Is the gov'ment really going to take over General Motors?

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.

If so, God help us all! I thought the government wasnt allowed to compete with private industry. Can you just imagine what that company will be like if its run by a bunch of politicians. Why dont they just let if go bankrupt and restructure? That has worked fine for most companies. They can get rid of their union contracts (which are ridiculous) and get rid of their debt and become competitive again. Worst case they go completely bankrupt and some one buys up the assets and starts a new company. Isnt that how it is supposed to work in a free market economy?

Can you imagine what it will be like? It will bleed money, make even crappier cars that nobody wants based on some green agenda that nobody cares about. The service will suck because it will just be a bunch of government workers standing around watching one guy work, and they will all have an attitude problem.

If you are Ford how are you going to compete when your competitor can just loose money left and right because they own the printing presses?

Why would the government want to run a car company, or even think they could succeed at it?

[edit on 29-4-2009 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 saw something similar in the local newspaper, so I'd guess they're definitely considering it. I can understand why they want to protect people's jobs, but is shoveling all that money into a failing company really worth it?

If the U.S does take possession of GM I will bet you that the U.S government will in turn sell it to China within 5 years .

reply to post by Max_TO


Sell it to China. Heck they will probably give it to China. It would be kinda like a weaky special. Buy 500 billion of our worthless debt and we will throw in GM for free. Though, it would be kinda funny to watch the UAW work for the Chinese.

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'm nearly certain that it would be a military takeover, officially or unofficially. The "Big Three" reportedly receive more federal R&D funding than NASA, with General Motors being a cornerstone of the military-industrial complex. With two wars in progress, GM may be one of the few companies that is genuinely too important to fail. Just look at who produces the Hummer.

I haven't heard anything about this rumor, but I'll see if I can find anything.



[edit on 1-5-2009 by theWCH]

Originally posted by justsomeboreddude

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.

uk.reuters.com...

Those are only the most recent observations.

By lending money to GM and Chrysler, the government has attached conditions under which they must operate. Chrysler was forced into bkcy today by govt. deadlines and mandates. GM had its CEO fired by Obama. It, too, faces deadlines and mandates or Obama-forced bkcy.

BofA and its CEO, Ken Lewis, were forced to merge with Merrill Lynch (shareholders fired Lewis today for his sellout), and the U.S. now has controlling interests in several TARP-funded banks and the world's largest insurer, AIG.

Read. Research. MSM will NOT report this for what it is. They will divert attention with false "crises." (Obama, Clinton and Emanuel see a "crisis" as an "opportunity" not to be wasted.)

Government merger with corporations is unprecedented in America and is, by definition, fascism.

Obama is catering to special interests to insure a solid constituency for his re-election.

Congrats to all Obama-ites on achieving "change" and "hope."

Soon, the socialistic promises of Obama's campaign and books will become reality.

Deny ignorance.

jw