The government should let GM run out of money, then step in and facilitate a humane a liquidation as possible. They should try to figure out a way to find a good home at Chrysler or Ford for any product lines that are still profitable. Try to keep at least a chunk of the jobs alive.
Bailing out GM would only hurt the other 2 makers. Why should they have to compete against a subsidized organization? Maybe they're best chance for survival is the elimination of GM.
GMs biggest problem seems to be that they are just a poorly run company. Who cares if their cars are crappy, they are still selling lots of cars. They just aren't making any money selling them. From what I've heard, I'm not sure any levels of sales would propel them to profitability. If there is no opportunity for the company to have operating revenue that exceeds their expenses, why should the government prop them up? I think I've heard they lose $10,000 for every car sold. If so, they aren't even in the realm of ever being profitable, and giving money to them is just welfare to everyone it goes to.
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