Posted on 12/02/2008 5:12:22 PM PST by NormsRevenge
WASHINGTON – General Motors Corp. said Tuesday it needs $12 billion in government loans to keep operating, telling Congress in a bluntly worded report that its collapse could have "severe, long-term consequences to the U.S. economy."
GM said it would seek up to $18 billion from the government: $12 billion in loans, including $4 billion by the end of December, and a separate $6 billion line of credit in case market conditions worsen.
"Absent such assistance, the company will default in the near term, very likely precipitating a total collapse of the domestic industry," GM said, contending its collapse would have "a ripple effect that will have severe, long-term consequences to the U.S. economy."
"There isn't a Plan B," said Chief Operating Officer Fritz Henderson. "Absent support, frankly, the company just can't fund its operations." He said GM would need $10 billion to $12 billion by late March.
(Excerpt) Read more at news.yahoo.com ...
There is plan B you disingenuous would be thief. It’s called receivership. Chapters 11 and 7 are at your service. If we subsidize our failing northern factories laden down with bad union deals, we deserve the taxpayer revolt and breakdown that’s coming.
This will also be a nail in the free trade coffin as we show no hesitation to subsidize our crappy offerings. That could be really disastrous. Protectionism is a fool’s gambit.
All because they let a cash cow in the "Vega" go.
It just ain't fair....
The final straw was when the windshield leaked on my new 2003 Chevy Suburban. That leak was never corrected properly by several dealers and created mildew, and a wide range of electrical problems as a result of the moisture inside the cabin. I had to battle them for over two years and never got it resloved. The last attempt to resolve it, they offered me the number of the dispute arbitration panel, I told them that I already had that number, and it was the same number as the Toyota dealer down the street. They hung up on me, and I traded that POS for a Toyota Land Cruiser the following day.
Screw them....wouldn't buy water from them if I was on fire.
This is a pointless exercise. Average American is 14 trillion in personal debt (maxed out on credit card and equity loans), and feds are 9 trillion in debt. Wall Street blew up our real cash with leveraging and derivatives, and Main Street is going into survival mode. If feds give every American $ 5000 to buy a car, they would simply use it to pay down their credit cards or sock it a way anticipating being laid off. Americans are flat broke and do not plan to buy big items or take on more debt. Figure the coming depression will last atleast ten years. The next crisis will be in commercial real estate as malls lose tenants as retailers cut down and close stores and huge defaults on credit cards as Americans get laid off after Christmas.
Some people here would like it.
Tomorrow’s headline: Toyota plans expansion...in Detroit.
“Do nothing” is always a plan B. And a damn good one in this case.
Not bloody likely. Too many UAW workers in town.
Congress could buy the entire company outright for less than 5 billion.
This 'bailout' is fiscal insanity.
L
One of the worst things politicians have done to our country is ingrain in Americans a Marxist, labor-centric concept of the economy. They’ve planted in the American subconscious the notion that businesses exist not to turn a profit, but to create jobs, regardless of whether those jobs actually provide any value to the economy.
That’s the entire rationale behind the auto bailout. GM and Ford have to be saved not because they provide some valuable service to our country, but because they and their suppliers employ too many people. Forget the fact that an obscene number of those jobs either add less value to the economy than they cost or add no value at all.
Therefore, Congress is going to suck capital out of productive, profitable sectors of the economy and shovel it down that black hole in Detroit, all in the name of “jobs.” Forget the fact that that money has to come from somewhere, probably from somewhere where it could have been used to hire someone in an industry that is actually viable.
I really wish we had someone who could go in front of the American people and ask them, “Why is this GM worker’s job more important than yours? Why should your job be sacrificed to save his? Is it because he’s part of a union that gives money to Congressmen and you aren’t? Isn’t Congress supposed to be representing all of us?”
No one will, though. Free enterprise has no defender in Washington today. Democracy exists now only to distribute largess to those who have the most influence at the moment. Usually I’m pretty optimistic about the ability of America to withstand the depredations of its leaders, but things like this start to make me wonder if we aren’t turning into a cross between the Weimar Republic and the Soviet Union.
See, I don’t understand why everyone is so afraid of Obama implementing a socialist agenda. We are already living under one.
Pretty funny stuff. ;)
Thanks, boggles the mind when one sees numbers like that and the bail-out number..
“The great UAW BAILOUT of 2008”
They got the best government money could buy on Nov. 4th 2008.
Oh, sh*t!.... Stocks skid, Down 12! AHHHHHGH!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.