Washington's "rescue" of GM began because GM is "too big to fail," and bankruptcy is (well, was) "unthinkable." Big? GM's market capitalization, $375.8 million on Wednesday, is about the size of California Pizza Kitchen's ($340 million) -- is it too big to fail? -- and one-eleventh that of Harley-Davidson ($4.3 billion). Fail? If GM has not already failed, New Coke was a success.
The administration is determined to prop up GM as a jobs program for the UAW and Midwestern states rich in electoral votes. This frenzy will intensify as the administration's decisions deepen the debacle.
Saturday, June 6, 2009
Government Motors
George Will nails the GM debacle. My favorite part:
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1 comments:
I'm certainly not against letting GM fail, but using market capitalization as the gauge of the size of GM is disengenuous. GM recently directly employed about 250,000 people. That's not counting all of the indirect jobs, like dealers, parts manufacturers, etc... California Pizza Kitchen employs about 14,000 and that does not include pepperoni makers.
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