" That's just the funding schedule (that's how plans become "underfunded" or "overfunded"), but the "ownership" and obligations now lays with U.S., Canada and UAW."
A great way to understand it, but as if and when they go "public" they would have to pay this nut, instead I don't think that will change and we are the nuts...
"Now who, except for gamblers, would want to buy an IPO in that, unless that stock can be somehow divorced from GM liabilities, i.e. they still would be taxpayers' responsibility?
Which it the point I have been trying to make here on FR for a while. You are not getting just the Plants, Intellectual Property, etc. you are getting all the liabilities, i.e. the Pension and VEBA stuff hidden in the stock ownership. It is not like buying an IPO in a startup of a software company that has no legacy cost. And Obama, Wall St etc and their hand maidens on the various financial porn programs can't lipstick over that pig IMHO, you and I see these liabilities and anyone with a finance or modicum of accounting background can see it.
Unless they expect uncle sugar to own this forever and it is British Leyland on Steroids, or they do an IPO and Obama nationalizes the VEBA and their Pension.
Anyway I slice it, this thing doesn't get cut and let go until the Palin Administration.
I assume, at least I hope, that "British Leyland" scenario would be stopped after new Congress in January.
The other scenario then is more likely, but could become a part of hearings and necessary restructuring of government's "relationship" with other TBTF GSEs / GOEs, like Fannie and Freddie, and/or FHA.
Depends on how strong the leadership in Republican House and Republicans in the Senate will be. Bob Dole after 1994 revolution, made all kinds of deals with Clinton in 1995, before resigning, to undermine Gingrich and the House Republicans and get the accolades of the press for being a "grownup" so he could run for President on the "he can win" platform... Helped him about as much as it helped McCain who didn't understand or cared about the lesson.