Friday, December 12, 2008

Intervention, interrupted

And so it has come to this:

"Because Congress failed to act, we will stand ready to prevent an imminent failure until Congress reconvenes and acts to address the long-term viability of the industry," Treasury spokeswoman Brookly McLaughlin said.

And White House spokeswoman Dana Perino said the administration is considering using the Wall Street rescue fund to prevent the USA's strapped carmakers from failing.

Perino, speaking aboard Air Force One as President Bush flew to Texas for a commencement speech, said it would be "irresponsible" to further erode the economy by allowing failure in Detroit.

I think Ms. Perino has used the wrong verb. Instead of "allowing" in the previous sentence, the word should have been "enabling". Let's try it that way:
it would be "irresponsible" to further erode the economy by enabling failure in Detroit.
See how much more accurate that would be? Giving cash to GM and its unions in its current condition would be like giving the keys to a liquor store to an alcoholic.

Last night the GOP senators tried to stage an intervention. It looks like the GOP president is about to offer GM/UAW an open door to escape from the reality of the situation.

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