Bill Ackman weighs in on the wreckage of the U.S. car industry:
“It has been hamstrung for years because it has too much debt and it has contracts that are uneconomic,” Ackman, manager of the Pershing Square Capital Management LP hedge fund in New York, said on the Charlie Rose show yesterday. “The way to solve that problem is not to lend more money. They should do prepackaged bankruptcy.”…
“The ‘bankruptcy’ word scares people but it’s simply a system,” said Ackman, who said he doesn’t have a position in GM securities…
The government should ensure GM uses funds to retrain workers and shouldn’t put money into the company if it will only be used to service existing debt, Ackman said.
“The welders at GM could help on the infrastructure of the country,” Ackman said. “That’s a much better use of taxpayer money.”
Meanwhile, GM continues its PR campaign of pleading and terror.
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