Why are we paying for GM's mistakes

With the “failure” of GM today we certainly have reached the end of an era… wait have we? A smorgasbord of news sites and stories talk about the end of the GM era, but I ask what has change? The real answer is American Debt. Somehow we just paid $30 billion for GM to go bankrupt. This isn’t bankruptcy like the common person believes it is. Think about it like this. If you or I were not able to pay our bills the lights get shut off, we get kicked out of our houses/apartments and they repo our cars. Now let’s look at the GM bankruptcy. GM will get an addition $30 billion in government support (in addition to the $19 billion they have already received) in addition to a reduction in debt from a startling $54.4 billion to $17 billion. Let’s count debt relief as income (as the IRS does for individuals). That means GM, for years of poor business strategy and union negotiations, has been rewarded with $67.4 billion. That’s almost as much as the total value of their Assets! America you are getting the SHAFT AGAIN. Oh wait, we get 60% of GM… who cares. The government is not in the business of, business. Yet somehow under the Obama administration, the Government (no us tax payers because realistically do we see any returns? No.) now runs banks, insurance companies and auto makers. Something seems very wrong.

 

America you need to wake up and realize that all these bailout will cost us dearly in the end. We borrow this money. It is not ours. Credit is not income, yet the government just like the people of this country continuously spends as if it was. We need to reign in this spending spree and let bad companies fail instead of saving them. I understand the consequences of letting a leviathan such as GM fail, but how is business going to change if it doesn’t? Lets look at the banks, people were shocked when they paid bonuses. Why are you socked? The people in power don’t change. The decision makers are still the 50-60 year olds that ran the company down into the ground. A CEO retiring does not change the direction of a company it changes the face. News flash America: unless we get really uncomfortable and have some serious ideological changes on how we do business because one day China is going to stop lending us billions and we are going to lose a lot more than an automaker, we are going to lose America.