Posted on 11/17/2008 4:40:36 AM PST by Delacon
And the sooner they go Chapter 11, the better. If they wait until they’re out of cash, the judge may decide that it can’t be saved and order Chapter 7.
How long are these stupid hearings supposed to last, that start today? what are the true odds of the R’s having the NADS to say no and a bailout not passing?
It’s the Unions stupid! The bozos in DC do not give a hoot about the industry only the UAW. The Loonies want us to make electric golf carts for cars run by windmills. I think they are INSANE! Let them file Chap 11 and redo the union contracts at sane wages and terms. Car workers are not rocket scientists. But they pay em more.
I agree they should be forced to file.
But...I have a stupid, stupid question...
All these other things we bailed out...why didn’t they file reorganization too? Forgive me, but it is the dawning of a stupid, stupid question. AIG comes to mind we bailed them out to hold the status quo, instead of them doing the good business thing of reorganizing a long time ago.
Let me guess. Today’s daily bash GM thread?
I’ve read the earliest the vote can come up is Wednesday. Also that the dems need and cant get 12 republican votes. They’ve got 2 so far. Finally, with enough stink being made, Bush will probably veto if it comes to that.
Bankruptcy is the only solution that allows for a long-term future. A bailout is an aspirin for a patient that has terminal cancer.
You got it baby. Now go back outside and rejoin your picket line.
All they have to do is hold on till Jan 20th.
They may not have enough cash to last out December. Their quarterly reports have just sent their sales into the tank.
Why re-organize when there’s unlimited funds by the Government that allows business-as-usual?
Your question is not stupid. AIG got caught in the financial meltdown. It was part victim and part poor management. Forcing bankruptcy would not significantly alter their structure. GM, on the other hand, has outdated contracts with both unions and suppliers. While the current cash flow problem is at least partially caused by the financial meltdown, GM was doomed because of poor management decisions over the past 20 years.
thanks delacon...I worry that it could end up the same as the ridiculous friends-of-paulson bailout where the R’s initially rejected it and then turned around and supported it.
made me sick.
Look at the pre-crash market capitalization of AIG or Lehman, then look at the market capitalization of GM. I’m not in favor of any bailout, but if you go look at those two figures, that should help you understand why.
Lehman Brothers, at their peak right before the fall had a market cap of $33 billion. GM’s market cap is only $1.84 billion and hasn’t been much above that for a while.
AIG is also big part Henry Paulson’s charity case. The current CEO (or at the time of the bailout) was the only non govt person in the initial meeting to give $20b to AIG. Paulson is a scam artist.
My problem is more with the UAW and their cronies in Washington than it is with GM.
The unions gave hundreds of millions to the Obama campaign and other democrats.
The unions can use that kind of money to bail out their own companies, save their own (featherbedding) jobs.
I used to be a union guy - United Steelworkers. But the Democrats and their environmentalist massas destroyed the American Steel Industry.
I will as you go outside and warm up your rice burner.
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