Another Monday and yet another big news day. GM filing bankruptcy and the approval of the sale of Chrysler assets to Fiat. The sad part of the GM story is that America is paying through the news to keep this company afloat. I believe the running tally was about $20B sunk into this foundering ship. The PC thing to do was to continue to feed money to this money-sucker and hope, just hope a Chapter 11 didn't come.
Well now, my fellow taxpayers, you own a lot of GM whether you like it or not. GM's problem, IMHO, was that the market made a decision on its products. Once GM got the message, it wasn't nimble nor humble enough to make the necessary changes in its product lineup and more importantly its cost structure. Both management and labor are at fault. A sad casualty of this saga are the lower level workers.
The idea that the government can turn GM around when career automotive executives could not is ludicrous. The reality in today's world is that government can do anything it wants and damn the torpedoes. I wish they would be better stewards of our taxpayer dollars instead of trying to save everybody from everything.
Stay tuned to my next blog about the increasing debt loads and yields and what that means for everybody.
"I wish they would be better stewards of our taxpayer dollars instead of trying to save everybody from everything" sums up my feelings exactly, not to mention your earlier point of GM not being humble enough to make the necessary changes to stay afloat. Well said! And, interesting blog - I look forward to keeping up with it!
ReplyDeleteIt is interesting to take a fresh look at GM now. Isn't there still a bad GM and a good GM? I believe the gov't will lose billions on the stock they took. Some say the cost was worth it especially with the jobs saved. I just don't know.....
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