Nationalizing General Motors

(10 am. – promoted by ek hornbeck)

It looks like GM is going to be nationalized, but with a twist. Because we can’t bear to say the S-word (Socialism) in America when the taxpayers start funding a private company, the incompetent management is likely to be retained and given more money to burn. Readers of the business pages may recall that the GM CEO was given a vote of confidence by the board just a few months ago, and so this bozo expects to retain control of a company that is too distressed even to file for bankruptcy protection.

The Wile E. Coyote moment never seems to come for incompetent US top managers. They continue to defy the laws of economic gravity because their spin control is so highly perfected that it functions as a levitation mechanism. I wonder how much longer the taxpayers will be willing to provide unlimited funding to companies led by idiots? Here are some practical measures the Obama administration should consider when it takes over a private company:

1. Conduct a thorough post-mortem on the management decisions leading to the business failure.

2. Remove all managers associated with poor decisions revealed in step 1.

3. Hire replacement managers with proven records of business turnaround execution.

4. Reclaim all past bonus compensation paid to managers associated with a failed company for the last five years.

5. Restructure the business model of the failed corporation to address shifting national priorities. (E.g., GM should start making rail cars and trolleys, in addition to fuel-efficient cars).

6. Introduce a high degree of transparency into the financial records and management deliberations of the nationalized company. All key decisions and their supporting documentation should be visible on the Internet. A taxpayer-funded company should be accountable to the taxpayers.

7. Put private citizens and worker representatives, with no connections to existing management, on the board of every taxpayer-funded company.


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    • Edger on November 11, 2008 at 19:38

    That would make far too much sense!

  1. None of the suggestions will work. It’s too late.

    This is a world wide depression brought on by corrupt American business practices and supported by the voting American public who prefer to be lied to because in fact, the American people by and large are LIARS.

    The people who represent the American people represent them accurately. The American people are by and large liars and corrupt with never ending greed.

    They ignore the “War” in Iraq that has been an Arab holocaust and focus on 3.000 American soldiers who are dead

    They ignore that the “war” is part of the reason we are having a worldwide depression with its impact on the economy and oil prices worldwide

    They vote for Barak Obama whose chief of Staff Rahm Emmanuel actually fought for the Israelis in the first gulf war and whose father was a…..TERRORIST with Irgun in the early days of the formation of the state of Israel which should never have formed.

    They vote for Barak Obama and other candidates who promote the theft of their own public money in the form of “bailouts”

    General Motors and the state of Michigan are considered Democratic and that is the reason Bush want’s them to fail and that’s the reason Obama wants to bail them out.

    And nobody is doing anything for anybody unless there is something in it for them RIGHT NOW!

    This is the land of GREED.  

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