Tuesday, June 2, 2009

Busy Not Running GM

What we are not doing -- what I have no interest in doing -- is running GM.

So says the captain of industry pictured here. In the quoted Wall Street Journal article, Obama reassures the mayor of Detroit, that GM headquarters won't be moving to nearby Warren, MI. Because it would be bad for GM's profitability? Hardly, because this is all about what's good for Detroit, not GM, or good for the UAW, not GM, or any body else politically connected, but not GM.

A small, but telling first example of the politicization of this industry that Dean and KT have already been warning us about.

Meanwhile, all may not be roses for the administration's disregard for the rule of law in bankruptcy court. A group of Indiana pension funds have won a hearing with the 2nd circuit court of appeals to prevent the sale of Chrysler assets to Fiat. As Dean pointed out earlier, and is conveniently left out of the WaPo article, these funds represent teachers and police officers, whose unions probably contributed to Obama's election.

I am adding GM to my list of products I don't buy on principle, right up there with French beer. Although I have purchased Dodge minivans in the past, no more, but that is also a practical decision over their pathetic decline in quality.

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