General Motors, in Today's News, 06.01.09

General Motors Files for Bankruptcy.  The cryptocracy's plan for General Motors is nothing short of audacious.  Cleave GM into (1) a "new GM" that is leaner, smaller, and free of debt and obligations, and into (2) an "old GM" that takes over all the brands that don't sell and all the benefit packages that GM has wanted to get rid of for decades.  The cryptocracy's dream is for new-GM to be quickly freed of all encumbrances via the bankruptcy proceedings by the end of summer, and then return as competitive money maker.  The old-GM is projected to stay in bankruptcy court for as much as ten years.  A decade of course gives the cryptocracy and the new managers time to attack the old-GM 'problems' in such a way that the managers don't have to confront all those affected at once.  

This is a fulfillment of one of the cryptocracy's biggest and best dreams.  All GM's problems, which the cryptocracy has been trying for decades to get the GM managers to deal with, are suddenly all taken care of. A new GM emerges and a legal framework has been established to deal with the billions of dollars of debt and employee benefits. Now government edicts from a bankruptcy court will do what the previous GM managers wouldn't or couldn't do.  And even better for the cryptocracy is the agreement of the United Auto Workers.  

It seems too good to be true, from the cryptocracy's point of view.  The big question is: will it work?  The cryptocracy almost alway over-reaches itself, and thereby causes it own debacle.  In this case, everything looks good on paper for them.  But, many powerful entities, court proceedings, mountains of debts and obligations, and tens of thousands of affected individuals and corporations are involved.  One can almost predict manifold unforeseen consequences that will gum up the works.

Plus, if the cryptocracy thinks that the only obstacle to selling GM brand cars is simply slimming down the company, boy are they in for shock. Public resistance to buying something that only has the government's endorsement going for it, will be hard to break down.  Especially given GM's record over the last couple of decades of producing inferior vehicles to Toyota, Honda and others.

The economic crisis produced by the cryptocracy has produced the conditions to attack many of the obstacles to their greater profits.  The GM bankruptcy has been one of their top priorities, now fulfilled.  For background commentary on this situation, go here.