Circuit City files for bankruptcy, GM teetering on the edge on clarkhoward.com

Just days ago, Clark shared a recap of his anger over Circuit City's 2007 decision to fire all their knowledgeable employees and managers in an effort to cut the company's bottom line.

The fruit of that decision has now been revealed: Circuit City has filed for bankruptcy. "The intelligent choice" was once the company's slogan. The intelligent choice? Get real, people.

Circuit City gift cards are still being honored -- for now. But as The Wall Street Journal points out, now is great time to use any Circuit City gift cards and take advantage of their special closing-out sales. Remember, a gift card is just a promise to honor your legal tender at a later date. But that's a bad bet now with retailers and restaurateurs failing.

Now let's turn to GM. Analysts have found that GM stock has sunk to the lowest level since WWII. Oh, how the mighty have fallen. GM's market value is back to where it was when we had just defeated the Nazis. The company's CEO now says they will need a bailout from the lame-duck Congress. They can't even survive until Obama gets in office.

As you may know, Clark is totally opposed to any bailout of the automakers. He believes it's bad for the country and bad for our image around the world. In capitalism, you're supposed to go bust if you can't make it. And if we bail the Big 3, where does it all end? Should the owner of the corner hardware store go to Washington looking for help because the housing market slowed and he or she can't compete with the big box stores?

Yes, Clark knows we opened up a Pandora's box with the Wall Street bailout, which he thought was a necessary evil. But it's a whole different issue when you're talking about bailing out individual corporations that have failed.

And much like the Circuit City gift card concern, if you buy a GM car and they go bust, will your warranty be any good? We've been getting so many calls about dealerships offering free tires for life and then going bust. Know that a promise only stands if the business is still around to honor it.

What others are saying

Nuke em again?
We dropped two atomic bombs on Japan and now a generation later they are nukin us!! They deserved it then, we deserve it now. The big 3 should fail. They are in trouble because their products are inferior, not because of the government or taxpayers.
By Frank @ 11/12/08 05:29:23 PMreport abuse
GM bailout
I think GM is primarily to blame for not being competitive in the current auto market. Their factories are behind in technology, unlike some of the Asian car manufacturers who have plants in the Southern U.S. whose technology is very advanced and can produce cars more efficiently. However, I understand that failure of the big 3 automakers would cause serious economic problems for us. One reason why some of the Asian car companies are not doing as bad as the American car companies is that GM spends a LOT of money on retirement and insurance for their retired employees. GM has way more people to support in retirement for their dedicated service than the Asian car companies!
By Kelly @ 11/12/08 05:01:21 PMreport abuse
GM Bailout
Why doesn't the company go after the past CEO's and their huge bonus packages to bail them out.....Obviously they didn't do their job.....
By Carol @ 11/12/08 04:09:26 PMreport abuse
GM history
Worked with them on a bankruptcy years back. They were harsh in dealing with the creditor when they were owed money. Plus they were about the most arrogant management group I have ever encountered. Why should they seek leniency when they provided none. You reap what they sow.

If their products were better the issue would not exist.
By Big Mac @ 11/12/08 12:48:47 PMreport abuse
Auto maker bailout
I was opposed to the mortgage bailout, a badly run business should fail.
I am for a bailout for the auto makers, we need the manufacturing ability for the coming war.
By Kenn Lantz @ 11/12/08 12:21:40 PMreport abuse
Let them go bankrupt!
I hate to say it but Ben Thompson on the Business Management site has an excellent arguement to let the Big 3 file for bankruptcy rather than bail them out. Seriously... check out the article. It is a quick read a makes a lot of sense.

