| ThoughtsOnline |
|
Rambling thoughts on who knows what... Because not everything is as the conventional wisdom would have it... BLOGS I SORT OF LIKE... Volokh Conspiracy ProfessorBainbridge MarginalRevolution Patterico Powerline Ace Wizbang JustOneMinute XRLQ Betsy's Page HE WHO USED TO LINK ME EVERY NOW AND THEN InstaPundit Email Steve
|
Monday, June 01, 2009
Re: Obama's plan to 'invest' another $30 billion in GM as a stepping stone to restoring GM and eventually selling off the government's 60% stake to the public...
Obviously, investors aren't now willing to invest $30 billion for 60% of the surviving GM... if they were, wouldn't it make sense to let them do so? They have taken a look at all aspects of GM - the fuel mileage dictates, the still-pricey labor contracts and restrictive work rules, their better funded competition, the ever-increasing level of federal government intrusion into business affairs - and have justifiably concluded that there is a high likelihood that GM will remain unprofitable and in no way will be worth anywhere near $50 billion. So why does Obama think that investors will be willing to do so in the not-too-distant future? What does he thinks he knows that he thinks they don't?
|