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Market forces at work

Market forces at work

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Wacko
GM needs another $5billion if they're going to survive.

http://www.dailytech.com/article.aspx?newsid=14270

Now, I'm not an economics expert, but isn't this just market forces at work? If there's dropping demand for what GM is selling, then how will more money help?

For a country that prides itself on being Capitalist and a free market economy, America does a fair bit of subsidizing of items that cannot compete in a free market.
  • Yeah I thought about that. The problem is who's to say GM won't have the same problem once they burn through the extra money? The assumption there is that GM will eventually succeed.

    But I agree that that many newly unemployed would be bad.
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