Quote Originally Posted by Muskan View Post
The basis of GM's claim is essentially that they are too big or too important to fail due to their massive labor force. But how massive is their labor force relative to other American companies? It may be surprising that the following companies employ a larger number of workers than GM: Target, AT&T, GE, IBM, McDonalds, Citigroup, Kroger, Sears, and Wal-Mart. It is also worth noting that Home Depot, United Technologies, and Verizon all employ nearly as many workers as GM.

The question must be posed: Should the government bail out all 12 of these companies and, if so, at what cost? I doubt that if Wal-Mart, with their 2.1 million employees, went to the government or the American people and demanded a bailout that they would receive much sympathy, let alone money. But if Americans are going to base worthiness of bailout on number of employees alone, then Wal-Mart is almost 7 times more worthy than GM.
It is unethical to force taxpayers to pay billions of dollars in order to bail out a company with a failing business model. After all, they cannot even claim, as banks did, that it is an industry-wide problem. Because if it were industry-wide, Toyota, Hyundai, Honda, Volkswagen, etc. would all be joining their American counterparts on Capitol Hill with their collective hands out.
For years GM and Ford have produced a product that consumers do not value as much as the product provided by their competitors. Rather than changing their products or business model, they instead spent small fortunes on lobbyists. If the government does bail out GM, rest assured that this will not be the last time. But even if the government gives GM a check every week, there will come a time when no amount of government money will be enough to save them.

What is the best solution? In a word, bankruptcy. By filing for bankruptcy protection, GM can escape the death grip the UAW has on the business. Bankruptcy would allow for restructuring on an unprecedented scale. There is a good chance that a highly competitive company could rise from the ashes of what we today call GM. Even if GM itself was unable to survive bankruptcy, the resources freed from its grasp could be hugely beneficial to other automotive companies that make products that American consumers value more. As taxpayers, Americans have a right to object to this misuse of our money.

Anyways, Obama doesn't understand simple economics. By bailing out he will be investing the hard earned tax payers money in a venture which is bound to fail. But hey! who cares for the hardworkers is a socialist regime? Noone.

He may not fully understand Basic Ecomincs now, but his Advisers certainly do and the will advise him as to the best stragedy to use
He may have one ofthe best if notthe best Economist adivsers right now of any President in years, wether they are just part of his transition team is yet to be seen, but I have no seen any President Elect withthe Economic Advisers he currently has
Remmber he did not creat this mess, he is inheriting it, give him time, people may be pleasently suprised with what he does

The loss of GM would have catstorphic effects on our nation Economy FAr greater the WalMart Collapsing,
WalMart where to "Go Under" alot of poeple would be outo f jobs, yes

GM goes under it has a domino effect, it effects the Car Induistry, Car Parts Indusrty, Bank Financing ect GM going under would be Catastophic, WalMart would be a Bad Storm we could handle
If GM went under, no more Auto Zone Stores, No More Firestone Dealers ect without Cars why have these companies, car parts would not need need to the magnitude they are now you loose GM you looose countless "Unbrella Companies" who support car parts, repairs ect"
WalMart you loose a large retailer, no where near the effect of a GM going under


FYI anyone apprcite or respect Warren Buffet as an investor??
If you Warren Buffet is on Obama's TRansition team for Economics he ask Obmam if he could join, Obamam did not ask him to come aboard,
Take Warren Buffet, Robert Reich. Paul Volker ect seems ot me a fair decent set of minds for his economis transition teams and he has many others