From Mickey Kaus:
I don't want to sound like Veronique de Rugy here, but who will pay the price if when this half-baked "restructuring" fails? In normal "capitalism at work," those who would pay the price will be those who made the deal and put up their money--the capitalists. (Query: Would Scott Sperling invest his firm's money in this dubious proposition?) If When Obama's plan fails, the monetary loss will fall not on Obama, but on the taxpayers. It will likely be made up somehow by the taxpayers (via higher tax assessments or inflation). That's not "capitalism at work." It's something else at work. But I'd be all for it, if I thought it really would work. It won't, and it will be Obama's fault. (He'd certainly get credit if it succeeded.)
What will happen if GM and Chrysler still go bankrupt after all of this money has been poured into them? Obama has saved Chrysler and the UAW, but pension plans which invested in Chrysler bonds are having problems because bondholders were sacrificed in the restructuring--how is this helping the economy? Somehow wealth and jobs have to be created--I don't see spending billions on downsizing GM and Chrysler doing it.
1 comment:
HI KU!! HAHA--very punny --from the English major!
Just talked to Mrs. Ku on the phone. I see you haven't a lot of commenters here --and that means you probably don't go blogging elsewhere --because that's how we build up an audience.
Come over to mine --which has been a little quiet lately. The most comments I ever had on a blog were 200 plus --and I suppose half of them were mine!
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