I started writing a post on the purpose and goals of the GM bailout. While researching, I realized Robert Reich (former Democratic Secretary of Labor) had covered most of what I wanted to say in this
May 31, 2009 Financial Times article.
This isn't about saving jobs, creating a better company, or a better industry; it's all about postponing the inevitable while appeasing the union and effected local interests. And the money we are spending will eventually be re-spent on unemployment benefits, retraining, etc. so this is money poorly spent.
I'll add one point that wasn't explicitly made in the article. These loans or bridge-loans are not loans. There are no interest rates attached, no repayment timing or structure, and no end date to repayment. This doesn't prove, but suggests as Prime Minister Harper let slip, that
this money is not expected to be repaid.
From Wikipedia:
Robert Bernard Reich is an American politician, academic, writer, and political commentator. He served as the twenty-second United States Secretary of Labor under President Bill Clinton, from 1993 to 1997. In 2008, Time Magazine named him one of the Ten Most Successful Cabinet Members of the century, and The Wall Street Journal placed him among America's Top Ten Business Thinkers. On November 7, 2008, he was selected by President-elect Barack Obama to be a member of the President-elect's economic transition advisory board.
From Wikipedia: The Pontiac Aztek is a mid-size crossover SUV that was produced by the General Motors marque Pontiac from the 2001 model year to the 2005 model year. The Aztek was mostly noteworthy for its exterior styling, for which it has been voted the ugliest car in the world by a British newspaper.
