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Originally posted by justsomeboreddude
One more thing. If the gov'ment does take it over maybe they should let the military run it. They are the only part of the government that can seem to accomplish anything.
I have heard on the radio and tv that the government is planning on taking a majority stake in GM, and that they plan to run this. I have searched on the web but dont really find anything but speculation this may happen. Has the government said somewhere that they are going to take over and run GM.
Why would the government want to run a car company, or even think they could succeed at it?
By seeking to dictate terms to secured creditors of Chrysler and General Motors (GM.N) as the automakers struggle to win further aid by cutting debt and costs, the U.S. government has entered uncharted waters that some find unsettling.
Inserting itself into a private process, some see the government as tipping the scales against Wall Street investors in favour of political considerations.
"This sets a lousy precedent for all other industries," said David Littmann, senior economist at nonpartisan think tank The Mackinac Centre for Public Policy. "This is the politics of re-election rather than the economics of excellence where those with invested capital see it expropriated in favour of vested interests."
Those "vested interests" are the unions that campaigned to elect U.S. President Barack Obama, Littmann added.
"To say it's unusual is an understatement -- it's unprecedented," said Norman Kinel, a New York-based partner at law firm Duval & Stachenfeld. "The government doesn't ever get involved in this way."
Dan Seiver, a finance professor at San Diego State University, said that as some of the automakers' creditors have received bailout money from the government they may be forced to "ride herd over other lenders" to get a deal done.
"We're in a new era where the government is calling a bunch of shots," Seiver added.