We got a chicken
in every pot from FDR.
We’ll get a moped with 110 year payback
in every garage from Obama.
General Motors CEO Rick Wagoner has been told to “resign” by Obama administration. Mr. Wagoner has served in that position for about eight years. The GM Board of Directors appointed him; GM shareholders like me accepted him.
NBC reports that a senior Obama administration official told the network that Wagoner was “asked to step down by the White House.” The Obama administration will announce the automaker’s request for additional government rescue loans, two people familiar with the matter said.
One of my correspondents has shouted that, “This…. is … an…. OUTRAGE!!!”
Apparently Mr. Wagoner is out because he failed to gain the concessions from the UAW that government officials had set as targets to justify further loans. Obviously, the administration has forgotten the UAW strikes that crippled GM just a year ago and the ongoing rancor the union projects.
Mr. Wagoner has a lot of faults — mostly that he is a bean counter, not a car guy — but this drive by the administration to take over GM is a backdoor attempt at eminent domain. They think by sneaking in the backdoor, they can nationalize the company without buying any land.
The legal doctrine of eminent domain allows a government to expropriate property within the law. Without the doctrine, taking property — whether your house or your farm or your business — is either a criminal or a revolutionary act.
Here’s my bottom line; if the Obamanation wants my GM stock, they can indeed buy it. Tanking the business then taking it over from behind is not just plain theft; it is cowardly theft.
If you own a small bank, or a farm, or a restaurant on Main Street, you could very well be next.
Oh, yeah. And rumor has it that the government-run GM new product line-up includes a license to build the Tata.