Quote:
Originally Posted by Villages Kahuna
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We need to support GM financially. I only hope that our elected representatives just don't hand the GM management a check with no strings attached like they did with the huge amount of money they kicked into the banks, Fannie, Frddie, AIG, etc. All that would do is to prolong the ultimate failure of GM. No, this time everyone should be required to pay a stiff price for a taxpayer bailout--the management, the unions, everyone involved. Otherwise it will just be wasted money.
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Strings or not, no matter how many people (suppliers, spin-off services, etc.) rely on GM in some manner or another, throwing money at a company with insufficient sales now, and no reliable forecast for break-even sales in the future, is simply delaying the flush for a very short time at high cost to the taxpayer - GM's primary customer base who is not buying the product!
Sales are the only way to prop up a company which exchanges metal-for-money. So, if a "bailout" via a guaranteed purchase of GM products is the plan, it has a chance of being successful. Anything else just stacks more finished, and unsellable, products at dealership storage sites - and that does not solve the underlying problem, just makes it worse!
So, unless there is a plan (e.g., tax deductions, selloff at below-cost for existing inventory, etc.) that actually makes GM's products more attractive to consumers, and the consumers can be expected to respond by purchasing GM's build-to-inventory backlog, what good can possibly come from throwing money at a company which continues following the same business model that has led to potential implosion?