Obama And Hard Choices

By Jeff Carter:

Last night, the Democratic convention kicked off. They talked a lot about the choices that Obama made. I thought about those choices. Obama always takes the easy way out, makes the easy choice.First ChoiceEasy choice: Stimulus to put us far deeper in debt (Salt Water Economics) vs Hard choice: Creating economic incentives for private expansion (Freshwater Economics)
Second ChoiceEasy choice, bail out $GM vs Hard choice, allow bankruptcy process to save $GMThe President made the easy choice. Obama bailed out his cronies in the unions, crushed down the debt and shareholders of GM. A managed bankruptcy would have allowed GM to stay in business, along with all the suppliers that depend on GM-but it would have changed the pensions and salaries of all GM employees-including the white collar employees.
You lost money if you bought the GM IPO. The company is losing money, has a massive pension liability and will go bankrupt again.

Read the whole thing.