GOVERNMENT MOTORS–GONE BEFORE YOUR TEN-YEAR OLD CAN VOTE

Nothing new about GM, not really. Not even the name “Government Motors.” The Govt., will own 70% of GM. Ah! Such hopes people have. Let’s play follow the leader, or is it leaders, who have now saddled the U.S. taxpayer wth ownership of a company that is doomed to fail, even under Bankruptcy reorganization.

The auto industry is running at about 40% of capacity. GM is running at about 34% of capacity, so even if half of the remaining factories shut down, it’s going to be a long hard struggle to reach as high as breakeven. GM will still be carrying a huge debt load, and how in the world is it going to compete with the non-union car makers like Honda and Toyota? Can you imagine the kinds of executive and economic decisions that will be made with the government as the major shareholder?