BIG 3 BAILOUT

[x Baldwin Motion]

email from comedic source


bottom line says "we don't need to compete"

[Xplantdad]

I think the automakers should continue with the employee pricing...forever!*

*Since it looks like we'll be bailing their butts out in some form...and paying for it...then we are now considered part owners, right?

[47Hammer]

[ QUOTE ]
I think the automakers should continue with the employee pricing...forever!*

*Since it looks like we'll be bailing their butts out in some form...and paying for it...then we are now considered part owners, right?










Including long term financing @ "0" APR on every car and truck they sell.

[firstgenaddict]

They should just send everyone in the us a certificate good for a vehicle...

It's about that ludicrous... when they devalue our currency by 90% next year everyone who supported all this government bailout crap are going to look like FOOLS or they will deny deny deny!!! or is it lie lie lie... We deserve the crap we get we put the scum of the earth... someone you wouldn't have in your home because of who they are yet we elect them... they think Washington is their own piggy bank and they'll be damned if we're gonna get in their way of pillaging the treasury... it's sad sad sad to see men who lie cheat and steal elected over and over...

[firstgenaddict]

The best investment at the beginning of a hyper inflationary period is anything you are going to use regularly and will not go bad... if suddenly paper towels go to $10 per roll and you bought them at $1... who made out? you didn't make any you really just didn't lose any money...
Weimar Republic anyone anyone... throw another 100 on the fire...

[COPO 70 RS/Z28]

Just a question, I know there are some financial guys here.

What would be the downside of GM filing. The company reorganizes and can renegotiate labor contracts etc. I know that there would be collateral damage but there will be significant pain any way this thing goes. The company gets a chance and the feds are kept at bay.

In not a financial guy so if someone could explain.

[MrsBillyBobcat]

http://www.freep.com/article/20081213/COL01/81213055

[TN2Lane]

It's not the labor costs that are the problem in bankruptcy, it's the suppliers. There are literally thousands of those, many of which are in just as tenuous shape as GM. GM buys parts on credit (not multi-year financed, but net 90 days and such) so if GM runs out of cash and has to file bankruptcy, a lot of parts suppliers are going to be forced into bankruptcy also.

Now, in the current industry, a lot of parts suppliers supply multiple manufacturers. This means that if, say, Chrysler goes into bankruptcy, Ford (which doesn't have the immediate cash problems of the others) is looking at the potential of a significant portion of their suppliers also going under. That's the logic behind Ford's CEO going before Congress asking for GM and Chrysler to be bailed out.

There are basically 2 kinds of bankruptcy for corporations - Chapter 11 (reorganization), and Chapter 7 (liquidation). The rules allow the creditors to decide if the filer can attempt reorganization or is forced into Chapter 7 liquidation. The consensus is that if GM actually has to file, the large number of creditors will force them into Chapter 7.

[427TJ]

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The company gets a chance and the feds are kept at bay.

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It's not the feds who need to be kept at bay, it's the smaller companies (suppliers, etc.) and banks GM owes money to who GM wants kept at bay. The feds want to give GM billions!

[427TJ]

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But we Americans were happy to buy Detroit's pickups and SUVs by the millions. Detroit gave us what we wanted when gas was cheap and we happily bought as many trucks and SUVs as they could build, shi**y or not.