Quote from Cutten:
This is all a waste of time. GM, Ford, and Chrysler are ALL broke, and it is totally irrelevant what anyone thinks on the matter. They will not stay solvent. They will go into bankruptcy, probably merge leaving 2 or even 1 manufacturer, that will re-emerge from bankruptcy and consolidate a smaller US auto sector.
Nothing anyone on the planet does will alter this outcome.
Yep. Right on.
Building roads to nowhere doesn't work.
Neither does stock-piling cars that never get used.
People erroneously conclude that if GM engages in an activity that looks, feels and smells like "Work" - except nobody buys the end product - it really is WORK. Not so.
In order for Work, to "Work", somebody must be willing to exchange their labor to pay for the end product.
Otherwise, the economy is just a Communist Ponzi scheme that transfers wealth from citizens via debasement to Corporate Oligarchs who stock-pile toilet paper that never sees the shiny white gleam of a porcelain commode.
Money has to circulate from one productive endeavor to the next, in order for the economy to function.
When we start propping AutoMakers or Banks, or whoever, with endless Trillions to stay in business producing worthless shit nobody wants, we the taxpayer, bear the entire cost of that bailout through increased tax or decreased purchasing power.
When that happens, GDP contracts and we all lose. This is happening already and will only worsen our situation.
Shit like this is ridiculous.
Even all the bank talk of cataclysmic failure is bullshit. Nullify derivatives, nationalize bad mortgages, and its done.
This Country is really far gone.
