Go ahead. Make my car. (new link)
If the U.S. president told the bank holding your mortgage to cancel your debt and hand you the house free, it wouldn’t make you more productive or efficient. It just screwed someone you owed money to. And clearer than ever is that GM could have survived the Lehman episode with a simple bridge loan. America’s biggest auto maker could have returned to the slog without dishonoring billions of dollars in obligations to bondholders and other creditors.
But the most egregious aspect of the Obama bailout is its annexation of the auto sector to the administration’s green energy schemes. It’s no exaggeration to say the auto industry is being used to fulfill a throwaway line in an Obama speech calling for one million electric vehicles on the road by 2015.
