Outrage

Last week I had a medical procedure done that required such detailed preparation and fasting that it drained the very life out of me and I couldn't write on Thursday. I came out of my stupor on Saturday, since I had to be sedated for the tests, to hear on Sunday that President Obama had finally done it; he was sticking it to the auto companies.

In finally taking bold action against the auto companies to come up with a sustainable plan for survival; the new administration has unleashed an avalanche of collateral criticism. This called for the ouster of Rick Wagoner at GM and a 60 day deadline for the company's major overhaul; it is rumored that President Obama prefers a structured bankruptcy for GM. Chrysler was given the directive to make a plan for a joint venture with Fiat in 30 days or else; the White House believes that Chrysler is essentially finished. I am not sure why Fiat is the chosen suitor. Even the market was spooked by this logic and fear in equities ensued again.

Nevertheless, it is finally nice to see the auto companies forced to face facts and deal with their fate. Business-as-Usual is truly over for them. They will not receive any more billions unless they comply. Unfortunately, the fallout from this decision-making process seems to underscore Obama's apparent elitism. Why force the auto companies to the comply with such draconian measures when the same was not required of the financial firms?

The auto companies received a mere fraction of what the financial firms have received to date. $30,000,000,000 for auto companies, nearly $1,000,000,000,000 for the financials. It doesn't even seem fair. It was likened to the President seemingly more "in bed" with "those who shower before they go to work," the white collar folk rather than "those who shower when they come home from work," the blue collar folk. Well, the whole stimulus situation is fraught with outrage. All the money and how it is delegated will continue to lead to outrage and I am sure there is more to come.