How the GM bailout will determine the success of the financial bailout.

By now all of us know the reach of the auto industry in our society.Fully one fifth of the jobs in this country is in some way or other tied to the auto industry.It is on the strength of this industry and its reach that the US got prosperous.Conversely, if that industry vanishes, we are likely to see the impoverishment of many communities from coast to coast.

For a society already poised on a knife edge as a result of years of accumulating debt, removing the prop provided by the auto industry is likely to topple the house of cards built by the financial industry unleashed by Alan Greenspan’s bubble blowing with other people’s tax money.

The  disappearance of the auto industry will savage the tax base of many communities which use the tax base to issue municipal bonds that finance road construction, hospital upkeep,police and fire services, the essential services that are needed by any community.Ironically, the contraction of the tax base will hit even the Wall Street firms that specialize in bond issues bringing down their fortunes.

The wizards of Wall Street who set about destroying the health of communities and states to enrich themselves have dispalyed all the wisdom of a man who saws off the limb of a tree on which he is perched.