GM: $12B needed to keep operating ("There isn't a Plan B," - Bail-US-Out or Pay Big-Time)

AP on Yahoo ^ | 12/2/08 | Ken Thomas - ap

[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.

[john in springfield]

Let’s cut out the middleman. If we (taxpayers) are to OK the deal, it will inflate the national debt and require T-bonds to be sold bought up by.....the Chinese. Why not sell the “big 3” to China and cut out the middleman?

Really.

Option A: US car makers go broke and the industry is taken over by the Japanese.

Option B: US car makers get bailed out and the US itself is progressively owned by the Chinese.

Given the choice, I'd prefer to be owned by the Japs.

[curiosity]

Of course there is a plan B. It's called Chapter 11.

[lowbridge]

There isn't a Plan B," - Bail-US-Out or Pay Big-Time)

Bail-US-Out Pay Big-Time or Pay Big-Time

Fixed for accuracy.

[SERKIT]

Given the choice, I'd prefer to be owned by the Japs.

Works for me - just get us out from being the middle-man. The problem is that China is holding a lot of our debt right now. With Hillary as SoS, look for even more cozy relationships with China given the Krinton's previous Chinese connections.