Re:Ask YC: To save GM or not?
by DanielBMarkham on Thursday November 13, 2008 @03:47PM
(#363570)
Three points:
1) It's not either/or. GM can declare bankruptcy, renegotiate their debts and expenses, ditch ideas that are not working, and come back as a smaller, kick-butt company.
2) If you go here then it's just a big political hand-out for whoever has the most contacts. It's not a financial bailout anymore. Be honest about it, and expect a lot more applicants.
3) So you spend our money to bail out some business or sector. What is the evidence that the underlying problem has been fixed? I know Congress can attach a lot of feel-good riders onto the deal, like more green energy and better employee benefits, but what assurance is that? Are we fixing the problem, or just putting a band-aid on a gaping wound? 'Cause I got a funny feeling that if you write them a check this year, they're going to be back in a year or two.
They're an important company, and I hate to see them go. But I hate even more the idea that some companies are "too big to fail". Times change. If GM is able to change with them, then that's great. If not, then that sucks. But we don't have buggy-whip manufacturers anymore -- those days are gone. And perhaps the days of super-big American manufacturing companies are going away too. Maybe not. I don't know. But I know you can't force it to work if it's not going to.
1) It's not either/or. GM can declare bankruptcy, renegotiate their debts and expenses, ditch ideas that are not working, and come back as a smaller, kick-butt company.
2) If you go here then it's just a big political hand-out for whoever has the most contacts. It's not a financial bailout anymore. Be honest about it, and expect a lot more applicants.
3) So you spend our money to bail out some business or sector. What is the evidence that the underlying problem has been fixed? I know Congress can attach a lot of feel-good riders onto the deal, like more green energy and better employee benefits, but what assurance is that? Are we fixing the problem, or just putting a band-aid on a gaping wound? 'Cause I got a funny feeling that if you write them a check this year, they're going to be back in a year or two.
They're an important company, and I hate to see them go. But I hate even more the idea that some companies are "too big to fail". Times change. If GM is able to change with them, then that's great. If not, then that sucks. But we don't have buggy-whip manufacturers anymore -- those days are gone. And perhaps the days of super-big American manufacturing companies are going away too. Maybe not. I don't know. But I know you can't force it to work if it's not going to.