epeon

Wall Street Breakfast: Must-Know News

Sorry to say this, but Obama is forcing GM into bankruptcy. He fired the chief opponent (Waggoner) and he has removed the two chief obstacles (by government guaranteeing warranties and debtor in possession financing). The new boy has gotten the message: "you want your job, go to bankruptcy."

I think what Obama wants is for the bankruptcy judge to make the politically difficult cuts. He can say his hands are clean to the unions. Of course, this is bullshit, but the rank and file is sold that sort of nonsense all the time. The political danger is that they may realize that he is playing them for doops.

The economic danger is that they think they can get through bankruptcy quick. I am betting with all the legal wrangling, they will be in bankruptcy about as long as Delphi (i.e. years).


On Apr 13 08:24 AM pattisw wrote:

> If Gm goes bankrupt it will throw thousands more on the unemployment
> roles and a few hundred thousand retirees into poverty.
> The guaranteed government pension is a substantial cut in the pension
> now received.Ours would be cut in half.We would not be able to stay
> in our home or keep up our vehicle payment(repo time).We are a tiny
> sample,there will be more home foreclosures,repossesi... card default,food
> stamps needed and $13.5 billion needed by the government pension
> plan.It is underfunded and will need government aid,so the taxpayers
> will be paying anyways.
> Many retirees are too old to get a job and those that are not...well
> where would you get a job in a state like Michigan where I live?
> Wouldn't it be cheaper and better in the long run to LOAN GM the
> money and get it paid back someday than to spend billions that will
> never be repaid?
> Obama will never be elected to a 2nd term if he stabs the union in
> the back and allows the retirees to be thrown away(think AARP,UAW
> support).