February 14, 2013 | 68 comments
November 21, 2012 | 120 comments
October 1, 2012 | 8 comments
June 29, 2012 | 146 comments
March 28, 2012 | 34 comments
An IPO offering that can only be regarded as a business-killing national disgrace.
(Page 2 of 2)
Numbers like “a million jobs” are thrown out, but unfortunately the bailout/takeover proponents use the same shoddy “saved or created” methodology used to justify the stimulus. No one knows what would have happened if the government would have stayed out. But during the same time, as I wrote in TAS at the time, some pretty big firms — such as the nation’s second largest shopping mall owner General Growth Properties — went through the bankruptcy process and reorganized without any government funding. Even if GM or Chrysler had to liquidate, portions of their businesses would likely have been bought out by rivals such as Ford, Hyundai, and Toyota, and some workers would have been reemployed, albeit with less generous benefits (the workers now have benefits more generous than most blue-collar and some white-collar workers).
In fact, as a whole, the auto rescue may result in net job losses, both because of the likely increase in the cost of capital from bondholder treatment, and because of the rapid shutdown of auto dealers that has cost tens of thousands of jobs. Some dealers would have and should have been closed in a normal bankruptcy, but the special inspector general for TARP (SIGTARP) found in a report that the extraordinarily “rapid pace” of dealer closings resulted in “tens of thousands of dealership jobs [that] were immediately put in jeopardy.”
The SIGTARP also found that “job losses at terminated dealerships were apparently not a substantial factor in the Auto Team’s consideration of the dealership termination issue.” In other words, the sales forces didn’t have the clout with the Obama administration that the UAW has.
So in this case, what was good for GM, Chrysler, and the UAW, put the screws to almost everyone else.
(This article is not intended to offer investment advice on the GMO IPO being offered on the backs of taxpayers, car dealership workers, and pension funds.)
CEI Research Associate Andrew Kwiatkowski contributed to this article.
A man of faith in a godless age is hitting Americans where it hurts.
Mr. and Mrs. American Spectator Reader, let P.J. O’Rourke talk sense to your kids.
In Britain, defending your property can get you life.
The debacle of this president’s administration is both a cause and a symptom of the decline of American values. Unless Congress impeaches him, that decline will go on unchecked. An eminent jurist surveys the damage and assesses the chances for the recovery of our culture.
It won’t take long for conservatives to scratch this presidential wannabe off their 2008 scorecard.
The American Christmas, like the songs that celebrate it, makes room for everybody under the rainbow. Is that why so many people seem to be hostile to it?
Was the President done in by the economy, or by the politics of the economy?