The Day the Music Died: Musings on GM and America

by Diane Wilson

Many years ago, I listened incessantly to a song called American Pie, and the words stick in my mind, "Drove my chevy to the levee, But the levee was dry. And them good old boys were drinkin' whiskey and rye, Singin, this'll be the day that I die, this'll be the day that I die." Yesterday, June 1, 2009, I felt the music really did die as GM went under, as contained in The Huffington Post.

Alright, let's consider American Pie another way: "Drove my Corolla to the levee, But the levee was dry." Or, if we really want to go 2009, "Drove my Prius to the wind turbine, but the blades were rubbing, while top math and science students were drinking lattes, saying I need more credentials." Where's the magic?

I still think the fates of GM and America are intertwined. A quick look at the history of the Dow components provides a fascinating glimpse of the movement of the economy from America to points beyond. Who today has even heard of Dow components American Beet Sugar and American Can and American Car and Foundry and American Locomotive? Today, a good investment manager will weigh AT & T(T) and China Mobile (CHL) and decide the latter has greater prospects for growth. Similarly, as the world tilts towards Asia, Chinese carmakers are aggressively eyeing Hummer and all of the other American leftovers, savouring the tasty treats, according to The Financial Times. Make a note of a company called Geely -- it is looking at Volvo, according to reports.

Clearly the American management of the big carmakers did a terrible job for many years and abandoned defense. While they were up to I don't know what, Toyota and Honda and others scored goal after goal on an open net. Then the housing and credit crises hit and the music really did die. Exit Chrysler. Exit GM. But not until most of the American banks had been rearranged in one way or another. Lehman Brothers -- you do remember that investment bank? How about Bear Stearns? We could go on.

So, now we have Obama in net, which cynics could laugh at, given that his knowledge of the game ranks lower than bowling. However, I think Obama has put in a floor for American industry and said, "Enough. These are our businesses and we are not letting them go. Even if the government must own them, we are keeping them alive."

Which means it might be cooler in the future to drive your Chevy to the place where they make solar panels, and pick up arugula on the way home. You will not want to miss how President Obama puts the economy and businesses back together again. This is fascinating stuff, worthy only of someone with a mind like an Obama or a Geithner. And, I believe this Administration would dearly love to put the word America back into the many companies it now oversees.