Regarding the viability of GM as an economic institution, everyone has long known the truth: GM can't be made economically viable unless someone is willing to kick the UAW in the nuts.

For a Democratic administration that's a distasteful thing to do, but GM can't be saved any other way. So it looks like Obama has decided to let a judge do it.

I think that bankruptcy was always the right way to go. And the reason is that a bankruptcy judge has the legal power, and the political disentanglement, to do what needs to be done to the UAW.

But you can bet on this: when the judge finally does it, Obama will say, "No, that's not what I thought should happen" but he won't do anything to override the judge. The name of the game here is plausible deniability.

Posted by: Steven Den Beste in Weird World at 01:26 PM | No Comments | Add Comment
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