GM is about to die. So, it's asking for a bailout. According to Baris, it even took out advertising to rally citizen support to its bailout demands. What's wrong with this picture?
First, look at the chart below. GM stock peaked in the late 90's? Why? Is that because GM made cars that people craved? Or is it because of its effective manufacturing innovation? It's neither. It peaked because it made gas guzzling bling cars. And they sold well in the booming 90's.
I move on. So now, they are bankrupt. With about $50b of debt and huge payables. And they are asking for a bailout. If they get one, it will be a populist political decision, for future votes in some key swing states.
And shamelessly, they are lobbying for support, spending money on advertising. I protest as a taxpayer.
Let GM fail.