More grim news for the auto industry coming out of Detroit.  it looks as though independent analysis of GM’s books is showing that the company is not likely to remain viable without billions more in government bailout money.  GM has long been gushing money but the situation is apparently so dire that bankruptcy is starting to look like a very possible outcome for the auto giant.  According to http://money.cnn.com/ GM has a number of problems contributing to it’s woes:

“GM’s continuing losses, negative net worth and an inability to generate cash for continued operations led the auditors to determine there was substantial doubt that the company can survive. GM warned last week it may not be able to able meet its auditors’ “going concern” requirements.”

GM has said that it would take around $100 billion to emerge from bankruptcy.  This, of course, is a gun at the head of the government.  What GM is in essence saying is that it is cheaper to give them $50 billion (or whatever the sum may be) now then $100 billion at some point down the road.  My advice: Let GM go.  I don’t like the idea of a corporation holding a gun at the head of my government and demanding my tax dollars to pay inflated union wages.  Hopefully GM will cut the fat and simply start to operate in an effective manner without anymore of your (or my) tax money.

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