"Eisboch" wrote in message
...

wrote in message
t...
On Sat, 15 Nov 2008 14:00:46 +0000, Tom Francis - SWSports wrote:


My own feeling is that let 'em go. Do the pre-pack, restructure to a
smaller, leaner, less expensive operation, drop a number of lines that
make no sense (like Hummer) and start competing again as a more
efficient and cost effective company.

GM deserves to go down, but ... We are now spending $1 trillion to put
liquidity *and* confidence back in our markets. What does letting GM go
down do to that confidence? I don't see a choice. I don't like it, but
I think we have to do something to help GM.

And then Ford?
And Chrysler?
And Harley-Davidson
And American Express?
UPS?
Harry's General Store?

How and where do you draw the line?

You don't. You don't even go there. If there is no need for the services
they disappear. If a services gap is left, more profitable companies will
take their place. I expect Harley, Amex and UPS wills survive and perhaps
one Detroit auto maker.

Middle class is broke and the most effective solution has yet to be
explored.

Massively reduce government spending and size at all levels. Reduce taxes
leaving more money for middle class. Let interest rates float to market
rates to encourage solvency and debt reduction. Slowly remove interest
deductibility to encourage real wealth accumulation. Get states involved in
this too. But it also means smaller and lean government.

Fiat debt life styles need to end. The US and now Canada, the credit is
bouncing. No cash, to bad so sad. The seller of services wants to be paid
honey.