Spot on. Legacy costs are a big part of the difference between imports and domestics. The lower the number of unit sales you can spread the lagacy costs over the more you have to drain cash reserves.

Pensions for incoming salaried workers at GM went away some time ago. So have pensions for UAW new hires, as it's much more a 401K deal.

At one time, health care and retirement security were considered perks for taking on a certain career with a certain company.

It then became much of the norm in some types of businesses.

Enter the global economy...
When you compete with folks who would laugh incredulously that such things can even be dreamed of, much less negotiated to, some realities will be traded into for the sake of the short run.

I am amused that folks are calling Mr. Madoff the purveyor of the largest Ponzi scheme ever attempted.

Social Security will likely dwarf any such notions. It is, by definition, a Ponzi scheme. Believe me, paying one payee of long standing with the money from a new participant, IS a Ponzi scheme.

We all have some restructuring to do. The issues facing the big 3 are exactly those the US government is going to have to face.