The Washington Post has an excellent editorial today on what lies ahead for GM if they are forced to follow Chrysler’s lead into bankruptcy. It doesn’t bode well for them, or rather, their private investors. Last year, I bought a GM car because I wanted to help US Automakers out. If GM follows Chrysler’s lead in running roughshod over the rights of private investors to prop up the politically favored union, then you better believe that the only car I will ever purchase from a US automaker in the future will be a Ford, that so far, has steered clear of this kind of government involvement.
Best part of the editorial is the summation:
But the spectacle of creditors being stripped of their legal rights in favor of a labor union with which the president is politically aligned does little to attract private capital at a time when the government and many companies need these investors the most. Investors’ fears will only be compounded if the administration follows a similar blueprint with GM.
I don’t know why the Obama Administration has declared war on private investors in America, considering the fact that a majority of Americans are private investors of some sort, be it through direct investment in stocks or participation in retirement plans and funds. Perhaps we are returning to the days when the only sound investment of funds is in a well-appointed mattress you sleep on at night.