Editorial Tide Turning Against GM?

It seems like, despite Barack Obama’s unequivocal support for an automaker bailout, that there are more and more editorials and blog posts advocating a GM bankruptcy.  I guess after the initial shock and fear of a collapsing auto sector have worn off, people are looking pass the tainted term of ‘bankruptcy’ and trying to deduce what in fact would occur should GM (or any of the other Detroit not-so-Big Three fail).

The New York Times reports on the vociferous antagonism of some Republican Senators in this article, as well as providing a bit of background on the debate as it currently stands.

Michael Shedlock, who was very active in his resistance (and activism) against the TARP has started to push back against this latest bailout as well (much later than I had expected… I have been waiting for him to reveal the extent of his resistance for some time).

Is this simply because so much time has passed with little noticable change in GM’s condition and the day-to-day lives of Americans that the fear has dissipated?

Is the pathetic and shameless panhandling by Rick Wagoner turning off American?

Are the Democrats showing their inability to build consensus, even despite their unbelievably popular President-elect actively pushing for a bailout?

I have some doubts about GM’s chances in bankruptcy, considering the nature (and dollar value) of auto purchasing.  Once again, I am by no means a bankruptcy expert, but I wonder how many suppliers could survive with their #1 customer in bankruptcy.

What is most shocking to me is simply that an industry that may be recently maligned, but politically powerful and easily portrayed as a blue-collar industry, has failed so spectacularly to grease the right palms to get something passed.  In the days of $700 billion being passed off to one evil looking bald dude, nearly no strings attached, $12 billion is too much to spend to put the automotive industry on life support?

Not to mention the recent remarks from Wesley Clark stressing GM’s importance for the nation’s security.

Does GM suck at EVERYTHING?

… and the cow goes moo