Monday, March 30, 2009
GM and Bailouts
As reported here, GM's new CEO Fritz Henderson is putting bankruptcy back on the table. Keith Hennessey, President Bush's National Economic Council director, outlines on his blog that they recommended GM get the loans because they were not "ready" for Chapter 11. That makes some sense. President Obama ousted GMs CEO Wagoner today mainly because Wagoner refused to keep bankruptcy as one of GMs future options. Now that GM and Chrysler have had an opportunity to get their act together, President Obama believes they must make tough choices, which could include bankruptcy. Score one for Mr. Obama today. By keeping it on the table, it forces the unions to make tough concessions...concessions, by the way, that have already been made at Ford. Interesting stuff.