GM filed bankruptcy today. Finally the injuried lion in auto industry fell down for good. This is a very big surprise in our era. However, I feel the cause of its fall includes two things:
one is Greed, the other is Ignorance.
Greed from the not-ever-stop worker's union for benefits and securities that are more than twice of the other country in same sector. Also greed from the CEOs that enjoy the fat checks and bonus, plus private jet etc. It is also such CEOs playing good men to the demanding unions. Over generations, the burden just piles up enough to kill them.
Ignorance is about their inability to learn that new trend in compact cars and in oil saving device are the key buying factors in the new era. When the oil peaks over $147 per barrel, the lion suddenly found that it can't get enough food from its territory.
Chinese has a saying 富不過三代 (richness can go over 3rd generations), I think a big company, or even a nation cannot exceed 10 generation, if they do not cultivate the new revenue while continue the consumption of their assets.
We can see more examples if we open our eyes now.
6.1.09
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