Automotive News, Media & Press - GM Files For Bankruptcy

General Motors files for bankruptcy protection

http://d.yimg.com/a/p/afp/20090529/capt.photo_1243624906231-2-0.jpg

Dan Strumpf and Kimberly S. Johnson, AP Auto Writers
On Monday June 1, 2009, 9:02 am EDT

NEW YORK (AP) -- General Motors filed for Chapter 11 bankruptcy protection Monday as part of the Obama administration's plan to shrink the automaker to a sustainable size and give a majority ownership stake to the federal government.

GM's bankruptcy filing is the fourth-largest in U.S. history and the largest for an industrial company. The company said it has $172.81 billion in debt and $82.29 billion in assets.

As it reorganizes, the fallen icon of American industrial might will rely on $30 billion of additional financial assistance from the Treasury Department and $9.5 billion from Canada. That's on top of about $20 billion in taxpayer money GM already has received in the form of low-interest loans.

GM will follow a similar course taken by smaller rival Chrysler LLC, which filed for Chapter 11 protection in April. A judge gave Chrysler approval to sell most of its assets to Italy's Fiat, moving the U.S. automaker closer to a quick exit from court protection, possibly this week.

The plan is for the federal government to take a 60 percent ownership stake in the new GM. The Canadian government would take 12.5 percent, with the United Auto Workers getting a 17.5 percent share and unsecured bondholders receiving 10 percent. Existing GM shareholders are expected to be wiped out.

Albert Koch, who helped Kmart Corp. through its Chapter 11 reorganization, will serve as GM's chief restructuring officer.

Administration officials, speaking on condition of anonymity in advance of Obama's public remarks, said they expect the bankruptcy court process to last 60 to 90 days. If successful, GM will emerge as a leaner company with a smaller work force, fewer plants and a trimmed dealership network.

President Barack Obama is scheduled to address the nation about GM's future at midday from Washington, and GM CEO Fritz Henderson is to follow him with a news conference in New York.

Beyond the bankruptcy announcement Monday, GM is expected to reveal 14 plants it intends to close or idle. One of those plants, however, will be retooled to build a small car.

GM's filing comes 32 days after a Chapter 11 filing by Chrysler, which also was hobbled by plunging sales of cars and trucks as the worst recession since the Great Depression intensified.

The sale to Fiat means Chrysler could be out of bankruptcy within the government's original timeframe of 30 to 60 days. Chrysler's plan gives a 55 percent stake of the new company to a union-run trust for retirees. Fiat gets a 20 percent stake to Fiat that can ultimately grow to 35 percent. The U.S. and Canadian governments get smaller pieces.

The third of the one-time Big Three, Ford Motor Co., has also been stung hard by the sales slump, but it avoided bankruptcy by mortgaging all of its assets in 2006 to borrow roughly $25 billion, giving it a financial cushion GM and Chrysler lacked.

GM will move forward with four core brands -- Chevrolet, Cadillac, Buick and GMC -- and cut four others. The company plans to cut 21,000 employees, about 34 percent of its work force, and reduce the number of dealers by 2,600. GM said it was finalizing a deal to sell Hummer, and plans for Saturn are expected to be announced within weeks.

"There is still plenty of pain to go around, but I'm confident this is far better than the alternative," said Sen. Carl Levin, D-Mich. "It's a new beginning, it's a rebirth, it's a new General Motors."

GM, whose headquarters tower over downtown Detroit, said it believed the filing was not an acknowledgment of failure, but a necessary way to cleanse itself in an orderly fashion of problems and costs that have dogged it for decades.

Trading of GM shares was halted early Monday after they plunged Friday as low as 74 cents, the lowest price in the company's 100-year history. GM will be kicked out of the Dow Jones industrial average because rules established by the News Corp. unit that oversees the index prohibit it from including companies that have filed for bankruptcy.

The bankruptcy filing represents a dramatic downfall for GM, which was founded in 1908 by William C. Durant, who brought several car companies under one roof and developed a strategy of "a car for every purse and purpose." Longtime leader Alfred P. Sloan built the global automaker into a corporate icon.

GM first sought help from the Bush administration and Congress last year as it was in the midst of being staggered by $30.9 billion in losses and seeing its cash resources shrink by more than $19 billion.

Consumers, worried about the economy and the future of GM, shied away from the company's cars and trucks this year even after President George W. Bush promised loans and Obama followed through with billions more in assistance -- plus a stiff set of new requirements GM was ordered to meet.

