Whitacre out at GM

Ed Whitacre, the now-former CEO of GM, resigned yesterday–a day before the IPO for GM was supposed to hit the market (it was rumored that the latest date would be today, Friday, but it didn’t happen, and my explanation follows after the link).  But as for Mr. Whitacre, I see a pattern emerging here–libs, with no idea of how the market works or investors make their decisions, tell someone to implement policies that have absolutely zero chance of working.  When the successes they’ve manufactured in their minds don’t materialize, then the individual who was tasked with making their fairytale outcomes come true gets canned:

Model Corruption

Tell you what happened–at least in my opinion.  Obama’s “brain trust” thought, like some of my liberal friends, that the IPO would bail out the taxpayers, thus making them look like brilliant central planners who really have a nose for business.  Forget the fact that the largest IPO in history was $22 billion (Industrial and Commercial Bank of China, 2006) and they were looking for $50-60 billion–a government-run entity is sure to be more valuable to private investors, right?  But the expectations have gradually fallen over the months until the last estimate was that it would be $10-$12 billion.  But I’ll bet good money that even that wasn’t going to fly (hence, Whitaker gets wacked).  The only people who are going to buy any blocks of any size of that stock are the people guaranteed not to get hurt by it–the unions.  The rest has to be carried by Mom and Pop investors who do their own investing through discount brokerages (no sane broker would recommend GM).  Why?  The Administration has demonstrated that real investors put their money in the hands of the WH and their union partners.  The proceeds will be “invested” in the union pensions and benefits, not in making GM a better car company.  Anybody who’s been paying attention knows this.

The question is–will the central-planning leftist ideologues decide that their grand schemes don’t work?  Or do they decide that their grand schemes can’t work in America as it is today and double down on their “change?”  My bet’s the latter.


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