When it comes to spending money, Congress should have a say-so, but you never know with this guy.<quoted text>But Gm & Chrysler did defacto go into bankruptcy. Just not the proper way.
They put a number of lines up for sale & with no takers just closed them down. The only line that they managed to sell was Saab & it has since closed.
Private money knew better than to get involved in the mess.
Obama did insist that certain officers be 'removed' which he has no lawful power to do, even IF he only delegated the actual negotiating. I believe that the union ended up with quite a few shares too for 'being cooperative'.
I don't remember; did congress have a formal vote on this?
In a small way, I can understand the government bailing out the banks because it was government that caused the problems with the banks. But automobile plants?
I think they should disassemble Fanny and Freddy and let banks make their own rules on who and how they will lend money. Banks would never loan their own money out to unworthy applicants that have low income or bad credit scores. The federal government pressured these banks to make the loans which the banks didn't care about because they were going to sell these bad loans off to the secondary market. Any bank that wants to sell to the secondary market has to abide by Fanny and Freddy rules.