[Posted by Karl]
In our last episode, I commented that The Atlantic’s Megan McArdle may have been mistaken in thinking a General Motors bankruptcy was “inevitable”:
McArdle may be underestimating the lengths to which the Obama Administration and a Democratic Congress will go to bail out the UAW and its electorally-important, white, blue-collar, workers in the swing states of the upper Midwest.
Ed Morrissey highlights today’s New York Times report that GM has prepared a “surgical” bankruptcy, in which taxpayers would shell out tens of billions of dollars to cover the legacy costs of the company’s health care obligations. Cap’n Ed is shocked:
I suspected that any real resolution to this would require restructuring of GM’s pension obligations. I didn’t expect that we would have to completely underwrite them.
I don’t know how Ed could have expected anything else.