Wednesday, July 06, 2011
GM in another hole
One of the biggest problems for GM for which they received $50billion from taxpayers to stay in business was a huge inventory of unsold vehicles. Obviously the insidious unions caused most of the problems, but unsold inventory contributed also. Apparently GM is pretty much back at the same point with unsold inventory that they were when they got taxpayer relief. Will GM need another infusion of taxpayer cash to fund lavish union contracts and will Obama skirt the Constitution to shore up union support for 2012?
Over at DougRoss@Journal, Doug sums the GM bailout debacle pretty succinctly...
You mean that abrogating bankruptcy law, screwing over secured creditors and rewarding Democrats' union supporters with billions in equity, tax breaks and subsidies didn't really fix GM?
He's right. Corporate welfare for GM didn't get them to improve their shoddy business practices any more than welfare to individuals motivates them to change the behavior that made them poor in the first place. Why change what you're doing when other peoples' money will be given to you for not changing?
US bankruptcy laws were completely ignored in order to funnel billions of taxpayer money to Obama's union friends. Who's going to stop the utterly corrupt Obama union machine from doing it again and using "too big to fail" as a rationale?