GM’s Bailout Is a Financial Disaster

Posted on November 19, 2010

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Only the government would consider it a success to buy stock at $43.84 a share and sell it at $33. — But President Obama and those who supported his bailout of General Motors and Chrysler are claiming just that today.

First, the alternative to the government bailout wasn’t to “give up” as Obama claimed on Thursday at his press conference. Bankruptcy didn’t mean that all jobs were going to be lost. It didn’t mean that all the factories producing cars would be closed.

Yet, the president made that claim in his announcement again today and he continually misstates what would have happened in a normal bankruptcy. Courts don’t just close down bankrupt companies. In fact, that rarely occurs. Any part of a company that can continue operating profitably continues to do so.

via GM’s Bailout Is a Financial Disaster.

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