Monday, July 13, 2009


Thought of the Day

In the process of converting General Motors into a federal jobs program, the Obama administration ran roughshod over bankruptcy law and contracts, introduced a new element of political uncertainty into the business-lending market, wiped out shareholders, weaseled out of debts at 29 cents on the dollar, and created a new corporation to which it will transfer all of GM’s best assets, leaving the problematic ones behind. Besides setting a precedent of lawless political adventuring in the economy, it’s not clear that any of this is going to save GM — much less save it at a price that is worth paying. That’s because GM will have the same lazy management and the same rotten unions making the same clunky cars at the same old factories for the same buying public that has made clear it doesn’t want them. That is not a recipe for success, even if one mixes in the penetrating financial insights of Barack Obama.

Kevin Williamson


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