GM bankruptcy tomorrow

In the "It's BFT" ('Bout Friggen' Time) category, GM is expected to file for bankruptcy tomorrow. I predicted their demise 2 years ago, as GM has the awesome track record of losing money 22 out of the last 23 years, incurring debt of more than $82 billion in the process. They have been technically insolvent for years, and bankruptcy was the ONLY option, despite misguided attempts by our government to bail GM out. Billions of dollars down the drain later, our government has finally come to the only conclusion they should have come to months ago. Prior to filing for bankruptcy, thousands have been laid off, dealerships closed, and vendors also going under. An earlier bankruptcy would have not only saved billions of lost taxpayer dollars, but would have reduced the blow of restructuring.

Of course, special interest groups (i.e. the UAW) opposed bankruptcy the whole way. As unpleasant as Chapter 11 is, believe it or not, this is the best thing for GM and US taxpayers. Hopefully, GM's remaining assets will be sold off and the US auto industry can reset and recover in a meaningful way, less burdened by GM's astronomical legacy costs. Capitalism works--we just have to get out of its way and let it sort itself out.