Quote:
Originally Posted by The Gaijin
George Will is right. The US government should not be running an auto company.
GM should declare bankrupcy and reorganize. Good-bye shareholder values and good bye board and top management.
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A GM bankruptcy filing, without financial support from the govt, will end in liquidation. The company will not be able to reorganize. That would effectively collapse the supplier base, which will take down Chrysler and Ford too.
If there is financial support from the govt, e.g. to enable GM to emerge from bankruptcy, the govt must have some say in how GM is run. That is simply political reality, and after being embarassed by the likes of AIG, the govt is even less likely to lend many billions of dollars without holding a leash on the company.
That's the real-world situation. George Will and other pundits have the luxury of writing OpEd pieces without being responsible for actually accomplishing anything.