Reason Writers Around Town: Shikha Dalmia on Obama's Failed Auto Bailout

According to President Barack Obama, if his administration hadn't infused $80 billion into GM and Chrysler, the companies would have hemorrhaged to death. Financial markets, themselves in panic mode, would not have given the car giants the funds necessary to restructure through Chapter 11 bankruptcies. Hence, they would have had to shut their factories, sell their assets for scrap, and liquidate. And this would have bankrupted auto parts suppliers, shut down dealerships, laid off 1 million workers, and devastated entire communities. GM and Chrysler may never repay taxpayers in full, the administration's line goes, but any loss is less than the cost of this potential economic Armageddon.

That narrative might make for a great horror movie, observes Shikha Dalmia in her latest column for The Daily. But any resemblance to real world events is purely coincidental.

Read all about it here.

Comments

[Sinic]

Does anybody expect different from a Chicago machine politician?

[Mainer]

When he presented himself as a reformer from Chicago, that was bullshit right out of the gate.

[Platypus]

People used to laugh at these Chicken Little types. Now they're setting policy.

Super.

[Old Mexican]

According to President Barack Obama, if his administration hadn't infused $80 billion into GM and Chrysler, the companies would have hemorrhaged to death.

This statement tells one unequivocally that the Obama administration was bullshitting us - a failling, badly managed company will KEEP bleeding money no matter how much additional money you throw at it.

[Old Mexican]

It [the government] gave Chrysler's secured creditors, who would have had priority in a normal bankruptcy, 29 cents on the dollar. Chrysler's unions, on the other hand, got more than 40 cents, even though they are equivalent to low-priority lenders. This made a mockery of longstanding bankruptcy law[...]

When it comes to the little people, laws are there to be obeyed no matter how good or bad they are [Tony, Edwin dixit]

When it comes to the government, however - why, how can laws get in the way of Social Justice?

[Kevin]

Reason's flavor of the moment-Paul Ryan whole-heartily endorses auto bailouts.

*The message brought to you by Big Government Republicans who are responsible for the content of this ad & along with the Democrats digging this big shithole of debt that our nation will never pay off.