Tuesday, November 18, 2008
GM and Ford are together worth all of $5.5 billion, according to the stock market today. What sense does it make to pour $25 billion into keeping them alive a little while longer? Now their execs are trying to scare us into helping, arguing that a collapse would be "catastrophic" for the economy. But as far as the market is concerned, it's already happened. The best solution would be to have some other auto company come in and buy their assets out of bankruptcy, then start up the plants with lower wages. That would make them instantly competitive.
Posted by Scott Grannis at 12:52 PM