TruthSayer

GMAC Bailout Flaws: No Appreciation of History

GM failure is relative just like many other things. There are many alternatives and this is not a black and white issue.

I do not think a collapse of our auto manufacturing would occur. This is just like any other manufactured item. If you have too much supply you will have some pain as you transition back to equilibrium. Orderly bankruptcy with government backing is one gray alternative. This is used by almost any other manufacturer when they hit tough times. The US government could of backed all loans to suppliers to prevent the cascade of collapses. They could even promise to back all warranties as the transition was being made.

A truth - this goes for not just GM but the banks - Avoiding bankruptcy helps mainly current shareholders and the executive team.

GMAC plan is trying to prop up demand. You cant believe the solution is to prop up people buying cars when they dont need one and/or cant afford it? WHY is it the solution for many is to go back to living beyond our means? Its not sustainable.

On Dec 31 09:29 PM sr9web wrote:

> Ok, so what would you recommend? Let GMAC fail?
>
> Get real, you have no f'n idea how bad things will be if GM fails
> and GM needs GMAC.