No Way to Run an Economy | Daniel J. Mitchell | Cato Institute: Commentary

No Way to Run an Economy | Daniel J. Mitchell | Cato Institute: Commentary: "In the GM/Chrysler bailout, Washington intervened in the bankruptcy process and arbitrarily tilted the playing field to help politically powerful creditors at the expense of others. Not only did this put taxpayers on the hook for big losses, it also created a precedent for future interventions.

This precedent makes it more difficult to feel confident that the rule of law will be respected in the future when companies get in trouble. It also means investors will be less willing to put money into weak firms. That's not good for workers, and not good for the economy."