But I thought…

Posted: May 1, 2009 in automotive, finances, politics
Tags: , , , , , ,

Weren’t we told that Chrysler and GM were too big to fail? That a bankruptcy would force our economy to spiral out of control? If that’s true, why is the government saying that a pre-packaged, government-backed bankruptcy is the way for Chrysler to go? What happened to “they’re too big to fail?”

Obama used the same excuse for the auto industry that Bush used for the banks to justify giving them billions in TARP money. Guess who’s gonna come out on top in this bankruptcy. Well, the government is now the majority shareholder in Chrysler. The UAW is also going to hold a serious stake in the company. And Fiat will have about a 20% stake, but that would’ve happened w/out the bankruptcy filing.

Tell me, is it a good idea for unions and government to have the majority stake in a company? I say no. What decisions will management be able to make w/out consulting with the union or government? My guess is that Chrysler will be making the same cars fifty years from now with little, if any, profit.

Remember when Obama said the government would back the warranties of GM and Chrysler if they went bankrupt? That doesn’t include my warranty since I bought my vehicle at the end of August last year. So if it breaks down, it ain’t covered.

This doesn’t instill a lot of confidence in me. But then again, I’ve always been a supporter of the free market. Call me crazy, but I think they should file a normal Chapter 11, restructure themselves, keep the government out of it, and they’ll be better off in the long run. Looks like the next American-made car I’ll buy will be a Ford. At least they’ve got the balls to tough it out on their own. And guess what? They’ve been doing better since they said they weren’t going to take any taxpayer money. They’re eliminating 40% of their debt. Their stocks are going up. I’m seeing more and more Fords on the road. Looks like they were the only smart ones out of the Big 3.


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