Early Reviews of Obama's GM 'Gamble' Don't Look Good
A Rasmussen poll released Sunday pegged support for the GM plan at just 21 percent, with 67 percent opposed. A clear majority of respondents would rather let the company go out of business than provide any more government funding.
http://voices.washingtonpost.com/44/...as_gm_gam.html
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I'm thinking that by the mid-term election in 2010 billions more taxpayer dollars will have been pumped into GM with no end in sight to the dollars needed to support not really GM, but the UAW.
I don't think anyone here would personally invest in GM at this point in time - but Obama has, big time - for all of us.
Millions of Americans seem turned off by these events - perhaps Millions will avoid buying GM products - possibly buying Ford products, etc.
I suspect that keeping whatever you have will be the thing to do.
It would have been cheaper, and much less messy, if GM had never received a cent of “bailout” money.
Back in 1979, Chrysler was on the ropes, but they took a loan guarantee from the Federal government, and with this guarantee, went to the commercial money lenders, and under the leadership of Lee Iacocca, returned to viability during the decade of 1980-1990. Mr. Iacocca has drawn upon the lessons learned in those years, and recently released his recommendations with the book, ‘Where Have All the Leaders Gone?’
Apparently, not many of these recommendations are being taken seriously, if they are considered at all.
Even ignoring the fact that patriotic Americans, GM's customer base, will boycott Government Motors, how could GM survive long enough to change their direction, let alone to find a profitable direction? No sensible person will loan GM money in the bond market, not with the rule of law suspended in favor of UAW interests. No sensible person will buy a stake in a company with a negative net asset value.
GM will burn through $10B a month in our tax dollars until it becomes too politically costly for obama to continue paying back his UAW campaign donors, and then GM will die - long before any change in market or management strategy has time to work. There is no other possibility.