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Monday, June 01, 2009

General Motors files for bankruptcy, taxpayers having to bail it out

Read about it here.

So... who's gonna be the first to buy a car manufactured by the U.S. federal government?

(crickets chirping...)


Anonymous said...

Something is profoundly wrong when filing for bankrupcy is the road to profitability that could not be obtained from the company's leadership.
I held stock in Delta airlines, the most financially sound of the 3major airline companies about 6 ago.
They were allowed to file bankrupcy, making their stock a total loss to loyal shareholders. Now they are back in business and I lost everything I invested.

Are we to encourage major companies to shirk their financial responsibilities, then reward them with another govt sponsored bailout?
GM (and the other US auto markers) have had several decades to read the writing on the wall regarding redesigning their products to be competitive with the Japanese and other foreign auto makers.
The US auto companies are also saddled with excessive costs associated exceedingly high labor rates.
They aren't competitive (with the partial excaption of Ford) and should not be rescued with taxpayer dollars. We've already bailed out Chrysler once.

I say let them go under. Sell their assets on the auction block and be done with it.

The US is supposed to have based its economy of building a better product that people wanted to buy in an open competitive market system (Capitalism, remmeber?).
I have no sympathy for management that can't control its own company or labor that is so spoiled it demands the highest rates for an inferior product.