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June 1, 2009
Setting Up a Scapegoat for GM
The NYTs today is gushing over a 31 year old who interrupted law school to "run" General Motors in the bankruptcy announced today. He has no formal economic training and no business training. His dad is a "green" engineer. He is a scapegoat. Obama's high ranking economic advisors haveset this kid up to take the fall of an inevitable failure of a government effort to run an automotive company. They are not going to be front and center on this. They know that it is highly likely that GM will emerge from bankruptcy a mess. It's future will pprobably be a second bankruptcy (similar to many of the struggling airline companies).
Yesterday I took my son to a barber and we tested Buffett's advice: "Never ask a barber whether you need a haircut." We asked the barber: "What to you tell people who ask you whether they need a haircut?" He responded: "I always say yes, of course." Obama has the same problem with his "experts." When you ask and "expert" for advice th modern expert, educated at Harvard or Yale always will tell you they can fix the problem; they never say "I don't know" or " We should stay out." Obama and his experts think they can run a car company, reluctantly, of course, but they have "no choice, but to fix the problem." Where is the humility? Not taught in school by experts; not held by experts.
June 1, 2009 | Permalink
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Comments
A little unfair I think (although I would love to know which advisor planted this story.
The real leader is Rattner, who had to divest himself of Cerebus holdings after he started giving advice on Chrysler.
There are plenty of pseudo-experts to take the rap with the kid.
Posted by: save_the_rustbelt | Jun 1, 2009 2:29:44 PM
What's the problem? Didn't you read Obama's comments? The government is simply going to revive the company, then get out really quick. You'd be much happier if you simply took the President's words at face value.
I'm getting the idea that Obama's handling of GM will be like the early days of Iraq minus the bodies; just another ideologically-motivated disaster--a giant money pit with no plausible exit strategy. Maybe in a year, while Congress is cutting another $20 billion allowance check for the UAW--er, I mean--GM, he can speak in front of a giant "Mission Accomplished" banner.
Posted by: Vince | Jun 1, 2009 4:11:18 PM
