John_S

GM Bailout Would Be Agony for Taxpayers

Well, I'm sure it's obvious to anyone paying attention that the financials are the underpinning of our financial system and well economy. I know I like to be able to trust a bank to hold my money rather than keep it in my mattress. The loss of the financials pose tremendous systemic risk to the economy and the United States.

The loss of GM or al of the big three presents no systemic risk whatsoever. It will confine the problems to Michigan and a few other states with support industries (parts). This will in no way cause a systemic crisis.

Looking at your comments (currently 11), they are all on the topic of saving GM. Are you an unfortunate stock holder or an unfortunate employee? If you're an employee, don't worry you'll still have a job in the end. It will probably be with Toyota, Nissan or another auto manufacturer with a clue as to how to run a business.

GM should fail. The sooner GM enters bankruptcy, the sooner someone can step up to offer debtor in possession financing and get a new management team to do something about GM's problems. Until then, GM should not get a penny of taxpayer money. They will waste it like they have for the last 30 years.



On Nov 16 10:19 AM John D wrote:

> Burden on taxpayers?? If the auto industry does not get the same
> relief that the financials are getting - there is no use in bailing
> the financials out - In very simple terms - people need to have a
> JOB in order to make some MONEY to pay the TAXES to bail out the
> financials as well - if you bail out one and not the other - WHO
> is going to pay the TAXES to bail out just the financial sector??
> therefore it would be usless to do only one. It's not just GM - Ford
> & Chrysler that are in financial trouble - it's the WHOLE country
> - they are just caught in it the same as everyone else - this is
> not the time to say the Big 3 don't run their businesses efficiently
> - look at the stocks - they are definatley not alone - EVERYONE in
> North America needs help now - and it's OUR job to pull together
> and do that - not to lay blame - Trillions on WAR in Iraq but not
> a few billion to FEED your OWN ?

Should We Really Bail Out the Big Three Automakers with $73.20 Per Hour Labor?

The only thing the government should offer to GM is debtor in possession financing to help them emerge from bankruptcy if no one else will provide that financing.

Giving GM money now is like giving heroin to an addict. It won't help them and only seeks to enable their terrible behavior. Once that addict gets into rehab (bankruptcy for GM) there can be real assitance offered that might make a difference.

Sure there is a risk that GM will continue to do completely moronic things like it has for 30 years, but once their in bankruptcy they'll have someone looking over their shoulder the rest of the way forward. Then the have a real chance of curing what ails them.

GM needs to go into bankruptcy. The sooner, the better.