THE PROBLEM WITH THE BAILOUTS IS THEY WORKED TOO WELL:

GM, the nation's largest automaker, reported $2.9 billion in profit in the second quarter. That was more than double what it made a year ago. Strong sales in both the United States and China lifted sales and earnings. [...]

[E]ven if U.S. sales start to fall at GM, it is far better positioned than it was last decade, when uncompetitive labor contracts and excess factories resulted in deep losses and a bankruptcy. GM can be profitable even if sales dip dramatically from the current record levels.

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