Thursday, June 4, 2009

The Economist: Obama no true leftist

The Economist argues this week that no true leftist would be as reluctant as Obama to nationalize banks or as coldly calculating as Obama in letting Chrysler and GM sink into bankruptcy. Accordingly, The Economist judges, Obama is not a leftist.

It seems a stretch. Citibank has been nationalized, effectively, as has AIG. Freddie Mac and Fannie Mae certainly have been nationalized. Bankruptcy has not been especially painful for either Chrysler or GM. Chrysler is already out. The administration expects that GM's bankruptcy will last only 3 months. At worst, the two companies have dumped or will dump some dealers and some vehicle lines. But they also will have been relieved of much debt and all shareholders. The UAW has escaped nearly unscarred.

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