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Obama “Fires” GM CEO; Stocks Plummet

March 30, 2009

GM CEO Rick Wagoner resigned yesterday at the request of the White House yesterday.  Today the markets tanked.

As of this the writing, the DJIA is down 3.42% or -265.63 points.  The DJIA currently at the 7510.55.

Adding insult to injury, Obama rejected the restructing plans of both GM and Chrysler saying they are inadequate.  The White House gave GM 60 days to restructure.  The White House only have Chrysler 30 days to make the deal with Fiat work.

GM (NYSE: GM) is down 91 cents at 2.71.  Chrysler is a privately-held company owned by Cerebus Management.

The Obama’s administration actions towards the auto industry is appalling.  A federal government firing a private company, despite receiving taxpayer dollars, is unprecedented.

Is this the end of capitalism?  Maybe the stock market knows something we are afraid to realize.

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