The latest attempt to rescue too-big-to-fail companies now involves General Motors. When all is done, the government will own more than 80% of the company (about 10% will be own through the employee pension plan, part of which was hived off to the government two years ago). Together with AIG, these massive diversions of resources can only lead to more taxation and a longer economic recovery.
How can anyone imagine the U.S. will succeed with her State Owned Enterprises when the 50-year history of such ventures in China, Brazil, Britain, Italy, France, and Canada tells us different?
This infuriatingly common sensical article in the New York Times lays it out.