PA007

Reasons to Bail Out GM

Provide a bailout on stiff terms. Wipe out the common stock holders, give a haircut to preferreds/bonds and impose 30-50% cuts across the board on wages, benefits etc. Compensate workers / management / bondholders with warrants for the steep haircut they take.
Then get rid of CAFE and car vs truck fuel economy standards. Simply tax gas at a uniform rate and let the companies and consumers decide what to build, sell and buy. The incentives will at least ensure honest effort and innovation. Reply |Report abuse