I wrote that GM should go into bankruptcy to get the opportunity to relieve them of the obligations they currently have. Even though this appears to be happening on Monday -- I'm writing this Sunday evening -- I don't like that fact that it is happening in the way that it is happening.
Normally, a company goes into bankruptcy based on the decision of the executive leaders, sometimes a company goes into bankruptcy because an investor or group of investors, forces the company to go into bankruptcy. And although the government is now part owner of GM, I still think it is wrong for the government to force GM into bankruptcy and under the conditions that it is doing so.
First, anyone who believes in the U.S. version of capitalism, even if they have problems with it, should really have a problem with bond holders and common stock holders being placed at the end of the line to get paid. Additionally, since when should the government force a company to give a large equity stake in the company to the employees or VERY worse yet, to major unions of the company?
Even though bankruptcy is the major "get out of financial jail" reset card, having the company work out its deals with its creditors, with a government judge overseeing it is one thing. Having THE GOVERNMENT force the deals is quite another and this IS a major blow against capitalism as the U.S. practices it.
But, once again, it's the executive board of GM that approved GM asking the government for the money and then accepting the money. Again, I remember a saying by some communist who said that communists didn't have to defeat capitalism, all they had to do was provide enough rope for the capitalists to buy so that they hang themselves.
That's how I see it.
[ UPDATE ]
I forget to mention something very important. When the government put the union and the government, itself, in front of the bond holders, the government, essentially, destroyed the underpinnings of the stock market.