By any economic measure which rules out Mary Jane induced optimism, THE US IS NOT VIABLE after creating a budgetary mess which will break the next three generations, and see interest as our largest single expense.
Neither General Motors nor Chrysler submitted acceptable plans to receive more federal bailout money, the Obama administration said as it set the stage for a crisis in Detroit that would dramatically reshape the nation's auto industry.
President Barack Obama and his top advisers have determined that neither company is viable and that taxpayers will not spend untold billions more to keep the pair of automakers open forever.
In a last-ditch effort, the administration gave each company a brief deadline to try one last time to convince Washington it is worth saving, said senior administration officials who spoke on the condition of anonymity to more bluntly discuss the decision.
The govt CANNOT manage these things.
The unintended consequences will be, I guarantee you, STAGGERING and UNIMAGINABLE
FDR, in an effort to prevent the banks from unnecessary risk in the 30's, since the FDIC was now underwriting the people's accounts, approved REDLINING. This practice created, BY FEDERAL FIAT, areas of risk too high for banks to loan. FDR acted to protect the people's moneys, by protecting the banks which had failed and created crisis, and then created something which, 40 years later was seen as a linchpin of segregationist bank policy by denying mortages, and business loans to minorities (who lived in the redlined areas) thus prolonging increasing blight and despair.
The result? The Community Redevelopment Act, Fannie and Freddie which enforced legally and morally by FEDERAL FIAT the imperative to specifically LOAN in what were redlined areas, thus increasing risk to such levels that mortgage backed securities were invented to defray risk, and spread it out and make profit FAST, perhaps even knowing the situation was impossible. Louis XV and his paramour come to mind.
We all know.
The very bank failures FDR sought to prevent with HIS interventions.
Government intervention must be limited, sparing and exceptional.
Obama and his followers see it as a typical tool to be wielded against the greedy industrialists, bankers, and other who rape the workers and middle class. It's a domestic equivalent of the argument the muslim radicals have used about the USA despoiling the natural resources of their nations.
Business is tough. Inventing is tough. Profit is hard, not easy. Producing is a battle, always. Sales is a knife fight in a dark closet.
The government appearing as some 'deus ex machina' as if they have a clue, ESPECIALLY in an admin virtually DEVOID of anyone who has truly been brought along in business ANYWHERE is a joke. COSMIC.
The government making a judgement that GM and Chrysler cannot survive is a POLITICAL STATEMENT. Who are the beneficiaries of that fix, one wonders? Levin supporters? Stabenow contributors? WHO KNOWS?
The feds saying they are underwriting the warranties of anyone who has a repair if they buy in the next 60 days is another political joke. Can you imagine trying to get service with a picture of Obama as your warranty? Who you gonna call? How fast will Uncle Sam pay? 150 days?