When GM failed to do so by a March 31 deadline, Obama forced out CEO Rick Wagoner and replaced him with Henderson.

Wagoner served at the helm since 2000 and was the face of GM when he first flew on the company jet to ask Congress for aid. After a firestorm of negative publicity, Wagoner rode in a hybrid Chevrolet Malibu from Detroit to Washington for a second set of withering questions before lawmakers.

But that amounted to only a sideshow as the automaker's financial position worsened. Its revenues plunged almost 50 percent in the quarter ended March 30 and it racked up another $6 billion in losses.

The Henderson-led GM faced a government-imposed June 1 deadline to restructure, slash costs and modify contracts with its union and dealers. But meeting most of those demands, plus a late agreement by many bondholders to swap portions of the $27 billion in debt they are owed for shares in a new GM, were not enough to prevent the court filing.

In fact, it was an all-out sprint to Monday's filing, as GM quickly sought to nail down deals with its union, bondholders and sell off brands and along with most of its Opel operations in Europe in an effort to appear in court with a near-complete plan to quickly emerge as a leaner company with a chance to become profitable.

The German government on Sunday agreed to lend GM's Opel unit $2.1 billion, a move necessary for Magna International Inc. to acquire the company. The Canadian auto parts supplier will take a 20 percent stake in Opel and Russian-owned Sberbank will take a 35 percent, giving the two businesses a majority. GM retains 35 percent of Opel, with the remaining 10 percent going to employees.

In the U.S., the UAW's ratification of concessions, announced Friday, will save GM $1.3 billion per year. The new deal freezes wages, ends bonuses and eliminates some noncompetitive work rules.

It also moves billions in retiree health care costs off GM's books. In exchange for its ownership stake, $6.5 billion of interest-bearing preferred shares, and a $2.5 billion note, the trust will take on responsibility for all health care costs for retirees starting next year. Higher health care costs alone accounted for a $1,500-per-car cost gap between GM and Japanese vehicles.

GM will offer buyouts and early retirement packages to all of its 61,000 hourly workers as it plans to shrink overall employment. The company also has about 27,000 white collar employees. In contrast, GM employed 618,000 Americans in 1979, more than any other company.

GM earlier outlined a plan to cut about 1,100, or 40 percent, of its dealers by the end of 2010. It also plans to shed about 500 dealerships that market the Saturn, Hummer and Saab brands.

But just cutting labor and overhead costs won't be enough to save the company. It also has been working to streamline its engineering and design, as well as standardize many parts so they can go into multiple models.

The once powerful GM earns a place in history as the largest U.S. industrial company to file for bankruptcy protection, and the fourth-largest company overall to do so based on its $82.29 billion in assets.

Lehman Brothers Holdings Inc.'s September 2008 bankruptcy filing is the nation's largest with $691 billion in assets, and likely served as a catalyst for GM -- and Chrysler's -- downfall, as it hastened the erosion of credit markets, making it more difficult for consumers and dealers to finance new vehicles.

http://finance.yahoo.com/news/GM-bankruptcy-court-filings-apf-15396356.html?.v=34

Even though they fucked themselves with turd cars such as the Pontiac Aztek and the Chevy Vega it's still a sad day for me because I've only driven a GM product. Oh well, things can't last forever, especially when you have the wrong people making the worst decisions.

Thank God, this should have happened months ago.

NEW YORK (AP) -- General Motors filed for Chapter 11 bankruptcy protection Monday as part of the Obama administration's plan to shrink the automaker to a sustainable size and give a majority ownership stake to the federal government.

The plan is for the federal government to take a 60 percent ownership stake in the new GM.


Fantastic! I've always wanted a 4 cylinder hybrid Corvette! :D

This whole deal has me considering cashing in my GM extended warranty...

gm should have filed right away, abolished the UAW, and started over.
Now the government has 60% shareholding, with our tax money, however we will have no say in what happens. Government should stay out of business.

Bigger government is Obama's plan.

wow.... what an awesome president...

well say goodbye to General Motors and hello to Obamas Government Motors. :mad::argh:

This will only prove to be a more costly form of life support for GM.

They will be on the government life-support from this point forward.... at least up to some point when.... if ever.... they pull the plug.

I remember when everyone thought we WON the cold war.

Yay, socialism...

To those of you bitching, did you not read the part about how the assistance was promised by Bush and all Obama did was follow through? Either way we're fucked, but to them this is the lesser of two evils. All we can do is wait and see at this point.

