Thursday, April 30, 2009

What If Bush Did It: Chrysler Edition

An unanticipated use of the WIBDI department - Obama's actions are superior to Bush's in this area. Chrysler should have been in bankruptcy months (if not years) ago.

A purist might complain that the Obama administration is still too heavily interventionist in the process, but from this administration I'm going to take what I can get and declare victory. Bush slapped a free money band-aid on the autos... Obama is using bankruptcy law to do fundamental restructuring.

If Bush had let Chrysler go into bankruptcy? Imagine the outrage.

I will complain a little about Obama's castigation of the bond "speculators" who didn't want to budge. (1) That's what bankruptcy is for, they probably (inadvertently) did you a favor by forcing your hand. (2) They were betting that the government would bail them out... wonder how they got that idea? (3) They were excercising their rights as bond holders. (4) These "speculators" paid the original holders and took them out of their positions, doing the original holders and society a favor.

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