http://money.cnn.com/2009/05/31/news/companies/gm_bankruptcy_looms/index.htm I'm not a big fan of the government taking over big business, they're politicians.
The US and Canadian governments will own 72% of the company. This is not good. Even if the company somehow became profitable and recovered, does anyone think politicians won't find a way to flush the profits...OUR profits....down the toilet? Not to mention, the politicians will now have greater influence over what kinds of vehicles are developed and produced.
I still think the market will drive what is produced. I also, don't the government will do any worse than the way it has been run.
Will we see legislation designed to help GM and Chrylser specifically, that will be bad for consumers? Politicians have done worse things
we wont see a penny. the money we lent to the banks was supposed to allow the taxpayers to share in the upside. instead the banks will pay back the loans and the taxpayers will get zero upside and the money will be reinvested in more troubling banks. a game of musical chairs where we take on all the risk and get zero return
This is crap.....our government should have let the market do it's thing. This debt did not happen over night!!! This debt was accumulated over the last 30 years by poor business decisions by the brass at GM. 85% of the debt GM had isn't even tied to this economy and it's problems. Gotta tell ya happy we have become GM's Piggy Bank. Now that we are going to give them a minimum of 30 billion for a total of about 50 billion, What is to stop them from just doing it all over again.........the government will just bail them out because we have put them on notice.......they are to big to fail.........this sets up a very dangerous atmosphere for the future
Did you guys even see who is tasked with running the whole thing in BK? http://www.nytimes.com/2009/06/01/business/01deese.html?_r=2&ref=todayspaper Couldn't find a guy with actual, you know experience, maybe even a little car experience. Oh well.
I don't believe this will work jdang, Americans are not trustful of the Govt to begin with, and now GM has effectively made themselves into a pariah and a company to be avoided doing business with. Add in the Govt will be designing cars (of course they say they won't) and people just won't buy what they've already paid 30 billion+ for...
We've already seen legislation designed to help them. And today, just a few months later, they're filing for bankruptcy. Why should I believe that they'll get it right 'this time'? With all the troubling decisions that have been made the past few months, in all facets of the economy, I'm just a bit cynical. I can't think of anything the government has a large hand in that is well-run or efficient. Starting with the government itself. I'm also curious to see how the forthcoming legislation will affect everyone else not named GM or Chrysler. Could those two gain a competitive advantage? After all, the powers that be have a vested interest in this venture succeeding. This doesn't feel like the American way.
Wait until you see legislation that is tailored specifically for whatever crap Government Motors comes up with. Or specifically to exclude the good stuff the other companies come up with
Whenever you let the government run something you are introducing inefficiency and corruption into the economy. Other countries have nationalized industries and it has always resulted in failure. And there will be backlashes in international trade too as the changes will be interpreted as protectionism in some countries.
Can't wait! Have to say I misread your post I quoted. Basically I posted for nothing, because I agree with that post.
Yeah but with private enterprise, there is a chance swift and decisive action can correct (and of course doom) companies. Look at Ford. Now they're just doomed.
