Regardless of the GM bailout headlines proclaiming the staggering numbers, the real story of the government’s bailout of GM, utilizing TARP funds, is way more than simply the billions of dollars concerned. It is more importantly a narrative of governmental hubris that started with President Bush and the Republican Congress panicking and pandering to public fears, adopted by President Obama and his administration – the Treasury Department in particular, skirting, or ignoring the rule of law to pursue a plan that was formulated based mostly on political considerations fairly than established contract law and sound financial procedures.
The most persuasive argument from supporters of the bailout is that an unassisted bankruptcy and reorganization wouldn’t have worked because financing from Wall Street or other non-public, non-governmental sources was not accessible. If GM and Chrysler survive, all or a lot of the taxpayers’ money can be recovered. Maybe Romney will assist by … Read more