Obama swoops in on GM

By Jennifer J. Foster

Published: June 1, 2009

In addressing the historic bankruptcy of General Motors today, President Obama announced that the U.S. government will “invest” another $30 billion in the foundered company.

Another $30 billion. In a bankrupt company. On top of the $20 billion that didn’t save it.

After speaking the words, the president said, “I understand that this may give Americans pause.“

Give us pause?

How about make us queasy?

Obama went on to explain that the government will act as “reluctant shareholders” and is making the $30 billion “boost” to protect its previous “boost”—in other words, invest more to try to make sure we don’t lose what we invested before.

The government, he said, has no interest in running GM; in fact, the “new GM” will be run by an independent board of directors and a CEO with a track record in “American manufacturing.“

Perhaps acknowledging a potential political problem, the president said that in “all but the most fundamental decisions,“ the government will not exercise its rights as a shareholder.

As examples of things that would not be “fundamental decisions,“ Obama cited things like placing a new factory.

Yeah. Having a political entity in charge of decisions like that would be ... bad.

So the die is cast. GM now stands, at least for the time being, for Government Motors.

Read Rich Galen’s column on this development. He wants to know what you think about buying a GM product.