Monday, June 15, 2009

Government Motors II

Barney Frank sees nothing wrong with a congressman using his power to save a GM autoparts provider in his district, especially if the congressman is HIM.

We should all be clear on this: When President Obama says that the new GM will be run by GM and not politicians he is either lying to us or kidding himself. When it can be shown that a powerful congressman can order a government-owned and dependent business to do something, more congressman will try to do so and succeed.

Suddenly, you don't have an independent management team making business decisions based on what is fiscally sound and profitable but based on political influence and power. How good is the federal government at running enterprises at a profit? Not very.

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