Nice strategy leaking the bankruptcy rumors immediately after the stimulus was passed!
By Daniel at 14 February, 2009, 7:29 pm
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
What’s another measly $5 billion? GM’s banking on politicians becoming more and more jaded to billion dollar figures. Smart, but let’s hope it doesn’t work out for them! There’s simply no reason to expect them to survive the recession without a major restructuring…
They are like addicts. “More, more, more”, no matter what. It’s a quick fix. They’ll only get habituated more to having easy money available. They’ll be back. And the government will be faced with a dilemma, then, if they are not already: Lose whatever (of our money, btw) they have already committed and let them declare bankruptcy? Or keep throwing good money after bad, hoping things will ‘change’ at some point?
“Hope for change” doesn’t sound like a well thought out financial plan to me, but then again, I’m no expert.
The government has already committed $13.4 billion to GM as part of a federally-funded bailout. The automaker is expected to include its call for more funds in a restructuring plan it’s required to submit to the Treasury Department by Tuesday, though the company isn’t expected to include a dollar amount, according to the Wall Street Journal report.
However, Treasury Department officials believe GM needs at least $5 billion more in loans to keep operating beyond the first quarter, according to the report.
While filing for bankruptcy may be the best way for GM to cut costs and revitalize, if the company chooses that option it may include politically unpalatable moves to sell off assets and cut more jobs.
If the government doesn’t allow anyone to fail and keeps them afloat with borrowed funds/future taxpayer dollars, then the entire country eventually fails.
If Obama doesn’t stop the giveaways the country fails and he fails.
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
No comments yet.