Crony capitalism at its worst

So let's keep a score card.

Successful dealerships closed without reason
Drilling banned in the gulf
Gibson guitar raid
Warren Buffet's investment in companies receiving large government subsidies (GE and BOA).......

Why did the Department of Justice raid Gibson Guitars twice in the span of two years, yet leave competitor C.F. Martin untouched? Both appear to use the same allegedly illegal woods. The allegation floating around is that it’s because Gibson’s CEO supports Republicans and Martin’s supports Democrats, and we have a Democratic administration hell-bent on punishing Republicans. Instinctively, I want to reject that theory. It’s too simple and too, I don’t know, obvious and even un-American. Gibson’s CEO may face jail time, and the company may end up failing under the weight of the federal boot. And over what?

Why does Warren Buffett, billionaire businessman, keep supporting President Obama despite the president’s obvious economic failures? Reading Tim Carney’s piece about Buffett and bank bailouts that appeared yesterday, it’s evident that at every turn over the past couple of years, Buffett has managed to cash in on huge government actions. Carney suggests that Buffett bought a major stake in Bank of America on the belief that the Obama administration will end up bailing that bank out, stuffing more money into Buffett’s pockets. One would expect a savvy and fair-minded businessman to oppose the rampant regulatory state that Obama has unleashed on the nation’s economy, but if the businessman stands to profit from it? If can use his influence to direct it to move in ways that help him? Does Buffett continue supporting Obama because he, Buffett, basically owns the president and knows he can make money off of his policies?

Why did the Obama administration shut down offshore oil drilling? Why did it take some car dealerships from their owners back in 2009? Do we really have an administration abusing its powers to punish its enemies? Is is really that simple?

Update: 3M would probably argue that yes, it is that simple.

Still wondering why companies are sitting on cash?

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