GM bankruptcy vs. bailout watch

First, contrary to hand-wringing by Rust Belt Congressmen, including (apparently) one who just happened to be elected President recently, there’s evidence a GM bankruptcy would be well short of a catastrophe.

On the stakeholders’ side, as the story notes, most GM stock equity is already toast. On employees’ future, GM says pension obligations are already funded adequately.

So, that leaves the old 1970s Fram oil commercial question – “Do you want to pay a little bit now or a whole lot later?”

Setting aside the question of further stranding environmental costs by propping up the often anti-environmental Big Three, I don’t want to pound more money down that rathole.

And, for better or for worse, a GM bankruptcy, while huge, would be far smaller than that of Lehman Brothers earlier this year.

So, Mr. President Elect, don’t give — or loan — the formerly-Big Three $25 billion, let alone $50 billion.