Word on the street is that the Federal Government will now own General Motors.
General Motors Corp’s (GM.N) plan for a bankruptcy filing involves a quick sale of the company’s healthy assets to a new company initially owned by the U.S. government, a source familiar with the situation said on Tuesday.
The source, who would not be named because he was not cleared to speak with the media, did not specify a purchase price. The new company is expected to honor the claims of secured lenders, possibly in full, according to the source.
Mussolini would be proud.
Rich Galen says:
On the very day that Barack Obama announced new fuel efficiency and emissions limits for American cars, Reuters reported that when General Motors goes bankrupt it would be selling its best asset to … Barack Obama.
Fair is fair.
If Obama owns GM he can tell them what kinds of cars to build, at what prices they should be sold, how many seats the UAW should have on their board of directors, and just about anything else he thinks of while eating his morning bran flakes.