Sunday, May 31, 2009

General Motors Bankruptcy - Lost Cause

I saw a few "round table" discussions on Sunday about the positives of the GM Bankruptcy of it being leaner, meaner, blah blah blah. I couldn't stand it. It's the same lame agenda of misinforming the public into a bull market so they can take advantage of the long term investors. Sure they might be competitive when they finally cut the expensive union benefits comparable to the Asian car makers to 30-45 dollars an hour but that's not news. Regulation always make a business less competitive because without regulation they can commit illegal activities that harm health at worst or make things cost more. Unions can obviously raise costs and make firing much difficult to the point of a very long and costly legal process.

I couldn't stomach watching when some panelist said GM would want the government out of the business so they can make better business choices. What? So GM fails and require a bailout but once they are bailed out the government should leave so they can make the same mistakes again for another bailout?!

I do not really see a solution however. Every time I look at the mileage of the new cars; I scoffed when a recent ad shows an impressive 36 miles an hour. My sedan in 1995 can easy do 25 miles. What's an extra 10 miles an hour when gas goes back to 4 or higher(like in Europe.). I think GM can only be saved when it can surpass 60 miles or at least beat the prius. I do not see electric cars to be much of a solution (though better) even if they can run at least 100 miles an hour per charge because those batteries are so expensive... They never tell you how many charges that will last or how their capacity might go down with use.

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