The Pontiac Aztek

From Wikipedia: The Pontiac Aztek is a mid-size crossover SUV that was produced by the General Motors marque Pontiac from the 2001 model year to the 2005 model year. The Aztek was mostly noteworthy for its exterior styling, for which it has been voted the ugliest car in the world by a British newspaper.

The day GM died? When this clusterfuck was launched. Good luck "New GM".

Why Bailout GM?

I started writing a post on the purpose and goals of the GM bailout. While researching, I realized Robert Reich (former Democratic Secretary of Labor) had covered most of what I wanted to say in this May 31, 2009 Financial Times article.

This isn't about saving jobs, creating a better company, or a better industry; it's all about postponing the inevitable while appeasing the union and effected local interests. And the money we are spending will eventually be re-spent on unemployment benefits, retraining, etc. so this is money poorly spent.

I'll add one point that wasn't explicitly made in the article. These loans or bridge-loans are not loans. There are no interest rates attached, no repayment timing or structure, and no end date to repayment. This doesn't prove, but suggests as Prime Minister Harper let slip, that this money is not expected to be repaid.

From Wikipedia: Robert Bernard Reich is an American politician, academic, writer, and political commentator. He served as the twenty-second United States Secretary of Labor under President Bill Clinton, from 1993 to 1997. In 2008, Time Magazine named him one of the Ten Most Successful Cabinet Members of the century, and The Wall Street Journal placed him among America's Top Ten Business Thinkers. On November 7, 2008, he was selected by President-elect Barack Obama to be a member of the President-elect's economic transition advisory board.

GM Fell Down a Well

“What’s that boy?”

“Woof.”

“Jimmy fell down the well?

“WOOF! Woof woof.”

“GM lost $88B since 2005 and needs our help because with their bond rating is one-step away from default, no non-lobotomized person, credit crisis or not, would lend them anymore money and they’ve already burnt through something like $22B in the first 5-months of 2009?”

“Woof.”

“What’s that about the media and market capitalization? Comparing GM to Honda and the S&P 500 since 1978 points to a long-term deterioration of GM’s value as compared to the ‘party line’ about the current credit crisis, higher oil prices and lower sales are the cause of the current problem?


“Woof, woof!”

“What? If you add up the dollars spent and committed so far by the U.S. and Canadian governments, money to GMAC, and GM’s share of the original $25B ‘loan’ promised by Congress last year to update old factories, the ‘loan’ will be closer to $90B which is approximately the same amount as the GDP of Iraq, Vietnam, or Morocco and more than the GDP of 119 counties in the world seems obscene to you?”

“Woof.”

“Go get my check book. Good boy.”