In an amazing turnaround, the hot-and-cold administration of Barack Obama is embracing a new concept: Bad corporate giants should be allowed to fail.
But at this point, failure is only an option, not an absolute. While the White House appears to ready to accept the fact that the government cannot save everything, it is giving General Motors yet another chance to save itself and quality for mroe federal tax handouts.
This, of course, sent Wall Street into a free fall. Where is Uncle Sam when you need him? Corporate greed cannot exist if government isn’t there to save the day. What’s going on.
Good question. Is Obama really ready to accept the obvious or is this anothere ploy?
Time will tell and time is still on the side of those for whom failure is still a path to success.
Writes Roger Simon of The Politico:
In a startling departure, the Obama administration has decided that the price of failure in America should be failure.
While this principle has always applied to ordinary Americans, it did not apply to corporate America, where the price of failure has been bonuses and bailouts. Now, President Barack Obama has introduced something else: the boot.
Obama fired Rick Wagoner, the CEO of General Motors, on Friday simply because Wagoner was doing a terrible job and had run GM into the ground.
Wall Street was aghast.
On Monday, in a calm and forceful statement, Obama made clear his reasons. “Our auto industry,” he said, “is not moving fast enough to succeed.” In exchange for the billions in taxpayer funds some carmakers have already received and the billions more they want, President Obama is demanding “a better business plan.”
The stock market plunged. Over the past couple of weeks, after the administration announced the injection of about $2 trillion in what was essentially free money into Wall Street, the market soared.
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