Professor Elam

One upon a time What was good for GM was good for America. At this moment, I suspect that is still true.

Cal Thomas

suggests that we slowly let GM and Chrysler go. I mentioned critical thinking and analysis in a recent blog post.  The companies that Cal mentions going out of business were frankly mere specs on the horizon as they met their demise. I can recall Studebaker closing its doors. The big dealer in Houston saw it coming and switched to Ford without missing a beat.  That will not be the case for a demise of Chrysler or GM today.  Here are the differences.

Unlike an airline, GM, at least, has a reach into thousands of locations in the US.  If an airline goes bust, a few gates become available at the airport. Your neighbor, the local Chevy mechanic is not laid off.

As GM and Chrysler are literally out of money, there will not be an easy way out. One day without more government loans, the money is gone and then

all the inventory on all lots decreases in value
customers are reluctant to buy those cars with little resale and questionable after the sale service

Dealers on the hook for mortgages at those dealerships, not to mention the floor plans for the inventory, are broke as are the debt holders.

Suppliers will probably go broke as they will not get paid from GM, then how will they supply Toyota et al?

By the way another subsidized agency raised prices 4.7% this month as their private competitors slashed employment and prices. No one is holding hearings on this money loser known as the US Post Office.

Lawyers will only clog and delay proceedings in a bankruptcy court. That is much more liable to be a Chapter 7, we are gone, than a Chapter 11, we are re organizing.

There is no one to take those dealerships and mechanics and parts folks in this slowdown.  Oh, GM sponsored programs at community colleges and high schools will also disappear.

The Democrat Party will certainly disaappoint the UAW that has supported them win or lose through every modern election.

We shall see. Losing Braniff and Eastern was not a big deal, losing GM all at once, well….