What happens when a community organizer decides to save an American automobile company? It becomes an Italian automobile company that is now bailing out the UAW, sending money back to the homeland and has created more jobs overseas than here in the U.S. The mighty #Obama business acumen strikes again. In “saving” the American auto industry, Obama gave an American company away. And he gave it away at the expense of pension funds and other secured creditors, which were given a much smaller stake in the new company than they would have been given under traditional bankruptcy proceedings. American manufacturing workers also lost out on the deal; many are now hostages to the woes of Fiat and the Italian economy. Fiat and Chrysler CEO Sergio Marchionne has to be given some credit for not become another GM (Government Motors) because he did what a good CEO does, built more Dodge trucks and Jeeps that people want to buy rather than something like the Chevy Volt, which doesnt sell all that well. An Obama lacky would have done the opposite. Still, all the profits now being made at Chrysler will be going to shore up Fiats European woes. Remember when Mitt Romney said that Fiat would make more Jeeps in China rather than have production here? They are... What happened to all that stock the U.S. Treasury held? Treasury sold those shares back to Chrysler at a loss in 2011. Just like they did with the U.S. held GM stock. Both Romney and Obama backed some form of government guarantees for American auto companies. Government aid to a specific business is something free market advocates can never support. But Chrysler’s politicized bankruptcy took away a more fundamental guarantee — the rule of law — and many American workers will suffer as a result. More here: openmarket.org/2014/01/01/the-great-italian-auto-bailout-courtesy-of-u-s-taxpayers/ and here: money.cnn/2014/01/01/news/companies/fiat-chrysler/
Posted on: Thu, 02 Jan 2014 16:03:27 +0000
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