GM to Offer Two Choices: Bankruptcy or More Aid

Wall Street Journal ^ | 2/14/09 | Wall Street Journal

[jimbo123]

General Motors Corp., nearing a federally imposed deadline to present a restructuring plan, will offer the government two costly alternatives: commit billions more in bailout money to fund the company's operations, or provide financial backing as part of a bankruptcy filing, said people familiar with GM's thinking.

The competing choices, which highlight GM's rapidly deteriorating operations, present a dilemma for Congress and the Obama administration. If they refuse to provide additional aid to GM on top of the $13.4 billion already committed they risk seeing an industrial icon fall into bankruptcy.

[Nomorjer Kinov]

Large US companies with thousands of employees are among the biggest boosters of socialized medicine. If they can slough off their legacy health care costs and pension benefits onto their customers through the government instead of through their products they think they can survive. We are so screwed.

[TheWasteLand]

Quite right. That dog-eat-dog stuff is really hard on the poor working man at Obamamotors.

Come to think of it, why not just nationalize all the car companies - that way people will have no choice but to buy the national cars? In fact, why can't this be done for all ailing industries? Or all industries period? I think I'm on to something.

There might even be an Obama administration Economic Czardom in my future.

[engrpat]

There’s a third option: nationalization. Can anyone say Obamamobile?

Maybe there is another option:

[randita]

It’s going to be interesting to see how Obama finds a way to keep the UAW eating out of his hand while saving GM at the same time. It’s a tough challenge, even for a Messiah. But if he can walk on water, he can find a way.

[randita]

Re: Post 21.

Bingo!

[Republic of Texas]

This is the same choice the federal government is going to give us soon.

[Reeses]

In for a penny, in for a pound.

[bgill]

Quit pandering to union wages and people will be able to afford a new car.

[american_ranger]

President zero and his fascist horde will allow GM to declare bankruptcy. Then they’ll allow GM to drop all retirement packages. The news media will show dozens and dozens of old folk complaining about losing their income and medical coverage. zero will hold town meeting after town meeting and will decry that this injustice can not stand. Then there will be another trillion dollar bill which will nationalize the GM retirees’ benefits. GM retirees will scream, “We’ve been saved!” GM will survive. Fascism will continue. And Americans will be screwed.

Did I mention that friends of zero will make millions by representing all of those involved? You know from lobbying, lawsuits, commissions, kickbacks, and payoffs.

For in the long run, President zero has two goals; destroy what is good about America and enrich all friends of zero (and also zero.)

[bert]

.....(and also zero.).....

I think the expression goes.... You can’t take it with you

[Doohickey]

Oh, we get to pick? Cool. I pick the option that doesn’t include more bailout money.

[jwparkerjr]

Here's what I would do if I were GM. I would donate every last single unsold vehicle in my worldwide inventory to charities like the Salvation Army, Goodwill, etc. Then I would take the tax write off for charitable contributions and declare bankruptcy. The charities then could raffle off the vehicles as they see fit. Just think how many people would buy tickets from the charities in hopes of winning a brand new car! Sure, there would be no warranty or service, but then untold numbers of new auto shops would open to meet the needs of those car owners. Same for suppliers. With all those cars suddenly out there it would make sense for people to get into the business, especially those who were already in it and supplying the now-defunct auto makers.

Washington would get no taxes from the filthy rich car maker and the $13 billion or so already given them to get them hooked on the feds would turn out to be a gift of sorts.

If it went well then the other auto makers might follow suit.

Just an idea.

[Max in Utah]

Can anyone say Obamamobile?

It's not your father's Oldsmobile, for sure.