One more joke Rick!

I know, Rick can´t say that G.M. will face bankruptcy unless it gets that so needed money from the US government. Mr. Wagoner was self assuring on CNBC ´s interview with Phil LeBeau telling him that G.M. does not think about going bankrupt, the country can´t allow that to happen.

The US should not allow that to happen, that is true. When Lehman Brothers was left to the sharks the spiral of chaos unfolded much faster than anyone had anticipated. On the other hand I always thought that Mr. Wagoner was a lousy CEO. G.M. has been losing ground for several years now, it changed its big monster cars years after Toyota was enjoying a PR success called Prius.

I don´t know much about mechanics, but as a consumer I can feel the engine´s power and gas consumption, even when I do not understand the specifics. With this in mind Asian cars like Hyundai, Toyota or Honda give me the sense that they are more fuel efficient, have more power and are more comfortable. I would rather buy any of them than any of the G.M. brand.

Talks with Chrysler were fine now that we are facing recession. Talking about not getting a deal while your stock it’s at $4.36 is just stupid. If there is a lesson out of another lousy CEO like Jerry Yang is that you have to do what is best regardless of what your feelings are.
Mr. Yang rejected a $44.6 billion takeover by Microsoft back in February, instead he went to Google to cross a deal in advertising. Google backed off that deal facing possible inquiries of monopoly leaving Yahoo with a $12.2 a share as on Friday.
Microsoft´s proposal was for $31 per share, you know a bad move when you see it.

This could make G.M. a possible candidate for chapter 11, burning roughly $2.3 billion a month on Q3 it faces a huge liquidity problem as soon as January. Even with $15.2 billion in “available liquidity” it cannot risk to get to its minimum needs to get cash infusion. That is when Rick needs to run to Capitol Hill to beg for some money.

A bankrupt G.M. won´t be good for anyone being the same case as AIG. This confronts those two face phony Republicans that claim a free market wonder, just to bail out almost every big player in the American economy.

My concern does not lie on G.M.´s future, it goes to the fact that Rick Wagoner is just inept. If you hear him claim that G.M. needs around $11 to $14 billion minimum to operate and it has roughly $15.2 billion on cash liquidity, burning around $2.3 billion a month, then you now if has less than 2 more months until if goes below its minimum level.

Maybe it is time to show the exit door to Mr. Wagoner and teach an important lesson to stock holders, hey! fire the big boss before he brings down the company, do not reward him with millions of dollars on bonuses, do not give them a second chance.

To all those free market lovers, please accept the fact that free market does work but letting it be “free” could destroy the world economy as we know it. Rick Wagoner was defending that bail out of the auto industry saying that the domino effect that G.M. could cause if it goes out of business could prove devastating to the entire economy. If you are a free market pundit you may feel comfortable stating that AIG should be on chapter 11 with Lehman Brothers, Wachovia, IndyMac, Meryl Lynch, G.M., Ford, maybe Chrysler and Freddie and Fannie.

If that is the case then our current economic situation will be catastrophic, yes the world would have learn its lesson and we may waking up someday in the long future with a much stronger system, but for many years we could have suffered tremendous devastation in every corner of our economy.

When Mr. Wagoner says that in difficult times policymakers need to be ahead of the problems instead of reacting to the problems, it sound as if he never was told that the price of oil was jumping and people were looking for fuel efficient vehicles. He is talking about his own mistake for years, he is telling policymakers not to do what he did, making it sound as if he never crossed that path.

Do not react, that is a huge lesson. About 240000 jobs were lost this past month, maybe it is time for Rick Wagoner to be part of that statistic.