As congress thinks about how to handle the auto makers crisis in Detroit, many have taken to trying to come up with a solution that might work. Remember what I said before. Congress is going to do something. So let's get the best deal we can for the majority of US taxpayers.
Los Angeles Times Pulitzer prize winning automobile writer Dan Neil has another idea. Nationalize General Motors. That's right. Nationalize General Motors.
Now before you assign the Times and their writers to some sort of left leaning conspiracy, check out what he says. Here is part of it.
To be clear, I mean that the federal government should buy GM; forget rathole loans or nonvoting equity shares. The company's stockholder value has been essentially wiped out. The company's enterprise value -- the lock, stock and forklift price -- is about $32 billion; its total debt is $45 billion. Let's make GM an offer.
If you feel the gall of free-market ideology rising, consider that the measures being bruited about as preconditions for a bailout -- firing GM's top management; forcing a bankruptcy-like renegotiation of contracts with the UAW, suppliers and dealers (it has too many); and creating a czar of product development to force the building of green cars -- are nationalization in all but name. I say embrace it. GM-USA.
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