This is an interesting time to be alive...if I ever have kids, they'll probably end up reading about this shit in Econ 101.

Fantastic! I've always wanted a 4 cylinder hybrid Corvette! :D

If they even offer it. :engarde:

gm should have filed right away, abolished the UAW, and started over.
Now the government has 60% shareholding, with our tax money, however we will have no say in what happens. Government should stay out of business.

Unfortunately the government had to step in because if GM had completely failed you would be talking about not just the employees of GM but suppliers as well (steel companies, parts manufacturers, chemical plants etc.) that would have been closed as well. With unemployment reaching levels most of us haven't seen in our lifetime, it's a no-brainer that the government had to step in. I don't like big government, socialism etc but it seems warranted in this case. :bang:

Unfortunately the government had to step in because if GM had completely failed you would be talking about not just the employees of GM but suppliers as well (steel companies, parts manufacturers, chemical plants etc.) that would have been closed as well.

In a capitalist society bad businesses need to fail. Someone will always take their place. The government has a poor track record at running things. I'm not sure where all this trust in politicians to run a corporation like GM is coming from all of a sudden. Many of us said on this site months ago that GM needed to declare bankruptcy. Now, after billions of dollars have been thrown away and the government owns them, we were right.

I agree they should have been allowed to fail. Sure the economy would have realllly taken a dump, but it would have bounced back. And if the Feds wanted to help durning that time they could have took all their bail out money and used it to create federal jobs. When times are tough, I'm sure no one would have a problem being a Park Ranger, or a service work for their town, or a number of other goverment jobs.

I believe the correct statement, in a socioeconomic system such as ours, should be, 'businesses such as GM should never have been allowed to get as big as they did and become a threat to our economy if they were to fail.' This goes for those wall street jackasses as well.

If they even offer it. :engarde:

Very true. The new Corvette may turn out looking like this.

http://www.litterglitters.com/EmptyParkingLot.jpg

So this means that all the high dollar contracts with the union employees can be broken? If so it sounds like a good housecleaning opportunity for GM.

So this means that all the high dollar contracts with the union employees can be broken? If so it sounds like a good housecleaning opportunity for GM.

I wouldn't count on it. Now that the gov owns GM they will probably force some compromise that allows the unions to stay.

This is an interesting time to be alive.

i was thinking the same. the 2012 election should show whether our country approves of a little bit of socialism...

To those of you bitching, did you not read the part about how the assistance was promised by Bush and all Obama did was follow through? Either way we're fucked, but to them this is the lesser of two evils. All we can do is wait and see at this point.

Ignorance is bliss, as so many on this board can attest to.

I wouldn't count on it. Now that the gov owns GM they will probably force some compromise that allows the unions to stay.

The UAW is getting a 17.5% stake in GM. :bang:

Fuck GM, they did it to themselves and in turn to us. I would of liked to of seen them fail completely but I'm glad that our government prevented it. The government is in place to protect it's people and this country, not just from invading nations. As far as I'm concerned, I'm glad this administration had the balls to do what's write as opposed to what's popular.

^^^ I'm sorry but this is far from "whats right." The people did not ask our government to do this. And as far as I know we don't work for the government, they are supposed to work for us, but they don't.

Even though I don't think he was totally "write" I think one of the jobs of the goverment is to protect us from all things (to an extent) we'd all be pissing woodin nickels (you like that I heard it from some old dude) If all the sudden car manfaq. banks, housing and everything else just all the sudden went up and fell apart. We'd be in alot worse place then we are now.

^^^ I'm sorry but this is far from "whats right." The people did not ask our government to do this. And as far as I know we don't work for the government, they are supposed to work for us, but they don't.

If this countries economy was to crumble it would effect more than just the car industry and their suppliers. The collapse of the big three would have a ripple effect that would wipe out more industries than experts can predict. Maybe it's fine for those of us who aren't connected to the industry (such as myself) to wish them a speedy demise for their own mistakes but that wouldn't be fair for all those who aren't even remotely involved that would end up losing alot. I believe the Obama administration stepping into the fire and attempting to salvage what they can of GM is the right thing to do to protect the lively hood of millions of americans and maybe let this company have a second chance. I too would rather see GM fail but I don't want to see the aftershock of what the collapse of the big three would do to our economy, this country and the world markets.

I think GM can count it's lucky charms that things are as bad as they are.

IF the economy wasn't as bad as it is..... I think they would have been allowed to go bust. I don't think Bush would have done anything back in November.... even if Obama would have.

