For those of you that have read some of my past articles, you know that I have had many disagreements with president Obama. This current GM situation that has arisen, could have given Obama one more reason for me to disagree with him. He could have, once again, decided to bailout the automakers with a few hundred billion dollars, but in all honesty, I must say that I agree with him.
Obama did two things right: 1) He said that a “pre-packaged” bankruptcy is the best conclusion for GM. The details of “pre-packaged” are not yet clear. 2) Wagoner was forced out. This situation, and quite frankly, my opinion, might offend many Americans. Many people may lose their jobs, and many more people may lose money in stocks, but we need to remember our values as Americans. Companies take risks, when a company like GM fails, all of America feels it, but we cannot let private companies become “risk-free”. A “risk-free” company is a nationalized company. We will understand more once “pre-packaged” bankruptcy is defined.
Wagoner needed to step down. Obama asked him to come up with a plan-of-attack and Wagoner could not do so. Any CEO that can no longer lead the company should step down. Thanks for your honesty Wagoner.
As of right now, Obama’s intentions are not yet clear. We do know that respect for capitalism is probably not the reason he chose not to bailout GM, but we do know he made a correct decision. I respect Obama for his decision today and hopefully it is for the right intentions tomorrow.
No comments:
Post a Comment