Charles Krauthammer's Take on Obama’s Plan for the Auto Industry

Obama owns GM, and I don't know about you, Bret, but I'm deeply reassured that the largest company in America is owned by a guy with the vast private sector experience of Barack Obama.

His speech today, as always, was eloquent, and it appeared clear, but it really is not. It's not exactly clear what he is aiming at.

As I understand it, I think, though, the plan here is to send GM into Chapter 11, either a real Chapter 11 or a disguised one in 60 days, and to send Chrysler over to Fiat or the wolves, whichever will take it.

With GM, the reason that I suspect it is going to end up in Chapter 11 is because he would not have offered the guarantee on warranties otherwise. The reason people are worried about a Chapter 11 is, that the argument is if that happens, people will not have confidence in the company, and the sales will dissolve.

But you have got to ask yourself as a constitutional aside where in Articles II of the constitution is the president allowed to unilaterally guarantee auto warranties? I mean, tomorrow it will end up — we started with bank deposits, money markets, auto warranties, and tomorrow it's toasters.

But if you have Democrats in power, nobody asks about the constitutional questions.