Thursday, 5 February 2009

General Motors

General Motors hit a new closing low today. $2.72 Does anybody (besides the US government) expect this company to make it? Personally, i don't. The US automakers are a blackhole for the bailouts. The US government (by way of its tax-paying citizens) is giving money to incompetent managers expecting a different result. Emphasis on "expecting a different result". Why would you think giving the automakers a bailout is going to help them make cars that people actually want to buy. The long-term chart of GM says it all. Do you remember these companies, Skyline, Sunstrand, and Aileen? Exactly, neither do I. If the government does not nationalize the automakers, they will go the way of ALL extinct companies with incompetent management.

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