The pundits all expect that General Motors will file for bankruptcy protection on Monday.
We (used to) assume that people act to preserve their economic interests. Government acts to preserve the governors.
Given the horse puckey that has already gone on in the Wall Street-Pennsylvania Avenue continuum, I think I have it figured out why Barack Obama wants to bankrupt me:
- 1. The Democrats need to generate demand for universal health care. Imagine that.
- 2. Big bond holders bought credit swaps, the financial innovations that insure debt. Credit swaps pay off only in a formal default. Imagine that.
- 3. Congress needs to shore up Social Security; all the calls to strip that pot of gold from their hands scared them silly. Imagine that.
- 4. The Administration needs to be able to say, “See, this is what happens when you sell gas guzzlers; you go bankrupt.” They are already saying that about the Dodge Hemi. Imagine that.
1. One might think demand for universal health care would be, well, universal. Oddly it isn’t. That said, if half the country suddenly loses its benefits when the bankruptcy domino train rolls through, Democrats hope that changes. A GM bankruptcy almost guarantees that all those workers jump on the Medicare bandwagon.
2. Credit swaps pay off only in a formal default. Look at which Wall Street player whisper in President Obama’s ear to see how financial policy is formulated. A GM bankruptcy could guarantee the credit default.
3. Congress is not afraid that the Social Security will be bankrupt by 2050. Congress is afraid that the Social Security will become irrelevant within their elected terms. Congress absolutely cannot give up that “revenue” stream. A GM bankruptcy guarantees the Social Security revenue stream.
A GM bankruptcy means autoworkers now have 201Ks because the stock in their (former) 401Ks tanked. If GM shares are not wiped out and the company recovers, the autoworkers’ 401K’s will recover eventually. A GM bankruptcy means autoworkers and everyone else with GM stock in a retirement account is more than ever dependent on Social Security. I hope the UAW has finally discovered that a boughten politician doesn’t stay bought. And I hope that you, gentle reader, understand that bankrupting GM decimates my own personal retirement account.
4. Finally, the Administration needs to eliminate the popular gas guzzlers to push forward their Consumer’s Union vision of the perfect car: the 1985 Yugo. After all, it is not right to sell ten million popular cars and trucks. It is only right (should that be left?) to this Administration to sell about half a million Yugos. Or Fiats. A GM bankruptcy guarantees there won’t be anything else sold.
“Those cars are ugly,” Rufus said about the looming Chrysler-Fiat deal. “Americans may not remember all the problem cars Fiat made the last time they were sold here, but Americans don’t buy ugly.”
I dunno. The Democrats sold us first Al Gore and now Barack Obama so perhaps they can sell us Flea Flops, too. But I’ll betcha not one Congress Critter buys one. According to the Intert00b, Far Green darling, multi-millionaire Mr. Gore owns a giant 10 mpg Ford Expedition.