In surprise move, GM forces U.S. government to file for bankruptcy
Automaker turns tables on White House, saying nation is bleeding red ink and taxpayers shouldn't be asked for endless bailouts. U.S. will shed unprofitable states as part of restructuring.
By Gary Puzzanjima, Staff Writer
Beleaguered General Motors took revenge on the Obama Administration today, surprising White House officials with a legal maneuver that forced the entire U.S. government into bankruptcy court.
"Nobody is too big to fail," GM boss Fritz Henderson said, citing the nation's trillion-dollar deficit, pork barrel spending and bloated Social Security retirement system. "We can't ask taxpayers to continue bailing out such a mismanaged bureaucracy."
Economists said the U.S. would need to dump underperforming programs and states, then reemerge as a smaller nation.
"Basically, there will be two countries a 'good U.S.' comprised of profitable states like Texas and Alaska, and a 'bad U.S.' saddled with astronomical health-care costs, pricey social-service programs and lame reality TV shows," said J. Morton Lippincott, a Harvard business professor. "The bad U.S. will be run by Congress. The good U.S. will be owned by Google."