Politics to drive GM's future?

Filing for bankruptcy "could actually be the last capitalist act GM is engaged in," according to Dan Ikenson, associate director of the Center for Trade Policy Studies at the Cato Institute, a free market thinktank.

"Now the administration has every incentive in the world to see GM succeeed more so than Ford or Chrysler because of the sheer value of holdings," he continued.

"I think policy is going to hamstring competition ... and I'm afraid it might chase Ford right into the bosom of the government, and that doesn't bode well for consumers or for our economy generally."

Ikenson spoke with Greg Corombos of Radio America/WND. The audio of the exchange is embedded here:

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Ikenson contends it's going to be "awfully tempting" for Obama to "hold GM's hand as long as possible," especially since the UAW contract comes up for renegotiation in the midst of the 2012 election campaign.

"I rather doubt Obama will sit by idly if the unions get a bad deal from GM management."

"The unions are going to go over the heads of management and come straight to Obama," he said.

Ikenson adds there will be intense political pressure as dealers and facilities close and members of Congress "hear from their constituents that they're unhappy about it."

"There's a lot of room for politicking here and it's not a good example of how capitalism works."