Thursday, February 26, 2009

Bailout Fatigue

It looks like GM is asking for more bailout money. Whatever.

DETROIT -(Dow Jones)- General Motors Corp. (GM) on Thursday fleshed out the scale of its financial crisis, reporting a $9.6 billion loss for the fourth quarter and warning that auditors may question its viability.


GM executives will meet U.S. Treasury officials later Thursday in pursuit of up to $16.6 billion in additional aid that the company said earlier this month was essential to avoid a bankruptcy filing. GM is seeking concessions from workers, bondholders and other parties to qualify for the federal funding, along with at least $6 billion from overseas governments.

I find it difficult to get impassioned about this anymore. They've pounded us over the head with so many bailouts, I have no doubt they will pony up the $16.6 billion the GM wants. It's wrong, they should let it slide into bankruptcy. Ironically, that's the only way they can save it. They can re-invent something out of the ashes.

But whose listening? The Feds will keep throwing good money after bad. They will run a projected deficit of $1.5 trillion this year.

1 comment:

  1. Fatigue is right. The only happy note on this subject is watching Harper say no to the CBC.