A couple of weeks ago I blogged that those who feed at the government trough would reap the whirlwind.  Those words turned out to be prophetic in their accuracy as that’s exactly what happened today at GM when Chairman and CEO Rick Wagoner resigned “under pressure” from our friends in Washington.  This was done ostensibly to pave the way for another round of bailout funds.  The government apparently didn’t think he’d done enough to turn the company around, so they forced him out.

Now, lest you think I don’t understand business, I agree with the assessment of what he’s done and not done.  He should have been able to predict the housing bubble bust, and he should have known it would have a wide-ranging impact on everything — even cars.  Do I think he should have resigned sooner?  Of course.  Do I think it’s good business practice to make a change?  Absolutely.  In fact, where was the board of directors through all this?  Why didn’t they make a change?  What I abhor about this situation is that it’s the government forcing him out.  I am categorically opposed to any government intervention in business.

The duplicity in all this is what gets me.  They fire the CEO of GM for under-performance during a stressful economic time.  But what about Barney Frank, whose lack of oversight over Fanny Mae and Freddy Mac caused this whole economic crisis in the first place?  Our friend Barney is the first one to express outrage at the failures of others, all the while deflecting any criticism of his own lack of performance.  It galls me that those who caused this whole mess sit in judgement of those who are trying to pick up the pieces of a mess made by those who judge them.  How could that possibly be construed as just by any measure?

At any rate, there is no such thing as “free” money.  Don’t ever forget that.  You’re better off closing your business than putting your future — your destiny — in the hands of some corrupt entity who will judge you for their mistakes.