Would You Invest in This Company?

Unless it's been totally mis-reported, it seems that Chrysler is about to be controlled by a partnership between the UAW and the Federal Government.

Let's think about that for a moment.

The Federal Government, now wholly owned by the Democrat party, exists to gain and build political power for the benefit of an entrenched and growing bureaucracy.

The UAW's mission is to obtain the best possible pay, benefits, and working conditions for its membership while enriching its leadership.

Would you invest in a company who has Barack Obama as the de-facto Chairman of the Board, and the leadership of the UAW constituting the Board of Directors?

My first thought was, what a great opportunity for Ford. Ford refused the federal bailout, which Chrysler and GM have discovered was a Faustian bargain. So it would seem that Ford now has the opportunity to dominate the domestic automobile market, since their American competitors will from here on be run like the US Postal Service.

Of course, the foreign auto makers must also be drooling over the prospect. Toyota and Honda would seem to be guaranteed domination of the auto market for the foreseeable future.

Then again, maybe not. Because the new owners of Chrysler, who presumably are on a path to also control General Motors, won't be happy about the prospect of competing against independent, more efficient, higher quality automobile companies.

So before you run out and invest what's left of your IRA in Ford, consider that the new owners of the other two car companies won't enjoy competing against a private car company. They have the power of a single-party government that will set its sights on the competition, if not determined to shut them down, at least making sure any of their competitive advantages are taxed and regulated away.

Look out Ford, Toyota, Honda, BMW, Volkswagen, Kia, Hyndai, Mazda, and everybody else out there with the gall to take on Obama and the UAW. Your days of competing in the US market selling vehicles consumers want may be numbered.