If you think the economy is in the tank today just wait until GM goes down...
Agreed. The "ripple effect" will be more like a tsunami. Also, Gettafinger, should back off on the UAW concessions, he should go back to the auto makers and tell them UAW members are willing to take cuts in medical or pay, phase down quickly, not two years from now.
What good to an ecomony is a business that looses 18 Billion Dollars every 3 months? People are buying cars built in the USA. I own two late model vehicles that were built in the USA. A Toyota and a Honda. GM has been making substandard vehicles since the 1950's. Now that people have a choice, they are spending their hard earned cash on vehicles that are reliable. And those vehicles are NOT GM vehicles.
The only way that GM will survive is if it goes bankrupt and reorganizes and cancels all its union contracts and fires all its upper management and starts building cars that people want to buy. If we give them money now, they will continue to loose billions of dollars every month until even the US Government can't bail them out.
Buy American.
Buy Toyota and Honda.
GM has destroyed over $100 billion of capital in the last 25 years. The economy will be better without it.
IWM, a simple Exchanged Traded Index Fund, is worth $9.61 billion.
Bet you never heard of it ~ has about 5 employees, manufacturers NOTHING, has no debts, owns no assets, and still, it's value on the stock market is 5.5 times that of GM.
Over the past 5 years I've bought and sold IWM numerous times and earned about 3 times my investment. (NOTE: I sold in September just before it crashed to its present pitiful state).
If the UAW thinks GM is all that important I'm sure they can buy it outright!
If you think the economy is in the tank today just wait until GM goes down...
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It’s already down and to keep it alive by burning up cash does nothing more that give welfare to recipients who got into this mess on their own. For those who think this is a good idea, why aren’t you pushing for a direct cash payment from government rather than fiddle with congress, union leadership and automobile management. Just give cash to everyone who needs it and forget the middle players. /s