Government Motors: Dave Ramsey Gets It Right; General Motors and the Government Central Planners Get It Wrong

The GM debacle should tell you why the economy is NOT "okay" (contrary to what you would belive from the coputer gamers on Wall Street acting on HYPE and momentum--truly the Stupidest People on Earth).


Dave Ramnsey got it right tody: Government Motors (formerly General Motors) should have filed for bankruptcy protection nine months or a year ago. Ramsey actually said GM should have filed six months ago, but an inetlligent mananagement (which GM has almost never had) would have done it even earlier. The earlier it was done--as Ramsey correctly said--the better chance GM would have had--because of all of the money that would have been SAVED by not continuing to lose money on every car GM sold.


The whole attempted bailout of GM has been a DISASTER, and continued to be a disaster. This blog (in foresight, as usual) told you that GM could not avoid bankruptchy. I will go further and say that the delayed bankruptcy filing, and government--central planning--contorl will DOOM GM. Now th egovernment may continue to pour in money--delaying the end. YOU (taxpayers) are laready going to pour in another 30 BILLION dollars, on top of what has already been "invested". Yet, one of the "prices" GM is apying for this is that the government is going to DEMAND that GM continue to make cars that people do not want (in coparison to the Japanese) at a price people do not want to pay. The government is even going to accelearate the process. I have already told you the the Chevrolet Volt is anoather DISASTER--a car no one is gong to want at a cost no one (except environmental nuts) is going to be willing to pay. That is if the car words at al as it is supposed to.



The GM debacle really is an example of what you get with cenral planning and government control. You get people competing for GOVENNMENT money, instead of competing in the free market and making rational economic decisions (like a MUCH earlier bankruptcy for GM).


Wh should GM get bailed out and others not? Because it is so "big"? now that is a rational policy--NOT.


What if GM had gone into bankruptcy EARLY, and divided into several different companies (for example, Saturn is "sold" by GM as a different, separate company. Why should it not be such a company. That is what we have needed all along. MORE auto companies, and SMALLER auto companies. Instead, our central planners seem determined to keep BIG--and even expand it. That includes both Big Government and Big Business.