Wednesday, April 1, 2009

$14 billion later, GM bankrupt?

Because the experts in Washington know more than we do about economics. Ace of Spades:
Fourteen billion dollars down the drain to achieve what could have been achieved for nothing.
Ed Morrissey:
Politically, though, this won't hurt Obama. The decision to bail out Detroit came from the George "I had to kill free market principles to save the free market" Bush in November. GM and Chrysler both took huge sums of money from the Treasury during Bush's administration. If those funds get lost in the bankruptcy that should have taken place instead of the bailout, then we will have to blame that on Bush, not Obama.

Exactly. There are two reasons why Republicans should never vote for statist economic interventions:

  1. They won't get credit for good intentions; and

Hope you kiddies are studying this valuable lesson. At $14 billion, it's an expensive one.

P.S.: Be sure to check out MELTDOWN, Professor Thomas Wood's new bestseller about the financial crash and why Obamanomics won't work.


  1. Geez! One could have funded 14,000 Culture11s with that!

  2. It might be even worse than losing $14B. We know that there is roughly $1 trillion of GMAC CDS outstanding. If AIG was the issuer then the tax payer is on the hook for the $1T as the U.S. government has already stated they will pay out on the CDS at 100%. Karl Denninger over at the Market Ticker has a write up.,-UNLESS.....html