How is Obama going to explain GM fiasco?

Despite more than $19 billion in taxpayer dollars that was suppose to keep GM from going under, the giant auto maker is expected to file for bankruptcy on June 1.

Barack Obama promised that the government bailout would allow GM to restructure without filing for bankruptcy. Guess what? He lied.

Robert Romano, writing at GetLiberty.org, says the Treasury will now finance GM with another roughly $30 billion while in bankruptcy, which would last 60 to 90 days, bringing taxpayers' burden to $50 billion to "save" the company.

And, of course, the Obama Administration will nationalize one-third of the "Big 3," Romano says.

More from Romano:

Simply put: The fact is, GM was failing just fine without government assistance. And left to tried and true free market devices, the problems between bondholders and GM brass could have been effectively resolved, without presenting taxpayers with the tab. But since bankruptcy was not averted—despite a $19.4 billion infusion of taxpayer capital—the only thing that has now been achieved is that GM is now a de facto agency of the federal government, just like Chrysler.

In short, both are now line items on the federal budget. All at taxpayer expense.

There really is no description for what is taking place other than redistributionism. A new favored political class is being built under the guise of law, and it is all happening under the auspices of his imperial, impervious majesty, Barack Obama. So corrupt is this new system that even the courts are going along with it. Lawmakers speak nary a word against it. And the American people are left only to watch in horror as their own government turns against them, leaving them to wonder if they are next in line for wholesale asset confiscation.

Read Romano's full post at GetLiberty.org