Tennessee Senator Bob Corker spoke with White House officials about their plans for GM after Obama fired the CEO.
Corker said he spoke to Steven Rattner, chairman of the Obama task force, late Sunday and was told the administration might use a section of the bankruptcy code to conduct a quick restructuring and decide which plants will stay alive.
When I first read this, I mentioned to Sebastian that they could easily target red state plants first and make it a political game.
Oh, did I mention my uncle works for GM in Oklahoma, the only state to go more solidly red this year, and was told there’s a meeting for all workers (regardless of shift) on Thursday morning?
Obviously, I don’t know details about GM’s operations, and it may make sense to close that plant or to have substantial cuts there. But, when the WH is making personnel decisions, there’s always going to be room for political considerations and favors or punishment for friends and foes. In other words, we’ll never really know when cuts are made on the business merits or the political whims of Rahm & his buddies.
Uh, actually, we do know. A man who proudly claims that no crisis should go to waste will never forgo political whims for such useless things like merits.
Never.
Unfortunate, Bitter.
Had GM elected to not grovel to the Government and taxpayer dollars, they would have gone into Chapter 11 months ago, saving the taxpayer’s billions and such decisions wouldn’t be political considerations. A bankruptcy judge would be making them and perhaps keeping operations going longer or being made lean rather than being the target of petulant, dangerous, political anger.
Perhaps by now a Ch.11 restructuring would be well along. Painful yes but with a glimmer of hope or a sense of outcome. Not what we have today. Sadly, it only cost the taxpayers north of 17 billion to arrive at the same outcome.
Except this outcome will be nowhere near as impartial.
How can it NOT be political if Obama is involved? A plant is about to close down in a strong supporter’s district, will he spend more to bolster up that one at the expense of one in an enemy district? Will the representative from that area not demand it?
The free market system works. all of the failed 5 year plans of the soviet union prove government managed business doesn’t.
You’d the the American people would understand that by now.
Matt’s right. If GM’s leadership had any guts, they would have entered Chapter 11 6 months ago – without the Obama administration looking over their shoulders.
All contracts would be reviewed and most voided – mortgages and loans, union and executive pay agreements, dealerships, etc…
They would have the possibility of emerging with a streamlined infrastructure and marketable products.
Now they are going to limp along as a zombie company – bleeding government cash and manufacturing politically designed crap.