GM has just become Poland under the USSR
…or any of the other Eastern bloc countries that were taken over by the Soviet army after WWII.
How is what the Obama administration doing any different than nationalization – and by analogy to the title, disguising a take over of a (corporate) government by installing a puppet regime?
If the news reports are accurate, the government has controlling funding for GM without which the company would be unable to continue operations, Obama has just demanded and obtained the CEO’s resignation, the majority of the GM board is also expected to resign, Obama will then dictate the composition of the new Board that will run the company – (puppet board) – which will then “negotiate” with an adversarial auto union – which is undergoing no government take-over – for a new contract which will be subsidized by the government (i.e. U.S. taxpayers) to keep the company operating under the control of the U.S. government, who will call the tune and make all the decisions.
This looks to be a textbook definition of nationalization in substance – and is exactly what the USSR Communists did to the countries of Eastern Europe after WWII. And who knows if Chrysler will also be taken over in like fashion. Any effort to call it anything but nationalization/puppet corporate governance is Orwellian at best and at worse a malicious lie.
Years ago, the saying was “What’s good for General Motors is good for the USA”. Looks like that old song has taken a sinister (in all senses of that word) turn.
Or rather, the new verse is “What’s good for the U.S. President, is good for General Motors”.
On further reflection, is Obama instead emulating the Russian mob model, built on the foundation of our beloved Chicago mafia, of muscling in and taking-over of business and putting his guys in charge?
Not that I’m defending the GM board as worthy of staying in charge. But if the government is going to essentially take management control rather than going the bankruptcy route, let’s not play charades with puppet regimes (or worse) and the other cover-up lies to pretend that GM is still an independent entity.