General Motors, Having Fallen Far and Fast, Now Belongs to U.S.

As a stalwart in the post-World War II landscape that shaped mid-century American industrialism and the modern economic system, General Motors has always appeared to be one of those companies that go beyond mere balance sheets and profit and loss statements. It is, instead, a symbol of the country in many respects, with the Chevrolet "bow tie" logo almost as much associated with the U.S. as the stars and stripes. Now, however, the connection between the beleaguered automaker and the U.S. government is a bit closer than anyone could have ever envisioned.

GM entered court yesterday to file for Chapter 11 bankruptcy protection, prompting President Obama to note, "What I have no interest in doing is running GM." Despite that, Obama doesn’t have too much of a choice – he can choose not to run the company, but what he can’t do (at least not easily) is sever ties between the U.S. government and GM. The American public now own 60% of the company and $50 billion in taxpayer money has been invested to keep the automaker afloat.

The intervention is one of the largest every, and carries with it enormous risk that, in essence, could go beyond the failure of a single – albeit prestigious – company to become a thorn in the side of the Obama administration and the U.S. economy for years to come. Notes, Julian Zelizer, a Princeton professor of history and public affairs, "There is a huge wish list of things they want. They don't want any risk for taxpayers, at the same time they are promising potential rewards for taxpayers. They don't want to run this forever, but at the same time it's a failed company and they're taking on responsibility for it without any clear exit strategy. The longer the promise, the bigger the potential disappointment for people."