How would a company like GM be close to bankruptcy? -

Why do they invest all their dollars in the market so that when crisis happens they have no cash!!! What kind of market strategists they have? GM owns percentages of every other auto companies around the world and how the hell it is not able to survive from the money that it earns from other auto makers like BMW...? Please somebody enlighten me. Thanks|::::|It is extremely complex. So is building a car. GM is just like the U.S. It has healthcare problems just like the US has Medicare problems. It has pension problems just like the US has Social Security problems. So you don t have to look any further than the U.S. and its government to know the issues at GM. Especially since GM has aligned itself with the government as a means to make it viable long term. GM does the same thing as the government, usually by the governments request or demand, like making weapons when we are at war like WWII or lowering borrowing cost (zero percent financing) to help the economy in the midst of a 9/11. Complacancy, over-dependence, apathy, arogance are other things that plague GM and the U.S. The model of whats good for GM is good for the country and vice versa have been a GM model. GM has helped out the country in many ways. But now, in the midst of needing the country now, it is turning its back on GM. Hopefully, the prophecy of when GM goes so does the country doesn t come true but everything points to it as being true.|::::|For years they have borrowed money to support their operations, with the hope that someday things will recover. But things just keep getting worse. Their cash flow from operations was $166B for the past 12 months, but the operating costs were $185B. If costs can be brought in line, the company is viable, but only through debt discharge and cancellation of contracts can that occur. A bailout just prolongs the inevitable, because they ll just wait for good times to come round again. Management blames the credit markets for their current predicament, but they ve run a negative net income for years. Like the gambler that keeps feeding the slots, waiting for that one big payout.|::::|Poor business leaders (old boys network) make short term decisions that make them look good. They get big bonuses and then walk away when the chit hits the fan or beg governments for handouts to support a business model that does not work. They are willing to throw good money after bad to pursue the same crazy business plan. PS they spend $1 billion to design a new car. The Japanese do it for $50 million. Need I say more?