Japan All Over Again

Monday, March 30, 2009

From the WSJ: Government Forces Out Wagoner at GM

The administration's auto team announced the departure of [General Motors Corp. Chief Executive Rick Wagoner] on Sunday. In a summary of its findings, the task force added that it doesn't believe Chrysler is viable as a stand-alone company, and suggested that the best chance for success for both GM and Chrysler "may well require utilizing the bankruptcy code in a quick and surgical way."

Neal here,

Well that was how many billions just wasted? The government needs to get the hell out of the way of the market system and let it work. It only took the government 6 months to figure out what we already knew; GM and Chrysler are insolvent! All the government is doing is dragging things out just like Japan did in the 90's and wasting trillions in the process. When do we get the epiphany about the banks. How long will the phony "stress tests" go on before we hear that bankruptcy would be the way to go. All the government should be doing right now is arresting the scammers at the banks -Mozillo from Countrywide-  and setting up responsible regulations. This would include bringing back many of the laws that were dismantled during the Clinton and Bush years.