Stansberry – Unions bankrupted GM
The GM situation is a microcosm of what’s gone wrong in our country.
In the June issue of my Investment Advisory, I argued that the bankruptcy process resolved none of GM’s core problems. The process was subverted by the political establishment, which sought to protect one class of citizen at the expense of the regional economy, GM’s bondholders, and its customers.
If we can’t apply the rule of law and sound economics to fixing one of the world’s most important manufacturing concerns… it doesn’t bode well for anyone else being afforded these privileges, either.
That’s why it’s so important for you to understand what happened.
Most people simply don’t realize that the bailout of GM wasn’t a bailout of the company. It wasn’t a bailout of its shareholders, who lost everything… or its bondholders, who lost almost everything. Where did the money go? To the union. The United Auto Workers (UAW) ended up with all the money.
Daily Wealth
6/21/12
Magnolia Tribune
