The Very Rich Hours of the Lambrights

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New?

July 11th, 2009 · No Comments

Interesting article in the NY Times about the “new” GM.  The “new” corporation is emerging from bankruptcy and everyone is excited about the direction the giant automaker is going.  I have to say that I’m skeptical and a bit troubled by this whole thing.  GM was allowed to sell all it’s valuable assets to a “new” GM while it’s old liabilities stayed with the “old” GM that that will continue to go through bankruptcy.  Creditors of the “old” GM will likely get very little, while those of the “new” GM will probably do alright.  Since when is this how it works?  We didn’t force the banks to go through this kind of process; we just shoveled obscene amounts of taxpayer money at them so they could keep up their old, criminal tricks.

Not that this new approach is much better.  Pardon me for saying that it doesn’t take a Harvard MBA to resurrect a corporation that is allowed to cherry-pick the assets and liabilities it keeps.  Wish someone would let me do that.  I’ll keep the car loan and the mortgage, please.  You can take the credit card debt.

What really troubles me is that the liabilities that the “new” GM is shedding include a ton of lawsuits and settlements from consumers who got hurt in defective GM cars.  Looks like they are just going to lose.  That is seriously wrong.

Tags: News

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