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Obama fires GM CEO

Multiple news agencies are reporting that General Motors CEO Rick Wagoner is resigning, after being asked by the White House, the day before another announcement about about billions of dollars in loans to GM and Chrysler.

This is a tremendous move towards restoring GM to profitability. A couple of days after the University of Kentucky's basketball was fired after 2 seasons, it's interesting to observe another high profile "firing".

Some people might argue that this appears to give too much direct power, or endless influence at the very least, to President Obama. I would argue that Obama is responsible to taxpayers, and if taxpayer dollars are almost solely responsible for sustaining a multibillion dollar corporation, then the leader of our country should have the power to "fire" anyone not helping the company.

What are your thoughts?

Best regards,
Jay

Jay Allen
MovieVoice
jay@movievoice.net

BlatantPolitics.com

Posted by Jay Allen - MovieVoice on 03/29/2009 08:19 PM

Comments (21)

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21 Comments on Obama fires GM CEO

MAR

Jay, my take on all this mess is we are inching if not moving full speed ahead into Socialism. The too big to fail mentality I have ALWAYS thought was a bunch of crock IMHO.

Jay - It doesn't matter who the CEO is - GM will not survive as long as they have to pay health insurance for 750,000 former employees and their families. As mentioned in Kevin's post - maybe the union should step aside as well.

Yea, I think that is how it works in communist China. The government hires and fires becaus ethe own everything including the people. I met a guy at a seminar one time from Russia and he was missing three fingers. When we all went to lunch I was sitting across from him and struck up a conversation. I ask what kind of accident he had been in and he said he hadn't been,

He explained that in 1926 when he 14 living in Russia it was the working age for boys. He was sick for 4 days with the flu but was told that he had to go to work in the mill. When he didn't show up they came and got him, for punishment and as a reminder to all the others they cut off his fingers.

Maybe for all the unemployed and welfare folks that may be a good alternative.

It is about time the government, gets some kind of control on the monies it has been and will be gifting to these dinosaurs. Out with the old in with the new.

Jay,

If politicians would demonstrate that they were good at what they are elected to do, govern or legislate effectively, maybe this "firing" could be tolerated. Really it's a failure of the GM board to take action if the CEO is not working out.

Maybe the bailouts require some additional involvement of the government, but I don't think any long-term good will come from some governmental body trying telling automakers how to negotiate union rules, wages, or what cars are to be made to satisfy the car buying public.

What's next? Government demands that Starbucks only sell decaf, or Burger King reduce the size of the Whopper? A bit too much meddling for me.

Jay, on second thought, I thought they only did this in Venezuela...

My thought is the government has its (small) place and its NOT running U.S. corporations.

Gary, I agree with you on the idea that any business is "too big to fail". GM and Chrysler should have never asked for or received taxpayer money.

Susan, I agree with you about the union.

However, it seems that many corporations the size of GM have a significant problem with paying their laborers and high ranking executives on the same relative scale... most people can clean a toilet - therefore, it's a low paying job. Fewer people possess the expertise to create the programs that design their vehicles - therefore, it's a better paying job. Even fewer people are capable of being a CEO - therefore, it's one of the best paying jobs. But the argument that companies like GM and AIG must pay their top employees $5+ million per year because these people will not work for less is ridiculous. The point is that the increasing disproportionate pay between the haves and have-nots must reverse its course.

Evening Jay, Still not sure if I support the bailouts but I'm inclined to support the car guys more than the Wall St types. At least the car guys actually make something ! Obama is not afraid to make bold changes, for that we need to let him have some time .

It is pretty scary that we have people that know nothing at all about business telling businesses how to run businesses. It is very scary. Our bankruptcy system is superb and we have to fight government, both republican and democrat from getting so totally out of control that we become a socialistic run government. I appreciate Obama's boldness, but his job is to run government, not capitalism.

Socialism, Socialism, Socialism!!! Say it one more time....c'mon everybody, yell it out "Socialism!".

I think that every time I read another comment about Socialism I'm going to give a loud cheer. And one day I'm going to write to all the culprits and ask what they think Socialism means. $100 says most won't even know.

Back to AR:

From my viewpoint, I don't see Obama telling GM how to run as much as I see him telling them how it's NOT going to run. I don't like gov't interference in business. At the same time, I like even less the notion of gov't providing funds to failing entities and not taking the time to look into what's going on. I see a lot of blindness in writing here.....so many allow their dislike for Obama to cloud judgement; it's actually a shame. When thinking before commenting (we all do that, right?) we should put ourselves in the White House and think of what we'd do. Forget about Obama, you're now the Prez. And don't simply rely on what a media personality or talking head says but what we'd do in that position. If I came to you and said I'm in trouble, I need money, would you give it to me? And if so, would you require anything? If so, what?

MAR

The Democrat-led Legislature was wrong to "bail out" GM.

The Republicans in the Legislature were wrong for going along with the Democrat majority.

Republican Bush was wrong to sign the bailout.

The GM Board is AWOL.

And Obama is way out of line dictating to GM who should or should not be working there any more. So far, he's doing a horrible job as Chief Executive of the country... spending most of his time campaigning or partying like the election and inauguration are still a ways off. Once he demonstrates he's got some experience as a successful Chief Executive, maybe then he'll have a little credibility to offer advice that should be seriously considered. Until then, taking his advice is little different from taking the advice of a recent college graduate who thinks he knows everything.

GM should have been encouraged to make wiser business decisions, and if they couldn't get themselves back into a profitable position, they should have been allowed to file for bankruptcy - first attempting to restructure, and should that have failed, then liquidation.

I, in no way wish this president to fail. Congress on the other hand needs a good flushing. I agree that the bail-out should have never started with the banks, AIG or the auto industry.

When I say never started I refer way-back to when the government was pushing the banking industry to make loans to companies and individuals that in no way could pay it back with even the slightest falter in the market.

When I started seeing 125% loans on properties with inflated appraisels that were built so fast and under budget I referred to them as disposable, I knew it would come back to haunt us.

People who already owned homes took there false equity and bought automobiles they could not afford which just added to our problems today. I still think they all need to restructure without dumping more of our grandchildrens tax money into them.

We have started driving (pun intended) down a one way street. We should not have started the trip but now that we have....Let us hope for an orderly eventual bankruptcy!

Its going to take more than Wagner quitting to get this labor union run company back to profitability!

Now that obama has taken charge, maybe he should fire the union. That's the problem area.

I agree with Tchaka, This is way past socialism, this is the exact blueprint Hitler initially usesd for total control of Germany.

I cant wait for obama to take over the Voice over industry, those guys are over paid and not really that good.

Jay, I think you are right.

Anyone not doing their job(congress) should be fired by the President. Anyone(the government) getting money from us(we the people) should be responsible for their failures!

MAR

John, I never thought I would see your first sentence in any context!

APR

Sorry Jay, You may have missed my point!

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