How Obama Killed Investment in the Auto Industry

Obama's nationalization of GM and Chrysler effectively destroys all future incentive to invest in American car companies.

Would you invest in any company -- auto or otherwise -- in which the government can confiscate, revalue and redistribute your investment return? Even if you were dumb enough to invest in such a company, do you think it's fair or right for the government to interfere in the first place?

Obama thinks he's saving these car companies, but the raw truth is that his actions will severely prevent free capital from reflowing back into them. The result? Obama will have to use even more taxpayer money (or print it) to subsidize reinvestment back into these companies. (Of course, he's assuming that the companies will once again make vehicles that people want to buy. If they don't, then our tax money will be in an even more dire predicament).

When people who don't have a clue about value investing all of a sudden know what investments are best for America, prepare yourself for disaster.