DETROIT, AP WIRE MARCH 29th 2009 -- General Motors Corp. Chairman and CEO Rick Wagoner will step down immediately at the request of the White House, administration officials said Sunday. The news comes as President Obama prepares to unveil additional restructuring efforts designed to save the domestic auto industry.
The officials asked not to be identified because details of the restructuring plan have not yet been made public. On Monday, Obama is to announce plans to restructure GM and Chrysler LLC in exchange for additional government loans. The companies have been living on $17.4 billion in government aid and have requested $21.6 billion more.
Detroit is such a sewer of unbelievable poverty and crime that now an entire neighborhood has all but disappeared. All that is left is a bunch of boarded up houses now that outnumber the residents. It's a testament to what happens when big government liberalism has total control of all parts of government for decades.
Finally, there is a crisis of purpose. Detroit has mocked climate change, assumed cheap petrol is an never-ending and unchallengeable American right and shared the neo-conservative agenda that government is necessarily and always bad. Now, as GM's submission to Congress acknowledges, the lack of an American welfare system means that American companies have to assume crippling obligations that their competitors do not. Moreover, the dysfunctionality of free American finance means that the reviled federal government must become Detroit's banker.