Emphasis on ‘may:’ the Washington Free Beacon article is not actually claiming that NY judge Robert Gerber will reverse his approval of the sale; merely that Judge Gerber may do so. Basically, what happened was that – as part of the original bailout/bankruptcy agreement – GM dumped its existing debt and liabilities into a garbage company (‘Old GM’) while creating a new, liability-free company going forward (‘new GM’). If any of this sounds familiar, it may be because it was precisely this situation that allowed New GM to stop paying for mercury reclamation from old cars. The liability for that was handed off to Old GM, which spent two years in lawsuits with various states over this before settling – a settlement that had no effect on New GM whatsoever. Which is why the company set up the split in the first place, of course.
I would have let you collapse, GM. So there’s no need to thank me for your government seizure. My no doubt naive belief in basic capitalism precludes me from fully appreciating said thanks; or, indeed, appreciating them at all. How much of MY tax money went into making this self-congratulatory paean to Italian-style fascism, by the way?
The short version? Having the government do your restructuring for you isn’t necessarily the brightest thing in the world. Particularly when there’s a variety of conflicting objectives. At least, if what you’re trying to do is actually create a better version of your company; if your goal is to use government fiat to streamline the operations of your newly government-owned automobile manufacturer it apparently works out just fine.
(H/T: Instapundit) I am honestly surprised to find that there are people surprised by this.
Among those clamoring for attention and payouts from Motors Liquidation Co., the company that assumed General Motors’ unwanted assets after its Chapter 11 filing, are the environmental and economic redevelopment departments of state governments. According to reports, when GM exited bankruptcy, its polluted factory and land sites were consumed by the Motor Liquidation, allowing the automaker to avoid the responsibility of cleaning up its mess, and state leaders fear there won’t be any money to clean the locations.
After all, this was the original point of the exercise. GM was an unsustainable, debt-ridden mess; the government takeover and bankruptcy was designed to let it cut out the most diseased portions of its operations and reorganize as something more… ‘untainted,’ as it were. Or possibly even just ‘less tainted.’ That this ends up with individual state governments left holding the bag on the cleanup* is either an unintended consequence, or just a previously-obscure detail, of the bailout/bankruptcy; it all depends on whether you see the administration as a collection of dangerous idiots, or as a collection of dangerous idiots. A federal bailout of the state governments’ obligations to clean up a private industry’s ecological mess would certainly be a useful weapon in the federal government’s ongoing quest for ever-more power and oversight.
Those who want to give people like Barney a say in the running of General Motors (and Chrysler for that matter), that is those who favor Obama’s Auto Plan, can show that they really believe this is the right way to manufacture automobiles by put their money where their mouths are. When it comes time for them to buy a new car, they should buy a GM (or Chrysler) model. Heck, why wait? Show your confidence in this plan by buying one now.
…but he doesn’t take it nearly far enough. We’ve already established that this administration considers falling in with its policy positions to be ‘patriotic‘: and clearly, supporting the GM/Chrysler takeover is falling in with its policy positions. Considering that – as usual – the Political Class is wildly divergent from mainstream America when it comes to this issue, it is clearly their patriotic duty to make certain that the GM/Chysler bailout succeeds. That means selling that hybrid made by a foreign auto company and buying an American car*. And since it’s a crisis, well, they need to do that right now. Everything else has to be, so this should be, too.
If they were really loyal, they’d do it.
PS: Me? When we had to replace the car a couple months ago we went with a Chrysler PT Cruiser. Which I guess makes me a better American than all those people out there selfishly and bitterly clinging to their hybrids and foreign sedans.
Secondo il Sig. Obama, la crisi economica necessita che gli impiegati della GM dovranno subirsi a “sacrifizi.” Il Duce degli Stati Uniti ha promesso un avvenire piu’ favorevole per i lavoratori, e giustizia sociale per tutti.”