Until recently, there were two things in life we could count on: We pay taxes, then we die.
A few months ago we could have added to that list that at least one of the automakers would file for bankruptcy. Alas, Chrysler is expected to file for Chapter 11 bankruptcy protection — even if it can strike a deal with its lenders. The Obama administration seems pleased with itself that such a monumental move by one of the automakers would be done in an orderly fashion. Great, but don’t wipe your brow and sigh with relief quite yet.
It was only a few months ago that the Big Three were in the crosshairs of Congress and the public ire. They were shamed for mismanaging their businesses and even flying in their corporate jets, yet they still received substantial bailout funds. In some cases, they came back to the well a second time. Many critics argued that we were throwing good money after bad. Chalk up a big one here for the critics.
This announcement by Chrysler paints a very ominous picture of the ‘success’ of the administration’s efforts to deal with the financial crisis. Chrysler’s news begs the question, “How effective are bailout funds being used by other recipients?”
Again, we don’t have to look far — to the banks — to find unsettling evidence that the administration has botched this rescue big time. The banks were given money to start lending to businesses and consumers alike, but they have been sitting on those funds, keeping the credit markets largely frozen. And even more startlingly, some of these same banks are boasting of having made a “profit” in the most recent quarter.
It was a matter of time before Obama’s ball of yarn began to unravel. Imagine the mess we will have on our hands if the number of new, massive initiatives he proposes every day become equally mismanaged. Scary, really scary.
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