Many years ago when I was still in college, I somehow managed to amass a few dollars and decided to invest in the stock market for the first time. I bought shares of General Motors and over the years continued to buy more with dividends. I never sold a share and hold it to this day, although more for sentimental value than financial value since the stock is virtually worthless.

For decades, the company has been poorly run with countless bad decisions stemming from an attitude of superiority and arrogance. I stood by helpless to do anything other than write letters to management which were ignored or answered with a form letter. Admittedly, they made money for the stockholders, not because of any great business acumen, but rather due to a growing economy and a historical control of the U.S. automobile market. For years, GM and the other U.S. automakers decided what they wanted to build and then spent a fortune in advertising convincing car buyers they wanted to buy Detroit's production. The companies made money in good times not because of brilliant decisions but because they had no competition. Further, the unions demanded compensation far in excess of any productivity as they, too, got into car buyers' pockets. It was a nice gravy train for the companies and workers, all at the expense of those of us who had little choice in the market.

This gradually began to change as the inefficient practices and excess profits attracted foreign cars into the U.S. market. The market share of U.S. manufacturers steadily declined as European and Pacific rim carmakers responded to the desires of Americans to have reliable, fuel-efficient cars. And how did the U.S. carmakers respond? In 1993, they went to Congress and asked for a tariff on foreign cars to reduce competition.

As long as 15 years ago, U.S. manufacturers were asking the government to help them out. They didn't get the tariff but they did get a great economy in the '90's that pumped up demand. They continued with business as usual and made money in spite of poor business practices. A low unemployment rate coupled with a growing economy and rising incomes can mask a wealth of problems.

The cavalier attitude of the U.S. carmakers during this period is breathtaking. In the face of a falling market share and profit margins below their foreign competition, they continued to grant excessive compensation increases to employees and ignore consumers' desires. Now, all of those chickens have come home and we are treated to the spectacle of GM, Ford and Chrysler once again asking for the government's help.

Note, these are the same companies that have resisted higher fuel standards, emission controls and even airbags as unnecessary government intrusions. I guess consistency isn't taught in carmaking class. Maybe they should have paid more attention in another class: economics.

What we're seeing is economics in action. The study of markets teaches that a firm can't continue to be mismanaged in the long run without getting into trouble. The market rewards efficiency and punishes inefficiency, and Detroit is getting punished for decades of inefficiency.

So, should we give them $30 billion? For what? To continue to throw it away paying for foolish, past decisions? Nope. My company, GM, is so far gone it can't be saved in its present form. A chapter 11 bankruptcy which allows the company to continue to exist but come up with a new plan is its only hope. GM could force a new, reasonable agreement on its workers, a different set of pension obligations and completely altered arrangements with dealers. All of these groups would be hurt but here's where government should legitimately help. A program to help retrain or relocate workers and give them expanded health care would be necessary. Pensions are already partially protected by the government but Congress would have to spend more. My stock has become worthless and nothing will save that. A lot of people would be hurt by the bankruptcy, and we need government to help them. But government can't eliminate all hurt, just reduce it.

A market is callous, and carmakers long ignored its ruthlessness with disastrous consequences. It would be a mistake to give them any taxpayer money.