Boycott GM

General Motors has for all practical purposes become “Government Motors”, and like with Amtrak, government ownership will never end. Perhaps more importantly, GM will no longer be competing fairly against other US car companies. One result is that Ford will either be absorbed by GM, taken over by the government, or cease to exist.

Consider that Obama has already decided to change the rules and cheat General Motors bond holders (people who loaned money to GM). Instead of upholding the law that has been in existence for the last one or two hundred years, Obama has decided that the unions will get money legally owed to the bond holders. Apparently Obama doesn’t know that this hurts pension plans that owned GM bonds. Even worse is the effect on all businesses in America in the future. Suppose a company wants to sell bonds to raise money to build a new factory. Apparently Obama doesn’t understand that this company will now have to pay a higher interest rate to entice buyers who will be afraid that the government might cheat them too in the future. Now suppose this company is Ford, which is another car company and another company with unions. Apparently Obama doesn’t know that he just destroyed Ford’s ability to compete.

The government bailout and takeover of GM is, of course, un-American, but there is something we can do about it.

Boycott GM.

I have an allergic reaction to cheaters. I would thus pay $1000 more for a car from Ford than the exact same car from GM. I would keep using my old car as long as possible before I would by from GM.

In addition to boycotting GM, why not also boycott AIG, Fannie Mae, Freddie Mac, Goldman Sachs, JP Morgan, and any other cheaters who received a bailout or who seek special favors from the government - like General Electric.