Quote:
Originally Posted by 2010-1SS-IBM
You assume they would have crashed without government aid, and also assume that crash would have affected the entire country. Here's my counter assumption; they would have been bought voluntarily by investors, and the new investors would have taken on the risk of getting GM solvent (and making any profits) without risking public funds. Without having to bailout GM, the government deficit wouldn't be as high as it is now, and the government chatter about raising taxes next year (or whenever) wouldn't be as much as it is now.
See how much better that is?
|
If investors were willing or able to put billions required into GM, they would have done so in the fall of 2008. They didn't.
It was two sides of the same coin. Individuals couldn't get loans to buy cars, and GM couldn't get loans to keep building cars. Why? Because investors were tightening up their own lending policies at the time.