GM should be broken up and sold to any buyer who wants it. All assets should be turned over the the Pension Benefit Guaranty Corp. to cover the costs of taking over GM’s responsibilities.
“We take our obligations very seriously, managing our plans with integrity and prudence even during difficult times,” a Ford spokesman said. Chrysler declined to comment and GM couldn’t be reached. Each company has said a bankruptcy filing would be prohibitively expensive and could threaten car sales. However, GM and Chrysler have said they could run short of cash in coming months, barring federal aid.
The Pension Benefit Guaranty Corp. steps in to take over failed pension plans. After studying updated pension information for the auto makers in recent weeks, the agency has grown increasingly concerned that it might have to cover billions of dollars in pensions if one or more of the car companies should file for bankruptcy-court protection.
The agency’s letters were sent as the auto makers scramble to assemble blueprints for congressional leaders demanding viable business plans in exchange for a $25 billion bailout.
When writng books about the “fall” of Western Civilization (worry not, it will rise again eventually), future analysts and historians will be able to point to the “Pension” as one of the root causes of decline. As our society was able to throw off so much ‘value’ (in terms of lifestyle choices, baubles, and geegaws as well as food and shelter), the society became enamored with the absurd notion that its most productive citizen could quit at age 55 and live of the next generation(s). (which they then, in their laziness and narcissism, decided not to even produce)
This worked for a while, but as millions of public employee unions decided to go along for the ride, and increasingly disconnected soccer moms rubber stamped every increase in a bloated public bureaucracy that was failing miserably (education, fire, police, municipal, – and coming soon! – daycare!) , the system eventually failed.
With the rich lacking all political will to challenge the “tax eaters”, and the corporate chieftans shilling for “free healthcare” instead of challenging the unproductive “zeitgeist” of the times, each layer of burden laid upon the productive induced them to become less productive. EVERYONE wanted their “bailout.”
It was a nice idea, but the system can’t / couldn’t withstand the effects of human nature, which even Barack Obama will not be able to change.
Pensions and retirement that rely on anything other than your own efforts ought to be outlawed.