http://www.busmanagement.com/currentissue/article.asp?art=275578&issue=287
By Jim @ 11/12/08 10:53:26 AMreport abuse
No more bailouts...
Clark: what 'makes it a different issue'? Bailing out Wall Street meant bailing out individual corporations... COMPANIES THAT SHOULD HAVE FAILED !!! The market would have hit its low and real reforms would be in place now. Necessity is the mother of reform.

~~~~~~~~~~~~~~~~~~~~~~~~~~
Yes, Clark knows we opened up a Pandora's box with the Wall Street bailout, which he thought was a necessary evil. But it's a whole different issue when you're talking about bailing out individual corporations that have failed.
By Newly Unemployed Paul @ 11/12/08 12:27:28 AMreport abuse
GM
It's hard to think that ole Bull Moose is having a hard time. Maybe they should let their crappy management go. After all, Any company that the worker feel like they need a union to protect them means that management has their head stuck up their A$$ for being wantabe dictators and do not have even basic leadership skills. Companies like that deserve harsh Unions to deal with. They asked for it by the treatment of the people who do the work while they sit in the AC thinking up way's to abuse someone. Seen it with my own two eyes, and heard the crap they were thinking of, had to walk away from a few job's due to ethics, wrong is just wrong, And I just will not put up with it.
By Grandpa Gene @ 11/11/08 11:50:40 PMreport abuse
Circuit City Gift Idea
Make your own Circuit City gift cards. Give them away and then complain to the gift recipients that you got ripped!
By Howard Clark @ 11/11/08 11:19:31 PMreport abuse
Bail out
I feel that we should bail out the automobile industry but we must address a better way of doing it. Thus far I have not heard anyone talking about the labor unions. I feel for America to be competitive we must play like the rest of the world. We need to stop filling the pockets of the greedy union leaders and the union mentality needs to end.
By Barbara @ 11/11/08 10:31:18 PMreport abuse
gm bailout
In response to B. chaplins's comment about GM, the "largest industry" is not going to fall because GM hasn't been the number one auto manufacturer for some time and their loss will just be someone else's gain. GM failed to provide quality products for decades and decided to churn out homogeneous junk that the American public stopped buying because they weren't built to last! The best thing for America is to have companies that are strong and will build lasting customer relationships and not companies that have become fat and lazy and have betrayed the public's trust by producing
second rate junk!
By shafaa @ 11/11/08 10:20:54 PMreport abuse
GM Bailout
Let the largest industry in the US fall. You think this economy is bad now, let them fall and see where your 401(k)goes. Thanks for supporting our country!
By B. Chaplin @ 11/11/08 10:12:53 PMreport abuse
We'll still have a US auto industry
Remember all the automakers that are primarily located in the South; that will persist. Let the bloated GM, Ford & Chryler fail & stop all the bailouts. The healthy companies can pick up the pieces
By Ben @ 11/11/08 08:59:43 PMreport abuse
GM Should Fail
GM is in the position they are in because of a crappy product, poor vision and bloated workforce. Let the Japanese win this one.
By patdesign @ 11/11/08 08:38:46 PMreport abuse
GM
I agree with Clark. Assume for a minute that the government, indeed, provides bailout to GM. Does GM have fuel efficient cars? NO. Can GM compete with Toyota? NO Am I ever going to buy a GM car? NO Then why waste money on a company that won't survive either way?
RJ
http://valuestockinvestors.blogspot.com/
By RJ @ 11/11/08 05:08:23 PMreport abuse
GM
The things that helped destroy GM were their dexcool antifreeze that turns to mud in a year and a half. Bad intake gaskets on there 90 thru mid 2000 cars. Their theftlock system that keeps you from starting the car so you have to go to the dealership and spend a fortune to get that fixed. Also if you had to change out your battery your radio would lock up and you would have to go to the dealer and pay to have your radio unlocked. Morons
By me @ 11/11/08 04:21:15 PMreport abuse
GM bailout
I agree with Clark. A business, especially one like GM should be able to evaluate future markets, and adjust their product accordingly. If they can't, why should we bail them out? My father was the head of chemical engineering at Inland for over 30 yrs, so we are a GM family to the core. However, if you cannot stay competative... well in this day and age - you'r quickly eliminated. Survival of the fitest.
By Jean Shiverdecker @ 11/11/08 03:47:19 PMreport abuse

Nuke em again?

We dropped two atomic bombs on Japan and now a generation later they are nukin us!! They deserved it then, we deserve it now. The big 3 should fail. They are in trouble because their products are inferior, not because of the government or taxpayers.

By Frank @ 11/12/08 05:29:23 PMreport abuse

GM bailout

I think GM is primarily to blame for not being competitive in the current auto market. Their factories are behind in technology, unlike some of the Asian car manufacturers who have plants in the Southern U.S. whose technology is very advanced and can produce cars more efficiently. However, I understand that failure of the big 3 automakers would cause serious economic problems for us. One reason why some of the Asian car companies are not doing as bad as the American car companies is that GM spends a LOT of money on retirement and insurance for their retired employees. GM has way more people to support in retirement for their dedicated service than the Asian car companies!

By Kelly @ 11/12/08 05:01:21 PMreport abuse

GM Bailout

Why doesn't the company go after the past CEO's and their huge bonus packages to bail them out.....Obviously they didn't do their job.....

By Carol @ 11/12/08 04:09:26 PMreport abuse

GM history

Worked with them on a bankruptcy years back. They were harsh in dealing with the creditor when they were owed money. Plus they were about the most arrogant management group I have ever encountered. Why should they seek leniency when they provided none. You reap what they sow.

If their products were better the issue would not exist.

By Big Mac @ 11/12/08 12:48:47 PMreport abuse

Auto maker bailout

I was opposed to the mortgage bailout, a badly run business should fail.
I am for a bailout for the auto makers, we need the manufacturing ability for the coming war.

By Kenn Lantz @ 11/12/08 12:21:40 PMreport abuse

Let them go bankrupt!

I hate to say it but Ben Thompson on the Business Management site has an excellent arguement to let the Big 3 file for bankruptcy rather than bail them out. Seriously... check out the article. It is a quick read a makes a lot of sense.

http://www.busmanagement.com/currentissue/article.asp?art=275578&issue=287

By Jim @ 11/12/08 10:53:26 AMreport abuse

No more bailouts...

Clark: what 'makes it a different issue'? Bailing out Wall Street meant bailing out individual corporations... COMPANIES THAT SHOULD HAVE FAILED !!! The market would have hit its low and real reforms would be in place now. Necessity is the mother of reform.

