[johncocktoasten]

Your stomach is going to turn even more when stage 2 of this ridiculous exercise hits.

Stage 2 of the nationalization of American industry will begin taking place when investors begin to shun companies who have accepted federal money because of the political risk. (ie government uses controlling investment to wipe out equity holders) This shunning leads to dramatic de-valuations of companies the government has been investing in/bailing out.

In addition to loss of investment, consumers begin to shun government owned enterprises due to inefficiency and poorer product offering.

In response to the decline in the value of the government investment, more stringent fiscal and regulatory restraints are placed on “non-participating” institutions and companies. With the government “approved” institutions gaining an advantage, consumers begin to abandon the remaining independent companies.

Eventually, government owns industry in its entirety.

[KarlInOhio]

Throw in a round of mandatory voluntary participation like the banks had. Not all off the big banks that were bailed out wanted to be partially nationalized, but non-partcipation was not allowed.

I wouldn't be surprised to see Ford being required to participate in the auto bailout because if they didn't take the money it would make GM and Chrysler look bad.