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.
A skeptical leftist's, or post-capitalist's, or eco-socialist's blog, including skepticism about leftism (and related things under other labels), but even more about other issues of politics. Free of duopoly and minor party ties. Also, a skeptical look at Gnu Atheism, religion, social sciences, more.
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As seen at Washington Babylon and other fine establishments
November 13, 2008
GM bankruptcy vs. bailout watch
Labels:
Big Three,
General Motors
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