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Making Things Versus Shuffling PaperClearly the Obama Administration is no where near being ready to face the reality of our economic predicament. Today's example is that of the forced departure of GM's CEO Rick Wagoner. What's wrong with that, you ask? Well, I'll get to that in a second. But let's talk fundamentals first. What is it that GM does? The build cars. Reasonably good ones, too. Not perfect, mind you, but they do manufacture what the US public (and many Omanis I might add) want. Big cars that guzzle gas and are cheap. They can do better. We all know that. But, they still make something. Something with real value. Something that lasts for a few years at the minimum. Now, what do the banks and the Wall Street firms make? What do they build? Exactly: nothing! And yet, not a single Wall Street CEO has been asked to step down, even in the midst of actions they took that have brought the American economy and the global one to its knees.
And therein lies the hypocrisy. As Barry notes:
This is one of those examples where our government is being penny-wise and pound foolish. And it serves the public no good. Not one iota. Sean Paul Kelley March 30, 2009 - 8:54am
( categories: Business | Global Financial Crisis )
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