Saturday, June 6, 2009

GM vs California Pizza Kitchen

There is a good Op-Ed in the Washington Post by George Will criticizing the government bailout of GM. In it he points out that today the the market cap of GM is roughly equivalent to that of California Pizza Kitchen.

Washington's "rescue" of GM began because GM is "too big to fail," and bankruptcy is (well, was) "unthinkable." Big? GM's market capitalization, $375.8 million on Wednesday, is about the size of California Pizza Kitchen's ($340 million) -- is it too big to fail? -- and one-eleventh that of Harley-Davidson ($4.3 billion). Fail? If GM has not already failed, New Coke was a success.

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