To this day, most Americans do not truly grasp the underlying, fundamental problem of the government having bailed out two major auto companies by simply taking them over, and disposing the assets as the presiding administration saw fit.
The event was not just highly controversial. These auto bailouts did an end run around bankruptcy law. to defy bondholder rights and hand over stockholder assets to the auto union. (It has the U.S. taxpayer underwater as a stockholder to this very day.)
And
it resulted in one of the companies virtually being handed over
without Congressional approval to a foreign company, not one for the
American economy to prosper from.
This
was not only classic crony capitalism, it was state-controlled
economic action, and fundamentally unconstitutional. (See the Earl J.
Weinreb NewsHole® comments.)
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