Obama has been decisive in Auto bankruptcy case. While the intent is commendable, letting Auto companies go bankrupt will damage the US economy more.
Auto Companies represent a really big and powerful wealth distribution engine. At this point, wealth distribution engine health determines how much bailout actually reaches the common person who is at the heart of bailout.
Obama saved banks to ensure credit lifelines to the common person survive. But if auto companies go bankrupt, they take pensions, incomes and multipliers with them. It will be like preventing heart blockage but stabbing the patient!
I hope Obama gets his team to explain these things to him before he signs off on anything! Just pray!
Hi Rahul - The other problem with the situation is that now the government is the owner/operator of the business - even to the point of guaranteeing car warranties. So, instead of processing the bankruptcy with a federal court-appointed trustee's oversight, the feds are just going to be running the company. This means that the rank and file are now government employees, no?
ReplyDeleteNow putting aside the comfort that fact provides, can you imagine the customer experience that will ensue should the necessity arise to make a warranty claim?