Obama says “no” to more GM money – sorta
First, Obama “asked’ Rick Wagoner to step down. I’d love to hear more details of that. Mr. Wagoner is set to get $22 million, since GM released him before his contract expired. Start up the outrage machine. Why is it that taxpayers expect more control over loans than banks have? If Bank of America gives you a home loan, do they tell you what color to paint the bathroom? NO. If you get a business loan, most lenders assume you’ll make prudent business decisions, which sometimes include paying people vast sums of money. But REALLY, banks don’t care how you spend it, as long as you repay it. Is GM closer or further from being in a position to repay the American people?
This morning, Obama rejected GM and Chrysler’s bailout plans, saying they, “didn’t do enough”. So they’re not getting any money, right? Not exactly. Obama is “extending a lifeline” to them. It’s a rope made out of gold, apparently.
Obama is also forcing Chrysler to merge with Fiat, as a condition for receiving further government money (except for what he’s still giving them). I’m sure that won’t tilt the negotiations in Fiat’s favor at all.
Obama also said the U.S. will honor GM and Chrysler warranties. That sure makes me feel better. The same place that spends millions on waste will be honoring my car’s repair bills.
Our President hopes this will be being a new era for the car companies, where they can move in a new direction, including environmentally-friendly autos. And yet, his own government says the Volt can’t save GM.
Lastly, Obama says that he doesn’t want the government running GM and Chrysler. And yet, his team is preparing a business plan for them. Who in Obama’s team has EVER done a business plan before? Apparently no one- because if they had, they’d know that a business plan is pretty much telling a company how to run.
Gosh – this is SO MUCH better than bankruptcy, isn’t it?