I don't like it.... but I look at it as a necessary evil.

To quote Obama... we are reluctant stock holders.

I think however..... they(GM) will be on life support for years to come. In other words, we will be reluctantly investing $BILLIONS$ of more $$$$$$$$ for many years to come.

GM going under would have hurt but it would have been over relatively quick (Believe it or not but their assets and employees don't just fall into a fucking blackhole after the company goes under). Instead, the government has decided to keep this shell of a zombie company on life support with the money people, who are in no way responsible, earned for themselves. Now, as the government entitles its people to even more debt they will make the pain nice and slow.

:bang::bang:

...IF the economy wasn't as bad as it is..... I think they would have been allowed to go bust. I don't think Bush would have done anything back in November.... even if Obama would have.


That's a good point.

GM going under would have hurt but it would have been over relatively quick (Believe it or not but their assets and employees don't just fall into a fucking blackhole after the company goes under).True, those displaced/discarded employees don't just fall into a black hole...they file for unemployment insurance, food stamps, welfare, maybe eventually steal from your home in order to survive etc.
It's a 'pay me now or pay me later' situation, very very few are getting out of this one unscathed. :nono:
Yeah, just let what little is left of industrial America fail while we're at it, these things won't result in any negative fallout across the nation LOL. :lol:

good enough fuck gm. a bunch of ball washers making 30 bucks a hour to put on lug nuts then have the balls to complain about that. i dont feel sorry one but.there is people out the busting ass for 10 bucks a hour in slave like conditons every day to make ends meat and then there are these people. o well shit happens. suck it up and move on!

Even though I don't think he was totally "write" I think one of the jobs of the goverment is to protect us from all things (to an extent) we'd all be pissing woodin nickels (you like that I heard it from some old dude) If all the sudden car manfaq. banks, housing and everything else just all the sudden went up and fell apart. We'd be in alot worse place then we are now.

The governments job is to only provide a military that is all the rest is just wasted on the lazy and the losers

True, those displaced/discarded employees don't just fall into a black hole...they file for unemployment insurance, food stamps, welfare, maybe eventually steal from your home in order to survive etc.
It's a 'pay me now or pay me later' situation, very very few are getting out of this one unscathed. :nono:
No...the assets get bought out by another company. And who is to say these people won't have jobs in 6 months to a years time after the dust has settled?


Yeah, just let what little is left of industrial America fail while we're at it, these things won't result in any negative fallout across the nation LOL. :lol:
You completely dismissed what I said. Letting a company fall will have negative consequences in the short term. I recognize that. The problem with what is happening is that this will hurt in the long term. Think: great depression and how government interference kept unemployment at such high percentages until people were conscripted into war. The recession of 1920 is good example of the government retracting and the economy recovering within a year's time. Keeping prices high by redistributing stolen and borrowed funds does not lead to long term economic prosperity. This is what has brought US manufacturing to where it is!

I don't know why I make this argument anymore. The US government is so dedicated to getting its fingers in as many pies as possible that there really is no stopping it. It's amazing how much Americans continue to trust their government after being lied to and stolen from over and over. Basic fucking economics surpasses the collectivist sheeple.

No...the assets get bought out by another company. And who is to say these people won't have jobs in 6 months to a years time after the dust has settled?True, we don't know for sure, they just might have jobs eventually.
Hopefully.






You completely dismissed what I said. Letting a company fall will have negative consequences in the short term. I recognize that. The problem with what is happening is that this will hurt in the long term. Think: great depression and how government interference kept unemployment at such high percentages until people were conscripted into war. The recession of 1920 is good example of the government retracting and the economy recovering within a year's time. Keeping prices high by redistributing stolen and borrowed funds does not lead to long term economic prosperity. This is what has brought US manufacturing to where it is!

I don't know why I make this argument anymore. The US government is so dedicated to getting its fingers in as many pies as possible that there really is no stopping it. It's amazing how much Americans continue to trust their government after being lied to and stolen from over and over. Basic fucking economics surpasses the collectivist sheeple.Good points there...I suppose there are valid arguements from both sides of that coin. :nod:

No...the assets get bought out by another company. And who is to say these people won't have jobs in 6 months to a years time after the dust has settled?

If 20% of the available jobs in this country are eliminated and 20% of america's workforce suddenly unemployed...where do you fathom these people would go? We have near record unemployment NOW...if all of a sudden 20% more people were looking for jobs, what makes you think a SINGLE ONE could find something? The last thing we can afford now is the loss of more jobs...let alone the largest loss of employment in the history of this economy.

