Where Are You Joe DiMaggio?
On Monday one of the greatest American icons General Motors files for Ch. 11 bankruptcy. Since the 20's GM has been the largest auto company in the world, owned more than 50 percent of the American market and was the most recognizable and admired of companies. Until the past few years of course. For 80 years GM was a symbol of America and the sad truth is...it still is. For you see the thing no one wants to say out loud is GM has been for many years no longer able to make products of high enough quality to compete in the market. If we all did our due dilligence when car shopping we would all be driving Hondas and Toyotas.
Now GM is going to be kept alive by the government because it is believed that the economy could not stand the shock of the complete dissolution of GM. Of course this is based on the supposition that the new lean GM will be able to compete and survive and that this is not just putting off the inevitable. They have to at least pretend to believe this because after all they are spending tens if not hundreds of billions of dollars that belong to you and me.
There is not anything we can do about this but I wish at least there could be a lesson learned but I doubt if that is even the case. GM failed for the same reason our country is failing. Everyone involved took as much as they could for themselves until there was nothing left. Labor took and took, management failed spectacularly in their stewardship of the company and even Wall St. and the shareholders who will have lost everything didn't bother to look into what they were investing in. I still remember the ridiculous reasons used to justify buying GM stock. To me stockholders and bondholders all deserve to lose everything because that is the way the system is supposed to work. I would let GM disappear altogether except that would also hurt a lot of innocent people and might plunge us into a depression.
So I guess President Obama is doing the right thing. It's a sad day for America but it is nothing new really.