Oct 29, 2008 -
Do You Need To Be Einstein?
You keep hearing things like "GM is too big to fail". Why?
Bankruptcy is something that happens to companies that need to resize and readjust to changing market realities. The North American automobile market has certainly changed and GM really hasn't done that great a job of adapting to the shifting landscape and that's why they find themselves in the spot they're in.
Airlines in bankruptcy kept flying and GM would keep building cars. Yes, there would be pain involved, but the option of "business as usual" doesn't seem viable. A bailout to try and maintain the status quo will just put off that pain.
It's so simple even Einstein could understand it.
