On Jan 20, 1:48 pm, Just Wondering <
fmh...@comcast.net> wrote:
> On 1/20/2012 10:55 AM, sully wrote:
>
>
>
>
>
>
>
>
>
> > On Jan 20, 1:37 am, Truth and honesty<
Tr...@honest.com> wrote:
> >> On Thu, 19 Jan 2012 23:07:58 -0200, John Manning wrote:
> >>> General Motors and its partners sold 9 million vehicles around
> >>> the globe in 2011, the company announced Thursday, allowing it
> >>> to reclaim the title of world¢s top-selling automaker.
>
> >> Like always John, you tend to get excited over the short term and forget to
> >> see the big picture. GM has done well in the past month but look at the
> >> longer picture.
>
> >>
http://finance.yahoo.com/echarts?s=gm#symbol=gm;range=2y;compare=;ind...
>
> >> You would have lost money if you had invested six months ago.
>
> >> The big problem with GM is Europe, if Europe economy goes south which is
> >> likely, GM will go south too.
>
> > The big problem is that right wingers believe that
> > government solutions are universally worthless.
>
> > Most things don't need government to solve, and
> > there should always be vigorous debate over how
> > we want to govern, and what solutions are implemented.
>
> > In the GM case, anti-gummint types were willing to
> > let the auto industry die in the US to support
> > the failed notion that free-market is the solution to
> > every problem.
>
> No, the problem was an effective government takeover of a private
> corporation to do what Chapter 11 bankruptcy could have done more
> effectively and at less cost to taxpayers.
>
> > It turns out that the rescue of GM was worth it.
>
> GM should have filed for Chapter 11 reorganization. That's what
> bankruptcy is for in the first place, and unlike what Obama did, is
> expressly provided for in the constitution. It worked just fine for
> Delta Airlines. and it would have worked for GM too.
http://news.delta.com/index.php?s=43&item=167
This is a valid argument. GM should have
filed for Ch eleven a year prior to the crisis.
They didn't.
The reason behind the gov't bailout was made
very clear, the entire industry was at stake, not just
one company. When a company goes bankrupt and
gets protection, generally there are other successful
companies around that bouy the industry, provide markets
for the parts, supplies, that many other industries provide.
There was not another profitable US automaker ready
in the wings, Ford was under, everybody was hit.
chap 11 isn't a clean easy process, it often takes months
or years to clean up messes, restructure, or re-tool.
This timing would have been a disaster toward the other
supporting industries and a cascading job loss.
By intervening, GM kept the jobs it had, plus kept
the dependent economy afloat.
It was an emergency measure.