Here comes the Trabant

180px-trabant_601_mulhouse_fra_0011News that Obama has fired GM’s Rick Wagoner doesn’t surprise me and, I suppose you can’t retroactively fire his predecessors of the past 40 years who guided GM to build cars that were poorly made and unwanted. Just as it seems within the power of the government to rescind bonus contracts for AIG executives now that taxpayers own 80% of the company, dumping the chief executive of a company begging for billions of dollars of taxpayer money is probably overdue and fitting.

What worries me though is the fact that our largest companies are, in exchange for these billions, ceding control to the government. Today the president of the United States fires Wagoner. Tomorrow, won’t Nancy Pelosi and Harry Reid, goaded by their Green constituency, demand new products from that same company? If we own these companies or they are in our debt, shouldn’t we have a say in what they produce? What they pay their workers? The benefits they must supply? It’s not hard for me to envision the cessation of fuel-guzzling, wasteful pickups by GM and the introduction of new products, designed and approved by Ralph Nader and Green Peace, that will have 2 cylinder, 15 horsepower electric motors and cost $55,000 apiece. No one will want them, but they’ll be all that’s available, like East Germany’s  beloved Trabant.  

Socialism specializes in producing waste and inefficiency – we’re watching it come here and no one seems to care. Better, I think, to let GM fail and disappear than set the model for a new “partnership” between government and what’s left of private enterprise.


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4 responses to “Here comes the Trabant

  1. Al Dente

    It seems odd that a man who never ran a lemonade stand would lecture, and then fire the CEO of GM.

    GM is in trouble because of unions, which Obama owes his soul (if he has one) to.

    This is the biggest joke (so far) of the Obamanation Abomination.

  2. This is what happens when you lose your position as #1. It doesn’t take long for people to start envisioning a world without you. GM started on the road to irrelevant years ago by focusing internally rather than on the market – missing all major shifts and becoming also-ran. Obama’s team is telling everyone (auto and banking) that if you can’t prove you know where the market is heading and demonstrate you can get back in front, then there’s little reason to support you. Read more

  3. nobody

    Pelosi is no more green than you are, she’s a crook through and through. Her husband is in “private investments” and real estate and they refuse to disclose his holdings. Her constituents are idiots.

    Pelosi is a bigger crook than Dodd, Maxine Waters might be even more crooked. She’s a former teacher turned multi-millionaire elected and reelected from a poor district. Her rant against GS last week might have garnered some populist hurrahs but they don’t know how that B works. I watched that hearing and while watching the faboo Max rant against GS, all I heard was “where’s my taste?” Google loon Maxie and OneUnited Bank to see where my suspicions originate, then google Maxie and Bernanke in the news section of google, yup, Ms. Maxine is in there fighting to make sure minority and women owned firms get their piece of the PPIP pie.

    That should be all anyone needs to know about PPIP, it’s a money-maker for investors and a money-loser for taxpayers.

    God help us all,
    A pissed off California taxpayer.

    (full disclosure: there really are people like me in California who aren’t behind in their mortgage payments, who didn’t take out HELOC’s, and don’t have any credit card debt. We also hate our corrupt representatives and some of us are/were even Dems. Hard to believe, I know, but it’s true.)

    Thanks CF for the blog, and thanks false “Walt” for the entertaining comments. Even in the midst of all this crap, it’s good to be able to crack a smile or laugh right out loud at some of the things you guys say (I mean that in a good way.)

    What a bizarre time to be alive. Roughly 1/3 of American homes are completely paid off, 90+% of mortgagees are still making payments on their mortgages, and the entire world’s economy is being brought down by the +/- 10% of fraudsters and deadbeats because of CDS, CMO, CDO, CLO, ad naseum exposure. Unbelievable.*

    * I am assuming that the global ratio is somewhat similar, or worse, given the troubles in Europe, Asia, and Australasia.

  4. kate

    here’s an old trabant joke: a man sees 2 guys carrying a trabant on their shoulders and asks: “what’s the matter? the car broke down?” and they answer: “no, we’re just in a hurry.”