Well, I was wrong. This recent post was prematurely optimistic.
According to Bush's remarks at 9am on Friday, he was influenced by his own advisers, who felt that GM CEO Rick Wagoner would spitefully push his own company into Chapter 7 liquidation, rather than Chapter 11 reorganization, if he was not lent the billions he wanted.
Bush blinked. There's not way around it. Between his honest desire not to hand his successor an in-liquidation auto sector, and his desire to foster a better legacy, he let his advisers talk him off of his innate conservative principles.
To me, this simply illustrates even more clearly what a contemptuous person Rick Wagoner is. His threat to destroy his own company, in order to cover up his mismanagement, is too egregious to describe.
But, that said, George Bush faltered and took the threat seriously. Sure, he limited the amount of the loan, and made it clear that he would leave any further assistance to the next president.
However, he missed the chance to force GM and Chrysler into a merger via Chapter 11, of their own volition.
The good news, though, is that Senate Republicans hung tough, and will be able to continue burnishing their conservative credentials in the months ahead.
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