The White House asked Wagoner to leave just as the president announced his “strategy for U.S. auto industry”. Since when did the government start making strategy for any industry? We should have followed Sweden’s action. The Enterprise Minister (why don’t we have one of those) said “the Swedish state is not prepared to own car factories.”
GM has already received $13.4 billion from the government and is putting their hands out for $16.6 billion more. While the administration is giving them 60 days to make things better, they are delaying the ineveitable. Both companies should have filed bankruptcy back in December. Bankruptcy codes were written into the Constitution, Article 1, Section 8 and states the following:
Authorizes Congress to enact "uniform Laws on the subject of Bankruptcies."
Under this grant of authority, Congress enacted the "Bankruptcy Code" in 1978.
The Bankruptcy Code, which is codified as title 11 of the United States Code,
has been amended several times since its enactment. It is the uniform federal
law that governs all bankruptcy cases.
The fundamental goal is to give debtors a financial fresh start from “burdensome debts”. In 1934, the Supreme Court made this point:
It gives to the honest but unfortunate debtor…a new opportunity in life and a
clear field for future effort, unhampered by the pressure and discouragement of
I guess as long as the liberals are in control, bankruptcy will not be an option. They’ll just continue to take over industry after industry and weed out those they don’t want in control. More victims to come, but I wonder if the President of the UAW will be on the victim’s list? Hmm, probably not….