anonymae

Possible Bailout Breakdown for Detroit's Big Three

This was posted on Bloomberg.

""GM said Nov. 7 it may run short of the $11 billion minimum cash it needs to pay its bills each month by the end of this year and will fall ``significantly'' short of that level by the middle of next year.

To contact the reporters on this story: John Hughes in Washington at [e-mail]... Jeff Green in Washington at o [e-mail]...
Last Updated: November 20, 2008 13:10 EST"""

Dec to July is 7 months. 7x11 = $77 Billion

This means GM must be turning a profit by July to survive. There is no way this will happen and the money will be wasted.

If GM fails, it by no means everyone is out of a job. What will happen is the good parts will be bought by Chrysler, Ford, and other companies. If they fail, private equity firms will carve the good stuff out. Just think, wouldn't it help the problem for the industry to purge its inefficiency quickly, however painfully, and get back on track. This package just delays the inevitable.

I am Democrat and big Obama supporter, but this simply does not make any sense.
On Nov 20 06:00 AM Allears wrote:

> $10 to $12 billion "would likely prove insufficient" to fund 2009
> CASH BURN.
> How terrible this sounds !!
> How the hell it gets to this ?
> Taxpayers will never have any CASH to BURN.
> Automakers just drop dead and start all over again.
> That's the only way.