USSA?
I understand the political need to get reelected. However, Hayek, the famous political economist would turn in his grave to watch the USA get back to pre Thatcher Britain. The Govt. will manage car companies, banks, decide the products, decide the pay and so on and so forth. These actions, are even more quickly marking the "top" of the American supremacy.... What has made us great is fostering competition and innovation. The United States of Socialist America is a terrible idea- it has almost never worked.
Bailing out financial institutions, I understand- else the rest of the economy grinds to a halt as financial intermediation is stopped and the risk premium really shoots up. If all the mortgage, credit card and other financial companies fail then innovation is stifled. However, TAKING our money and putting it in a place not known for innovation is quite counterproductive. Interestingly, we are not treating the other car companies (BMW, Toyota etc.) as the "same"- something we punish Japan for.
Managing Detriot's "bankruptcy" such that none of the bond holders would be hurt, in my mind would have been wort considering. Let the equity holders decide who runs the company- stop the CDS market from freezing if you want by protecting the bonds (if we are being consistent with let's protect financial intermediaries....).
Now there will be unusable DEMOCRATIC cars....
Blah....
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