In a dramatic move, the Obama administration today announced that restructuring plans issued by General Motors and Chrysler are untenable, upping the likelihood of bankruptcy among the Big Three and effectively launching one of the biggest instances of government intervention the economic recession has yet seen. “These companies and this industry must ultimately stand on their own, not as wards of the state,” President Obama said this morning. “After careful analysis, we’ve decided that neither goes far enough.“ 

The American people are counting on President Obama to spend their money wisely. As it’s related to sport, a general manager might need to fire the head coach to spur their team to success. However, the vagueness with which US President Barack Obama dismissed General Motors’ CEO Rick Wagoner, has left a gray zone between the corporate and political sectors, and could have a deleterious effect on American corporate confidence. 

Banks have clearly been given far better treatment from Washington, leaving a lot of head-scratching. Critics accuse the government of a double-standard in governmental information, and it will be interesting to note whether Wagoner’s ousting signifies pressure on banking CEOs or if this era of government intervention will become far more blurred and effect globalized trade further.