December 4, 2008 8:13 AM

Nationalize General Motors

General Motors says taxpayers must loan it $4 billion by the end of this month or it will die, and anticipates needing $18 billion over the next year. Some say let GM die. I am not in that camp, though I have never purchased a GM vehicle (though my mother's favorite car was a Buick).

I think that General Motors is among the most mismanaged of American companies, and has been for decades. It will be hard to turn it around, but the consequences of not doing so are enormous.

But there is utterly no reason to do a Paulson and simply give them the money to waste. The stock market value of General Motors is less than $3 billion - and they want to borrow $18 billion? They will not pay it back, which is why no commercial lender is stepping up to the plate.

We should put in the $4 billion as an equity investment and assume majority control of the company. Fire senior management, sell the jets or give them to Doctors without Borders, and do what is necessary to make cars people want that do not destroy the environment.