In the case of GM, we really just bailed out the $70 an hour assembly line worker. Without adjusting the underlying problems (the $70/hour worker), GM will just burn through the billions, and be back at the trough for more.
In the end, why should hard working taxpayers have to support these sometimes self inflicted failures? What happened to Creative Destruction, and hard lessons learned well?
NYT, DAVID STREITFELD Writes:
"The number of homeowners who defaulted on their mortgages even after securing cheaper terms through the government's modification program nearly doubled in March, continuing a trend that could undermine the entire program."