgotten how close to disaster GM came, and how dramatic the fallout would have been, at GM as well as its massive supply chain. 

There is a excellent write-up by "thebigotbasher" on GM's coming out party at The Conservative Lie. Give it a read. I'll just amplify here that Republicans are pretty miserable shits for trying to talk down GM's prospects. It seems clear they do not want to see GM succeed, at least for the next two years, because that success story will be forever linked to President Obama. They have been howling about Obama's heavy socialist hand on GM for months. They, of course, are suggesting that government do nothing, and let the magical free market pass its verdict on GM, and Chrysler as well. They do this because GM's failure will be forever linked to Obama. Dick Cheney, who is so often wrong, was not wrong in 2008 when he urged Republicans to get behind a bailout. He knew, and publicly stated, that if GM went under with Bush in the White House, the Republican Party would be seen as the party of Hoover.

Speaking of (mostly)Republican disparagements on GM, Jay Bookman suggests conservatives might want to issue a recall of their past public statements. He has an excellent compendium of quotes from critics who were convinced that govenment aid to GM was complete heresy. Here are just a few:
    “Every dollar spent with GM is a dollar spent against free enterprise.” -talk-show host Hugh Hewitt

    “Now the government has forced taxpayers to buy these failing companies without any plausible plan for profitability. Does anyone think the same government that plans to double the national debt in five years will turn GM around in the same time?”– U.S. Sen. Jim DeMint, R-S.C

    “I see no hope whatsoever for the situation. I think the $50 billion might as well be kissed goodbye. I would expect that this is just the beginning.”– conservative policy consultant Wendell Cox
You might think Republicans would have a bit more confidence. When Chrysler needed government support in the 1980s, far-left socialist Ronald Reagan was there. Chrysler recovered, paid back its loans, and was viable for a generation.

There is so much more on this, including the caveat that it remains to be seen how GM will ultimately turn out, but I got to get out of here for now. 

Gotta get a bird.

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