GM Has To Die

No, I don't make this statment lightly. This is a great US company, it employs tens of thousands of people, it buys parts and raw materials from companies which probably will go bankrupt too if GM fails. I even think that it's a good idea to help US auto makers.

But I'm absolutely against helping GM in its current form. Any help to this particular company should come with one condition: current management has to go, common stock is canceled and all current contract with UAW are voided. Sorry, commercial companies should not exist to support employees. That would be Soviet model. Companies exist to make profit. GM has to be restructured to make it profitable. There are possibly several different ways to accomplish that. One extreme is to declare bankruptcy and government help would go to accept pension liabilities and guarantee loans which financial arm of GM took. Or maybe government can also help for early retirement of some workers. Government can even throw big money to buy out most of the employees and pay for plant closure. Anything will be cheaper than giving money to Wagoner. He has to go.

Full disclosure: at the time of publication author did not have any positions in GM or any other auto company. Positions can change any time.