As I have been researching GM's financial crises, I've learned a lot about how the financial industry is run. Finance is a hard subject to fully grasp but through my research I am learning a bit more everyday. Before I began to research I was under the impression that things didn't start going down hill for General Motors until the second half of 2008. Which is not the case at all.
I have found out that GM had been suffering laking sales and high debt long before 2008. From the turn of the millennium GM has been loosing profits. A lot of that was due to cheaper, more reliable cars coming from Japan. Japanese cars have taken a lot of sales away from all the American counter parts because Japanese cars tend to be made better. Also Japan has instituted many new technologies into their vehicles which has lured buyers away from American auto makers.
With the onset of import cars and GM unwillingness to give up it gas guzzling SUV's it started digging the whole it is in today long before six months ago. I am still unsure which scenario I support more, Obama bailing out the auto industry again, or letting them fail and restructure. As I keep researching I'm sure I'll make new opinions about the situation day to day.
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