My understanding of capitalism is that when a company does not provide products or services that the marketplace wants, it either changes what it produces/offers or it dies. Period. For the US Fed Gov to take even a stronger position in a company that has been floundering for years seems like a pretty bad investment. But what is even worse is that the US will borrow (or print) more money from somewhere to give to GM putting US citizens in a longer term debt position.
We here in Canada are no better off as I am sure we will be part of the GMAC solution or problem (depending on your perspective). Supporting companies that cannot withstand competition in the marketplace is simply bad business IMHO. Short term gain for long term pain is not they way out of our current crisis. We need to be thinking about "re-tooling" the employees and the manufacturing facilities to produce more meaningful and substantial human- benefiting products. Do we not have enough cars provided by other manufacturers?
I am sure that Adam Smith would not approve of such invasive actions into the activities of publicly traded companies.
