Today's GM Headlines -
GM ponders future as deal fails
General Motors' battle to avoid bankruptcy suffers a blow as bondholders reject a key part of the carmaker's restructuring plan.
General Motors and the US Treasury improve an offer to GM's bondholders, as they prepare for bankruptcy protection.
Analysis
This is a difficult time for one of the most recognized US brand, General Motors. The demise of GM can be seen as history laying judgment upon the liberal free market economics. It would seem that the lessons learned by many South American countries about American style economics were interpreted as isolated events.
GMs demise does have a silver lining for some investors, for example Fiat and Canadian firm Magna who are bidding to take over GM's European brand Opel.
What does elections have to do with it? In my opinion not very much, but many publishers including the BBC spin governments involvement as a need to secure jobs and votes. The significance of GMs failure cannot be fully understood in this climate. The size and repercussions of economic failure on such a scale with hundreds of thousands of factory workers affected reminds me of Communist based economics or supply notwithstanding demand. It surprises me that the news outlets are only concerned with jobs, not whether neo-GM will have anything to sell. Is this carrying on business as usual? Should there be discussion on what a post GM world should look like. Why are we so transfixed on failed economic models?
