Mister Jimmy

Sick of Hyperbolic Rubish

The article states that "Wall St. mismanaged a model that works once you take out the stupidity and bad risk management, whilst Detroit was asking the taxpayer to subsidize a completely broken model that needs to be revamped from the ground up". An utterly baseless statement, typical of Seeking Alpha authors, and evidence of the class bias evident in all of this.

The Tyranny of the Shareholders

Don't be so short-sighted, Felix. The issue is that 80% of consumers surveyed stated they would not buy a vehicle from an automaker in bankruptcy. So, Chapter 11, pre-packaged or not, would likely culminate in a Chapter 7 liquidation. The collapse of the domestic industry would follow with a cost to the taxpayers of hundreds of billions of dollars.

Could AIG Kill GM's Chances for a Bailout?

Failing to provide federal help for the auto industry will ensure its collapse, and Great Depression-style consequences. That being said, any assistance should ensure painful concessions by all concerned, including the UAW, management, retirees, shareholders, and bondholders..

Too Big to Fail, or Too Metastatized?

The difference is that Asian automakers are heavily subsidized and supported by their governments. In contrast, the U.S. auto industry is challenged by a mismanaged Federal bureaucracy. This week's approval of Federal loans are needed, and deserved.