~~~~~~~~~~~~~~~~~~~~~~~~~~
Yes, Clark knows we opened up a Pandora's box with the Wall Street bailout, which he thought was a necessary evil. But it's a whole different issue when you're talking about bailing out individual corporations that have failed.

By Newly Unemployed Paul @ 11/12/08 12:27:28 AMreport abuse

It's hard to think that ole Bull Moose is having a hard time. Maybe they should let their crappy management go. After all, Any company that the worker feel like they need a union to protect them means that management has their head stuck up their A$$ for being wantabe dictators and do not have even basic leadership skills. Companies like that deserve harsh Unions to deal with. They asked for it by the treatment of the people who do the work while they sit in the AC thinking up way's to abuse someone. Seen it with my own two eyes, and heard the crap they were thinking of, had to walk away from a few job's due to ethics, wrong is just wrong, And I just will not put up with it.

By Grandpa Gene @ 11/11/08 11:50:40 PMreport abuse

Circuit City Gift Idea

Make your own Circuit City gift cards. Give them away and then complain to the gift recipients that you got ripped!

By Howard Clark @ 11/11/08 11:19:31 PMreport abuse

Bail out

I feel that we should bail out the automobile industry but we must address a better way of doing it. Thus far I have not heard anyone talking about the labor unions. I feel for America to be competitive we must play like the rest of the world. We need to stop filling the pockets of the greedy union leaders and the union mentality needs to end.

By Barbara @ 11/11/08 10:31:18 PMreport abuse

gm bailout

In response to B. chaplins's comment about GM, the "largest industry" is not going to fall because GM hasn't been the number one auto manufacturer for some time and their loss will just be someone else's gain. GM failed to provide quality products for decades and decided to churn out homogeneous junk that the American public stopped buying because they weren't built to last! The best thing for America is to have companies that are strong and will build lasting customer relationships and not companies that have become fat and lazy and have betrayed the public's trust by producing
second rate junk!

By shafaa @ 11/11/08 10:20:54 PMreport abuse

Let the largest industry in the US fall. You think this economy is bad now, let them fall and see where your 401(k)goes. Thanks for supporting our country!

By B. Chaplin @ 11/11/08 10:12:53 PMreport abuse

We'll still have a US auto industry

Remember all the automakers that are primarily located in the South; that will persist. Let the bloated GM, Ford & Chryler fail & stop all the bailouts. The healthy companies can pick up the pieces

By Ben @ 11/11/08 08:59:43 PMreport abuse

GM Should Fail

GM is in the position they are in because of a crappy product, poor vision and bloated workforce. Let the Japanese win this one.

By patdesign @ 11/11/08 08:38:46 PMreport abuse

I agree with Clark. Assume for a minute that the government, indeed, provides bailout to GM. Does GM have fuel efficient cars? NO. Can GM compete with Toyota? NO Am I ever going to buy a GM car? NO Then why waste money on a company that won't survive either way?
RJ
http://valuestockinvestors.blogspot.com/

By RJ @ 11/11/08 05:08:23 PMreport abuse

The things that helped destroy GM were their dexcool antifreeze that turns to mud in a year and a half. Bad intake gaskets on there 90 thru mid 2000 cars. Their theftlock system that keeps you from starting the car so you have to go to the dealership and spend a fortune to get that fixed. Also if you had to change out your battery your radio would lock up and you would have to go to the dealer and pay to have your radio unlocked. Morons

By me @ 11/11/08 04:21:15 PMreport abuse

I agree with Clark. A business, especially one like GM should be able to evaluate future markets, and adjust their product accordingly. If they can't, why should we bail them out? My father was the head of chemical engineering at Inland for over 30 yrs, so we are a GM family to the core. However, if you cannot stay competative... well in this day and age - you'r quickly eliminated. Survival of the fitest.

By Jean Shiverdecker @ 11/11/08 03:47:19 PMreport abuse

Listen Live:

Clark On Demand:

Clark's Advice:

Consumer Action Center:

Quick Links:

Clark Media:

Call The Show:

Nov 11, 2008 -- Circuit City files for bankruptcy, GM teetering on the edge

What others are saying