Mr compromise

GM Job Loss: Bogus Economics

The only answer is the the employees, bondholders, stockholders, and yes the US Govt need to all share the pain to make this work.

Employees should take a cut in pay and benefits in return for a stake in the company.

The bondholders should settle for $.50 on the dollar. I am being generous. The shareholders should end up with maybe 10% of the company, albeit a profitable one.

The Gov't would have to fund the cash flow of the company until they start making the cars the consumers want, in return for a stake in the company.

It can work, but not when the leader of the UAW says no more concessions. What will he be saying in a Chaper 11 filing when the workforce can be laid off at will and all the union contracts are cancelled. Save your jobs now in return for a stake in a healthier GM.