Take a moment to think about what you are saying.

You completely dismissed what I said. Letting a company fall will have negative consequences in the short term. I recognize that. The problem with what is happening is that this will hurt in the long term. Think: great depression and how government interference kept unemployment at such high percentages until people were conscripted into war. The recession of 1920 is good example of the government retracting and the economy recovering within a year's time. Keeping prices high by redistributing stolen and borrowed funds does not lead to long term economic prosperity. This is what has brought US manufacturing to where it is!

This is not the early 20th century. You can't use that example because it just doesn't apply. We are a completely different economy than we were 100 years ago.

If the American auto industry is lost, it will start a domino effect that will topple this country. There will be no recovering in a year, or ten years. In ten years we could be a third world country.

I don't know why I make this argument anymore. The US government is so dedicated to getting its fingers in as many pies as possible that there really is no stopping it. It's amazing how much Americans continue to trust their government after being lied to and stolen from over and over. Basic fucking economics surpasses the collectivist sheeple.

However I agree with this for the most part...except that I don't think most people in this country "trust their government". It's just that no individual wants to be bothered with doing something about it...they all want someone else to take care of it.

I don't like it.... but I look at it as a necessary evil.

To quote Obama... we are reluctant stock holders.

No, what was necessary was for GM to declare bankruptcy last year. They didn't have to wait until billions of taxpayer dollars were thrown away. The bail out failed. The government can't run anything right. It's amazing that all of a sudden so many people trust politicians to run GM correctly. Where does this trust come from?

At the same time, you can't put all the blame on the government for GM waiting this long to file bankruptcy. They asked for the bailouts long ago, and Bush promised that they would get them. Bad decisions were made on both sides.

No, what was necessary was for GM to declare bankruptcy last year. They didn't have to wait until billions of taxpayer dollars were thrown away. The bail out failed. The government can't run anything right. It's amazing that all of a sudden so many people trust politicians to run GM correctly. Where does this trust come from?

I don't think anybody really trusts the government to run GM even remotely correctly. We are just thankful that there's a chance that GM will be around to have a future...whatever that may be. It's either this, or nothing.

for all of those saying that we "had to bailout" the auto industry, banks, etc...

I hope you realize that we leveraged everything on our children and their children (as far as I'm concerned it's fiscal child abuse) . We don't have the money to give these bailouts, printing presses are running as we speak. And who holds our debt? China?... Anyone ever heard of hyper-inflation? because its coming. Please don't tell me this is the answer to our problem????

Let me make this clear, I'm am not saying I have the answer, nor am I claiming to know what we should have done. But when politicians (Bush and Obama) are quick to rush-in with the "emergency" answer (neither of which are economically educated btw) there's a good chance the "emergency fix" is not the right fix. Never trust a politician in a "crisis" - there is a reason everything happened so fast - and for those that haven't noticed, our government is overstepping the bounds of the Constitution and has been taking some big power grabs

If 20% of the available jobs in this country are eliminated and 20% of america's workforce suddenly unemployed...where do you fathom these people would go? We have near record unemployment NOW...if all of a sudden 20% more people were looking for jobs, what makes you think a SINGLE ONE could find something? The last thing we can afford now is the loss of more jobs...let alone the largest loss of employment in the history of this economy.

Take a moment to think about what you are saying.

Penske is apparently buying Saturn. Perfect example of what I am talking about. The assets of a failed company are bought up by someone in the private sector seeking to make a profit and not simply "save jobs." However, in this process of seeking profits and success in the industry, useful jobs are created. The jobs, the people, the assets...they won't disappear and companies will need them in the future.


This is not the early 20th century. You can't use that example because it just doesn't apply. We are a completely different economy than we were 100 years ago.
The recession of today was caused by the same basic thing that led to the recession of 1929: Too much government interference into markets via the injection of credit from the Fed.

If the American auto industry is lost, it will start a domino effect that will topple this country. There will be no recovering in a year, or ten years. In ten years we could be a third world country.
The American auto industry will not be lost. Penske's purchasing of Saturn reinforces this.

We are going to become a third world country when our government owns our industries! The government has no interest in profits, which are required for a company's viability. If the company is failing, it just does more of the same: spend. It simply prints, borrows, and steals money to throw at all of its projects. This bleeds taxpayers of their earned income while shitty products are produced.

