Ding, Ding, Ding....
I have been saying something similar to this for a year.
Every Wonk on Wall St has been sayin' what a deal GM will be it will be debt free, stay away from Ford.
What are they smoking crack?
Look, an amateur Accounting type on this end with a couple of Acctg courses, I could see this! They have so much debt! You can't take money, buy stock and expect to get a "capital" stake in the company even though their a greart deal of tangible assets via plant and intellectual property etc. you can't expect to buy in with a Pension, a VEBA, and 2 Govt's to pay off.
This Violates the Accounting Equation and only despots like Castro and Stalin did it with the power of the gun to let them get away with it.
Even more so it violates Contract Law. Look how many got screwed. Bond Holders, Perferred and then Common Stock Holders all took it on the Chin. A new fangled Structured Bankruptcy and the Pension and UAW come to the front of the line. How is not Contract Law being destroyed with Obamacare? How about all those kids that lose their kids policies, the College kids loosing theirs and now us workers picking new plans or loosing them because we have been mandated a "new contract"? How are we not the Soviet Union or any other Iron Curtain puppet because of the president the dimunation of Contract Law that GM set? Would you hav done business with the USSR and it's states in the 60's and 70's? Where their Contracts honorable?
Am I the only Freeper that see's this?
No, I see it. A lot of us see it.
My response, after screaming against this bail out and being ignored along with so many other citizens, was to start my own boycott. I will NEVER buy a GM product, though they now are the only company to manufacture a column shift car. I will take the less comfort, straight-jacket feel front seats, and buy Ford. They are my auto industry heroes, everyone put something on the table in order to make them a viable and profitable company. GO FORD!
Losing.