A Risky Investment

The administration is like the gambler who doubles his bet after every unsuccessful roll of the dice. It has so much invested in General Motors now that it can't be anything other than the principal shareholder.

But if the principal shareholder doesn't make the major directional decisions, who will? And if it does, will they be business decisions or will they reflect political judgments? That question answers itself.

The administration hopes, properly, to put GM on the road to prosperity quickly and then to sell its interest. The chances that it will succeed in doing so, given the political pressures to which it will be subjected, are remote. We taxpayers have made a huge investment that is likely to pay pennies on the dollar, if that.

By Slade Gorton

 |  June 2, 2009; 11:25 AM ET
Category:  Economic crisis
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