PrintJune 1, 2009
Chrysler, GM, and the Law of Unintended Consequences
Entirely predictable, the unintended consequences of nationalization of GM and Chrysler will still come as a surprise to Obama partisans and the media.Some of the acronyms will remain the same, but their meanings will change. GM becomes Government Motors; GMAC is Government Motors Assistance Corporation. Chrysler becomes part Italian, part U.S. government -- an arranged international marriage. Like dinosaurs mating. Played for chumps, the bondholders from both original companies are left with chump change on the dollar. Pieces of the old GM, like Saturn or Hummer, will disperse like orphans of a dismembered family. Some may live on with others; others will die off in some backwater market. The federal government will have its sought-after mechanism to coerce us into small, fuel efficient vehicles. The American Green Fleet. Heralded as a partnership between the American labor movement and an enlightened government energy policy, the consumer of an American Green car will be...(Read Full Article)
