So GM’s fate remains to be seen but at least from the above article I’m seeing similar opinions from others. The comments section in particular spells out exactly why I’m rooting for GM’s failure – yes, I think GM should fail. All companies that are poorly run, receive government handouts, and step all over innocent investors (who thought they were buying a Dow Jones index quality stock) should fail… the sooner the better.
And just to make sure it’s captured, here’s the comment from the above article that spells it out:
Because the Obama administration allowed GM to restructure without touching the Union contracts, GM was placed right back on a new, slightly longer trajectory towards bankruptcy, which will occur under an unsympethetic Tea Party / Republican administration. This whole mess was a big scoop of tax dollars handed over to the unions to keep the party going for a year or two.
Personally, my resentment lies not in the bailout, but in the fact that the “pre-packaged bankruptcy” was really just a collusion between the Obama Administration, the Obama-controlled TARP banks, and GM to muscle the bondholders out of the way and hand the company over to the unions.
Bondholders are supposed to receive 100% of their money before unsecured creditors see a penny, but because the Obama Administration had seized control of the major banks holding the majority of GM bonds, and rewarded them by allowing them to borrow huge amounts of money interest-free from the Fed and purchase interest-bearing Treasury bills, a majority of the government-control bond holders “agreed” to forfeit their bonds. The small bondholders, like the Indiana Teachers Union and anyone and everyone who ever purchased GM bonds individually as a retirement investment were the victims of this act of outright big-government/big business theft.
That’s why I will never, ever buy another GM or Chrysler product again. To do so would be the moral equivalent of receiving stolen property. The company is permanently deeply tainted by the lawless theft of bond assets from the individuals and small investors who put their faith in the laws of the United States of America that this would not — could not — ever happen.
As far as I’m concerned GM and Chrysler can’t go bankrupt and out of business fast enough.
Today, 07:31:51 – Flag – Reply
11/20/2010 – Something doesn’t add up… GM does an IPO that is wildly successful, even to the point of driving the market up 10% in a single day.
Did the UAW disappear? Did the government’s meddling in their business vanish? Did orders for the Volt jump enormously?
I just don’t get what has changed about GM since they entered bankruptcy earlier this year. And I realize I don’t know all the subtle angles of every issue involved here… but something just doesn’t add up.