Tuesday, June 02, 2009

Government Motors

"Wall Street Journal: The government-orchestrated shrinkage will cost taxpayers $30 billion, on top of $20 billion in U.S. funds already put into the company. In exchange, the U.S. will own 60% of the new GM. In all, the rescue of the car industry could cost taxpayers close to $100 billion.
GM -- which hasn't made a profit since 2004 -- declared in its filing that it had $172 billion in debt and $82 billion in assets."

Is there an example of a government owned corporation being competitive on a global market?


This then is where generations of incompetence, and a reliance upon the exertions of others to carry society have led us. The bastion of freedom in a dark world, snuffing its own lights of the free market one by one in a perceived maelstrom of 'economic crisis'.

"Chief Executive Frederick "Fritz" Henderson appealed to consumers to "give us another chance."

The government's plan calls for 10% of the new GM to be owned by existing bondholders, while a United Auto Workers union health-care fund will own 17.5%. The Canadian government will own the remaining 12.5%.

Next Monday, after 84 years, GM will cease being part of the Dow Jones Industrial Average, replaced by technology company Cisco Systems Inc."

Ah, the words of a true business man. Give us another chance.

Its also good the UAW will own 1/6, and the current bondholders only 1/10. Makes all kinds of buisness sense. But then, what does?


Solameanie said...

You know we're all going to be driving Yugos in the next few years, don't you? Only they will bear the GM logo. None of us will be able to afford Chinese Hummers.

Palm boy said...

Right. Provided those Hummers can even be imported here, what with the CAFE standards and whatnots.

^ chinese hummer story