ChaseSS makes a good point there. We can't afford this!

i was thinking the same. the 2012 election should show whether our country approves of a little bit of socialism...
If FDR's 4 terms are any indication, Americans are tolerant of some government intervention when they believe it is economically necessary.

While the duct taped crutch that Chrysler and G.M. are using for the time being seriously adds to the current political hot topics and to the sad state of the economy as a whole, how long did it take to get out of the $3 trillion of debt we were in in the 80's after Reagan? If you take the cost of a Corvette in 1987 (msrp of $27,999.00-source http://www.corvettelink.com/corvette_years.asp?Year=1987) compared to a new 09 Corvette(-$49,515 source http://www.chevrolet.com/pages/open/default/family/corvette.do)and then compare the $3trillion and the (Bush and Obama combined!) of $11,388,997,387,553 or just under $11.5 trillion then we see this as the worst hole we have ever faced. It will take at least a generation most likely to even get half way out. In this time in history it MAY be a necessary evil. Time will till if this works or not. I would like to see G.M. continue. Quietly other companies were allowed to disappear into other companies or vanish altogether. :bang: How do we know what to save? :secret2:

Penske is apparently buying Saturn. Perfect example of what I am talking about. The assets of a failed company are bought up by someone in the private sector seeking to make a profit and not simply "save jobs." However, in this process of seeking profits and success in the industry, useful jobs are created. The jobs, the people, the assets...they won't disappear and companies will need them in the future.

It's nice when that happens...but what happens when no one wants to buy? Then what? You can't go in to this counting on someone buying up remaining assets.

It's nice when that happens...but what happens when no one wants to buy? Then what? You can't go in to this counting on someone buying up remaining assets.

If certain assets aren't bought then they likely aren't worth buying!

If certain assets aren't bought then they likely aren't worth buying!

Absolutely true...but then you are still left with the masses of people formerly employed under those bad assets.

This was part of my original point.

If FDR's 4 terms are any indication, Americans are tolerant of some government intervention when they believe it is economically necessary.

Henry Morganthau, Secretary of Treasury, in May, 1939, years after the New Deal, said, "We have tried spending money. We are spending more than we have ever spent before and it does not work. And I have just one interest, and now if I am wrong somebody else can have my job. I want to see this country prosper. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises. I say after eight years of this administration, we have just as much unemployment as when we started. And enormous debt to boot." That is the secretary of treasury in charge of the money disbursement and statistics collection during the 1930s, making that statement.

Make no mistake.. this move is an un-holy alliance between the government and auto unions to acquire more political power and control along with the banks..

20 some odd billion dollars later and we still have a "bankruptcy".. ( I put it in quotations because its really not a legal bankruptcy ) we still have thousands of lost jobs, closed dealerships...

But really, lets call this what it is as it is not a real bankruptcy where the Automakers get to re-negotiate contracts and restructure for success.. Bond holders, that hold the majority of the debt, are first in line..

This is the Obankruptcy where the union and the government get the gravy..Politicians with no business experience make decisions ( Oh Boy!! We get to make GREEN CARS with your Money to save the planet from ourselves!!)

Seriously though.. if this were a real bankruptcy… it would be a much different story in terms of what is fair for the people that have a stake in the future of GM.

Here’s a clip on what is going down for those that hold the majority of debt in GM.. ( The bond holders) … The government is asking that they take it on the chin with a measly 10% and the Government owns 50% the union gets 39%..

http://www.swifteconomics.com/2009/05/27/gm-bond-holders/

This clip also provides some insight into why it went down this way with Chrysler with the banks owning most of the debt for Chrysler ( The banks hand being forced as a result of accepting tarp Money)

He ( The bond holder speaking )also reminds us that Government has a horrible business track record with Amtrak and the Post office.. The federal government's effort to prop up the nation's largest auto manufacturer is eerily similar to a 40-year effort to revive the nation's ailing railroad system ( Amtrak). Billions of taxpayer dollars later, Amtrak still needs the government to survive and it appears General Motors is headed down the same track.

As for the post office..the postal service regularly miscalculates its fiscal needs. For example, an estimated $1.35 billion deficit for fiscal year 2002 grew to $4.5 billion only six months later.

No company with such wildly fluctuating forecasts would last long on the free market. Remember the Enron scandal? The company collapsed within weeks because of shady bookkeeping like this.

I dont know about others but I refuse to support this government take over and will not purchase a GM or Chrysler to further this insanity.

Here’s another clip to put all this bailout insanity in perspective...

Rant over… :mad:

http://www.youtube.com/watch?v=1zSe23Sdar0