"yes I agree but the money they have given banks mammoths the lunch money they gave GM. The banks are the culprits and its at GM expense. Shame on Wallstreet!!!"
Unfortunately the banking problem is only part of the problem. We have an ailing domestic auto industry, a real estate collapse (both commercial and residential), a burgeoning crisis developing in the credit world (especially with credit card companies) and a lack of consumer spending to thank here. GM put too much emphasis on those economic indicators when they mapped out their business plans. Big mistake, if you ask me.....
"I don't know what people are talking about GM has not lost money for 20 years."
Losing "money" and creating "value" are sometimes mutually exclusive of one another. GM was profitable several years ago thanks in large part to huge SUV sales. It doesn't mean their other divisions were profitable (Pontiac and Oldsmobile are good examples of this). What killed GM wasn't the demise of the SUV fad in the United States or the rapid rise in oil prices. What killed GM was poor management and a lop-sided powershift favoring the UAW. Any company can be profitable and still be poorly run. What test's a company's business plan is the ability to get through difficult times. The lack of any focus on innovation (the cancellation of the EV1), the overbloated line of products offered by several brands (GMC Envoy--and it's worthless cousins), infighting within the design center (bickering over the design of the 2010 Camaro), poor leadership, bending over backwards for the UAW and too much emphasis on cost cutting have all contributed to demise of GM. Such a demise was, once again, fueled by the decline of SUV resale values in the United States. The decline of GM's stock price simply proved that point.
"You know the saying"ye without sin cast the first stone"
Were all guilty, Unions, Government, Banks and corporate America."
As I alluded to in my long diatribe above, GM designed cars very few folks wanted (SSR, Aztek, Envoy, etc) and continued to make such cars as long as it satisfied both the shareholders and upper management (hence the "value" concept I was referring to). WE are the BLAME since the majority of us (I'm no exception here after buying a Tahoo in 2002) contributed to the "bigger is better" philosophy and took advantage of cheap interest rates and gas prices that helped propel GMAC/GM/Ford/Chrysler's enormous sales boom in the early part of the 21st century. Yes...you're ABSOLUTELY right. We are ALL to blame here.
"The new Great depression is coming!! Watch out!!"
Well...I forsee an economic storm brewing in the distance, but I'm not that pessimistic. But I tell you if the rumors of a pending commercial real estate collapse and the reset of those option arms for high end homes occurs next year come true---we are all going to be in a WORLD of hurt.
Sorry for the long winded response.
An Ordinarydude who can talk too much......
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