We may stop making cars in this country. Look at these numbers: GM has negative equity of $41B and lost $39B last year. The only reason the company isn't bankrupt is because the markets are trading on the assumption that GM's future cash flows will wipe out that $41B in a reasonable period of time. I'm not so sure. The stock is down 50% in the last two months, which would seem to indicate a dramatic loss in market confidence. Ford isn't much better. It is approaching penny stock territory at $4.95 and is off 40% in the same period.
GM is teetering, folks. What will happen if those 266,000 jobs go away? You think the good people of Michigan will vote Republican? Maybe, maybe not. You can be damn sure the Bush braintrust (and the wimpy Democratic Congress) will pump yet another $100B of our hard-earned tax dollars to prop up another failed business. And we'll be drilling for oil in the Rose Garden.
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