I have no idea why, in this "free market" economy of ours we just don't let any failing company FAIL. Auto companies, Banks, Amtrak. Just let a goddamn fucking FAILING company FAIL. Let Them FAIL !!!!!!!!!!!!!!!!!!!!!!
It's pretty clear that it's going to happen in the very near future anyway. At this point, I'd rather see them restructure and have the possibility of at least being viable, as opposed to eating up more of my tax dollars (and kids future tax dollars).
Free market is not a holy cow that must be adhered to at all costs. The main point is that the Free market says we will jump back to equilibrium, when in fact that is not true at all. Read Soros on the concept of reflextivity. His point is that as there are bubbles to the upside there are bubbles to the downside. Bubbles to the downside are problematic because they destroy everything in its path. Will things rebound? An example is the rust belt of America. The manufacturing industry was completely wiped out. Yes there were reasons such as inefficiency, etc. But what you have to accept as a counterpoint is that the free market basically decimated a complete industry in the rust belt. Soros is very much one for regulation, but not to the point of restriction. And there I completely agree. So how does this relate to GM? A plan needs to be created that will ensure its survival...
I don't agree with Amtrack being a failing company. It's a public service just like any municipal transit agency. What I dislike about Amtrack is the political influence which allows for some areas of the country to be better serviced than others. Also the direction from congress it should be profitable, which is a nearly impossible goal and just gives its detractors ample ammunition. Call it for what it is, a publicly funded national transit system. Get the politics out of it, the politics that result in nearly all funding going to the northeast corridor. And get engineers, not special interests, determine the best schedules and future expansions to serve the most number of people at the lowest cost possible; the greatest good for the most people. Something Amtrak currently fails miserably on. I also think that federal funding might be a mistake for Amtrak since it does not serve the entire country. A much fairer system would be a no-nonsense matching federal funding for operating expenses and capital expansion with the states.
That plan could be a chapter 11 restructuring which would not be letting GM fail but will put it on a much better footing. GM needs to change to be able to compete in its industry and a massive restructuring is the only way I can see it surviving without becoming a governent make work project. Edit* grammar
http://www.reuters.com/article/ousiv/idUSTRE51D28D20090214 GM, UAW talks break off; Chrysler talks stall
Does this imply they may actually file bankruptcy this time and the fucking UAW will be marched off to the concentration camps?
If they do I would expect the UAW to have a lot of influence over the restructuring. But, they also will have to take greater conssesions then they opposed durring these talks. I think the UAW thinks that they have the upperhand with the democrats in power but the ball is still in GM's court. Lets just see if they play it.