Monday, November 17, 2008
Lehman II, The Redux (Only much, much bigger.)
Senate Republicans oppose help to the automakers and the Bush Administration has decided not to ask for the remaining $350 billion of the bailout money. This means it is almost a certainty that GM and the other American automakers will fail.
With one out of ten jobs in the American economy tied to the auto industry, the result will be catastrophic. It will make Lehman's failure look like a walk in the park.
Paulson's actions throughout this crisis have been beyond incomprehensible: Letting Lehman fail, his ill-conceived bailout plan then the flip-flop. His staunch resistance to helping the auto industry despite its huge economic influence on the economy. His ignorant and lame "confessions" to the American public that the government is powerless on its own to help. And let's not forget his threats to China on the question of their currency, etc.
A total disaster.