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Obama Favors Bankruptcy for GM, Chrysler
WSJonline.com ^ | 03/30/09 | HENRY PULIZZI, JEFFREY MCCRACKEN, MONICA LANGLEY and JOHN D. STOLL

Posted on 03/30/2009 12:53:01 PM PDT by Big_Monkey

WASHINGTON— The Obama's administration's leading plan to fix General Motors Corp. and Chrysler LLC would use bankruptcy filings to purge the ailing companies of their biggest problems, including bondholder debt and retiree health-care costs, according to people familiar with the matter.

The move would in essence split both companies into their "good" and "bad" components. The government would like to see the "good" GM to be a standalone company, according to an administration official. The "good" Chrysler would be sold to Fiat SpA, assuming that deal is completed, this person said.

GM and Chrysler have had bankruptcy attorneys devising plans for such a

move in recent months.

President Barack Obama's task force has told both companies that the administration prefers this route as a way to reorganize the two auto makers, rather than the prolonged out-of-court process that has thus far frustrated administration officials.

GM looks increasingly like it will be forced into filing for bankruptcy protection, sometime in mid-to-late May, in a plan where the automaker breaks into two companies, the surviving entity a "new GM" that maintains key brands such as Chevy and Cadillac and some international units, say several people familiar with the situation.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Front Page News
KEYWORDS: automakers; bailout; bho44; gm; obama
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This doesn't make any sense. Why would Wagoner agree to step down if GM was just going to go ahead and file Bankruptcy?
1 posted on 03/30/2009 12:53:02 PM PDT by Big_Monkey
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To: Big_Monkey

Why would we bail them out to the tune of tens of billions of dollars if we are just going to let them go bankrupt, which is what should have happened in the first place.


2 posted on 03/30/2009 12:54:58 PM PDT by Blood of Tyrants (Socialism is the belief that most people are better off if everyone was equally poor and miserable.)
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To: PAR35; TigerLikesRooster; AndyJackson; Thane_Banquo; nicksaunt; MadLibDisease; happygrl; ...
I favor bankruptcy for the U.S. Government. Maybe liquidation, too.
3 posted on 03/30/2009 12:55:20 PM PDT by rabscuttle385 ("If this be treason, then make the most of it!" —Patrick Henry)
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To: Big_Monkey

Isn’t it obvious, Wagoner probably didn’t give enough money to the Obama campaign, and this is pay back........ :)


4 posted on 03/30/2009 12:55:36 PM PDT by JENINMO
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To: Blood of Tyrants; Big_Monkey
Why would we bail them out to the tune of tens of billions of dollars if we are just going to let them go bankrupt, which is what should have happened in the first place.

Because Obama, the Democrats, and their RINO cohorts think you, I, and every other U.S. taxpayer...are stupid.

5 posted on 03/30/2009 12:56:08 PM PDT by rabscuttle385 ("If this be treason, then make the most of it!" —Patrick Henry)
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To: Big_Monkey

So I guess that we the taxpayers just lost the billions we “invested” in the past months...? Oh well—I guess if any of these bozos had any skills they wouldn’t be in politics.


6 posted on 03/30/2009 12:56:35 PM PDT by randog (Tap into America!)
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To: Big_Monkey

Because the current government motors plan went over so well ... If there is one thing the ACTING president does, he listens to the media and it’s a big thumbs down. Remember during the campaign, the creepy talk about the ACTING president watching the media report on what he had just read from his teleprompter?

Would you buy a car from Government Motors.


7 posted on 03/30/2009 12:56:58 PM PDT by Tarpon (You abolish your responsibilities, your surrender your rights.)
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To: Big_Monkey

How does this benefit the UAW?

Follow the money, somehow, somewhere the union guys are the ones who will benefit from any decision coming from the Obama camp.


8 posted on 03/30/2009 12:57:23 PM PDT by Abathar (Proudly posting without reading the article carefully since 2004)
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To: rabscuttle385

Well, we know that Obama supporters are stupid.


9 posted on 03/30/2009 12:57:48 PM PDT by Blood of Tyrants (Socialism is the belief that most people are better off if everyone was equally poor and miserable.)
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To: rabscuttle385

>> Maybe liquidation, too.

I’m in favor of liquidating their asse s.


10 posted on 03/30/2009 12:58:10 PM PDT by Nervous Tick (Party? I don't have one anymore.)
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To: randog

The Obama administration will go down in history as the biggest swindle man has ever known.


11 posted on 03/30/2009 12:58:17 PM PDT by Crim
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To: Big_Monkey
The Obama's administration's leading plan to fix General Motors Corp. and Chrysler LLC would use bankruptcy filings to purge the ailing companies of their biggest problems, including bondholder debt and retiree health-care costs, according to people familiar with the matter.

There it is. Socialized medicine is part of the answer. If GM didn't have to provide medical coverage...blah, blah, blah. The retort, obviously is, you shouldn't be allowed to retire on OPM (other people's money) at age 55.

12 posted on 03/30/2009 12:58:32 PM PDT by Go Gordon
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To: JENINMO
I found this line in the article which is VERY telling...

"Mr. Wagoner was asked to step down on Friday by Steven Rattner, the investment banker picked last month by the administration to lead the Treasury Department's auto-industry task force

Who's Steven Rattner, you may ask yourself. Well, this is from his Wiki page...

He is married to Maureen White, the former National Finance Chair for the Democratic Party

Isn't that nice?

13 posted on 03/30/2009 12:58:39 PM PDT by Big_Monkey
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To: Big_Monkey

How, in the name of all that is American, can this be justified as government business?


14 posted on 03/30/2009 1:00:26 PM PDT by Helen
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To: Big_Monkey

What does this zero know about anything?!


15 posted on 03/30/2009 1:00:36 PM PDT by bethtopaz (www.rapturealert.com)
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To: Big_Monkey

Finally, I agree with Mr. Soetoro... which makes me wonder what’s not being said...


16 posted on 03/30/2009 1:01:09 PM PDT by AJ in NYC (Liberals are ill-mannered children)
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To: Big_Monkey

I wonder how nine-percent-nancy is going to take this:
= = =
December 02, 2008
Pelosi: Bankruptcy Not An Option
WASHINGTON — House Speaker Nancy Pelosi said today that she expects the federal government to intervene in the domestic audo industry’s request for cash, whether through legislation or an executive loan.

“I believe that intervention will happen,” Pelosi said during an afternoon press briefing. “I think it’s pretty clear that bankruptcy is not an option.”
= = =
Source:http://www.realclearpolitics.com/politics_nation/2008/12/pelosi_bankruptcy_not_an_optio.html


17 posted on 03/30/2009 1:01:49 PM PDT by kidd (Obama: The triumph of hope over evidence)
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To: Abathar

Not necessarily. The tree-huggers own him. The UAW is so last-century... /s


18 posted on 03/30/2009 1:01:58 PM PDT by OKSooner ("He's quite mad, you know." - Sean Connery to Honor Blackman in "Goldfinger".)
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To: Big_Monkey
1st off, Chrysler getting bought by Fiat has nothing to do with this, and second, any GM plan of splitting into different companies and blowing off the bondholders is a monumental mistake.
19 posted on 03/30/2009 1:02:12 PM PDT by bill1952 (Power is an illusion created between those with power - and those without)
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To: Big_Monkey

Cash in on the golden parachute before that deal is wiped out in bk?


20 posted on 03/30/2009 1:03:14 PM PDT by Chet 99
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