HOW DETROIT AND THE WALL STREET CAR CZARS KILLED THE AMERICAN DREAM
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SIGTARP Report
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The “taking out” of America’s hometown car dealers is perhaps the most misunderstood or little-known
story of the decade, certainly of the last few years. The collapse of the “Detroit Two” automakers
(General Motors and Chrysler; Ford is the third component that makes up the so-called “Big Three,” or
“Detroit Three” automakers), and a temporary government group designed to rescue them set the stage
for the events that transpired. The automakers saw new life. But a good portion of “Main-Street” car
dealers were left to hang out to dry. Main Street and Highway 61 are used as metaphors for the rejected
dealers, many of whose businesses were located on Main Streets or along highways in rural, small and
midsize towns, as consultants pointed out. And dealers, as portrayed here, represent entrepreneurs
everywhere, as symbols of the American dream.
The dream goes something like this: you work hard, play by the rules, treat others well, and you too can
attain the good life. It’s a dream that has reinforced the hearts and minds of Americans since the
pilgrims landed in Plymouth Harbor in Massachusetts to escape the tyranny of Great Britain in 1620. It
was recorded in the Declaration of Independence in 1776. The dream has brought immigrants to our
shores since that time. Outraged attempts to show the collapse of the American dream from the
perspective of dealers who won and lost on the battle lines. It’s generally known that the auto industry suffered great losses from 2008 to 2009. Of all businesses, car dealers suffered perhaps the greatest fall. As of this writing, many are still fighting to get their businesses back or are awaiting some restitution from court proceedings. Most believed their constitutional rights were violated, particularly their Fifth Amendment rights. As recently as February and March 2011, dealers filed class-action suits against the US government for the unconstitutional taking of their businesses without compensation, as you will see in the legal chapter.
story of the decade, certainly of the last few years. The collapse of the “Detroit Two” automakers
(General Motors and Chrysler; Ford is the third component that makes up the so-called “Big Three,” or
“Detroit Three” automakers), and a temporary government group designed to rescue them set the stage
for the events that transpired. The automakers saw new life. But a good portion of “Main-Street” car
dealers were left to hang out to dry. Main Street and Highway 61 are used as metaphors for the rejected
dealers, many of whose businesses were located on Main Streets or along highways in rural, small and
midsize towns, as consultants pointed out. And dealers, as portrayed here, represent entrepreneurs
everywhere, as symbols of the American dream.
The dream goes something like this: you work hard, play by the rules, treat others well, and you too can
attain the good life. It’s a dream that has reinforced the hearts and minds of Americans since the
pilgrims landed in Plymouth Harbor in Massachusetts to escape the tyranny of Great Britain in 1620. It
was recorded in the Declaration of Independence in 1776. The dream has brought immigrants to our
shores since that time. Outraged attempts to show the collapse of the American dream from the
perspective of dealers who won and lost on the battle lines. It’s generally known that the auto industry suffered great losses from 2008 to 2009. Of all businesses, car dealers suffered perhaps the greatest fall. As of this writing, many are still fighting to get their businesses back or are awaiting some restitution from court proceedings. Most believed their constitutional rights were violated, particularly their Fifth Amendment rights. As recently as February and March 2011, dealers filed class-action suits against the US government for the unconstitutional taking of their businesses without compensation, as you will see in the legal chapter.
