BREAKING SHOCKER! Obama Administration To Steer GM Towards Bankruptcy!

I don't know any individuals who personally employ hundreds of thousands of people directly, and millions indirectly, do you?

An individual bankruptcy is tough, but just isn't analogous to the catastrophe of a major corporation's collapse.

So they get a clean slate and 30billion? That's almost as good as being able to ditch the union! Would suck to be hard core capitalist and paying US taxes right now though...

I will have to agree with 1uaw on this one. There would be no need at all to give a company any money when they would be going bankrupt, also the uaw and GM has cleard major hurdles to settle things outside of bankruptcy story sounds very "fishy" at best.

GM will be in Chapter 11 on June 1st whether it wants to or not. You can't expect to close down hundreds of dealers without significant lawsuits GM can't afford (unless the bankruptcy court flipped all of them the bird and told them to get lost). Look at what's happening to Chrysler.

Outside of bankruptcy, you can't expect to close Pontiac without having to give dealers severance packages. Oldsmobile cost GM $2 billion, Pontiac will cost even more, but in bankruptcy court, you and the judge can screw anyone over. It's not like the current administration will let GM and thousands of jobs disappear in this economy.

GM is burning through cash faster than Australian bushfires burn through the Outback. The only problem is, they don't have this cash, it all belongs to Uncle Sam. What happens when GM's cashflow runs out of gas? Well we already know that, Chapter 11 on June 1st. There's no need to give GM an extra $30 billion when it will come out of bankruptcy court with debt problems solved and a new lease on life.

I'm not to sure who to be mad at...the Obama admin. that stated "Change" or the Automaker that keeps stealing our money...oh wait...the admin. is allowing this. How stupid I was.

A fair response would include the Bush/Paulsen team that started the bailout/loan process, after years of failed economic policies that set the stage for the housing and finance meltdown.

It is quite possible that stalling a GM bankruptcy for six months, when there is more confidence that the stock market and banking industries will survive this mess, will allow GM to use bankruptcy to dump the vestiges of the post-WWII economy that it was designed for. Fewer dealers, cheaper labor, less debt, fewer divisions, all are needed changes.

Seems to me that the Republican and Democratic administrations have handled this situation fairly well, and I suspect the costs to the taxpayers would have been far worse without these difficult moves.

Is ANYONE shocked by this? I know I'm not. Dumb headline.

The headline was being sarcastic.

If you have been reading Auto spies we said they would go bust long before the even the first ridiculous bailout.

001

Note this --

"The government previously indicated that it planned to take at least 50 percent of the restructured company, and likely would take the right to name members to its board of directors, as it has at Chrysler, where the government will control four of nine seats."

News of GM's long-awaited bankruptcy pales compared to de facto government ownership of banking, insurance, the auto industry (health care next?) at the expense of earth-shaking deficits. It is not an original thought with me that this administration is masterful at drawing your attention to some outrageous-sounding controversy, while the real outrage happens behind the scenes. Who cares about the legal and financial mechanisms being employed to deal with the GM mess; have you seen how the dollar is already sliding against other currencies because of the huge deficits the US Treasury is running up -- just as predicted? Have you noticed China (which has enormous holdings in US Treasury notes) rumbling about replacing the dollar with the yuan as a world trade currency? NEWS FLASH: In 5 years time, you may not be able to afford an imported car, because the dollar might be worth so little. Learn to love the GM and Chrysler line-up, I guess...

TechRightGuy....... You are right I have both a Toyota and Chevy in my garage both have been trouble free for the 3 years of the Toyota and 2 for the Chevy there is absolutely nothing wrong with owning a domestic when you compare the cars as machine vs machine but when you take a look at the economics comparison when I bought my Toyota I estimated I sent about $18,000 to support Japan and the yuan, money that will take decades to return to the US economy because our exports are a trickle compared to our imports. I found this to be a very frightening and dire wake up call all Americans should to take notice to before we buy ourselves into a third world nation status.

GM is destined to fail. They are a bunch of slackers.

The Administration??? You mean years of making shitty cars and becoming a large HMO had nothing to do with it? That IS breaking news, to me at least!

AUTOSPIES SHOCKER!!!!! A MEANINGLESS HEADLINE!!!!!

Obama better put the basketball down and he and Chia Pet Biden better start creating jobs.

Obama is still the second coming of Jesus Christ, isn't he?

Yes, which just shows how much of a cesspool Bush and Co. left for him to clean up.

But he knew the mess, he knew they couldn't make it so WHY did he WASTE all the money on the bailout?

He was a great candidate and is a great talker but his actions in the first 100 days show he's a bonehead businessman.

Just like Bush was.

001

delan -

Do you mean Bush knew about 3 high level terrorists that were water boarded?

It was the Libs that dropped two atomic bombs buring innocent school children to death!

Then the Libs got us into the Korean and Vietnam wars.

During President Bush more people bought homes in his first 4 years than during Clintons 8 years.

Let us not forget during Clinton when the terrorists bombs the WTC and attacked the USS Cole. 9/11 was planned when Clinton was President.

I'll tell you this much, Republicans will not support Obama's economy and if you Libs want GM to survive you better not buy a Japanese or German car. You better support your UAW scrum or else they will be working in the fields with the illegal aliens Obama plans on giving amnesty to.

Obama better put the basketball down and he and Chia Pet Biden better start creating jobs.

Obama is still the second coming of Jesus Christ, isn't he?

— EL34


VERY VERY TRUE

I am self employeed, do u all know how many small business is getting ready to go into bankrupt, including myself, this summer should do good much better than anyother summer, if not we will see sea of small business going down...

If it's a breaking shocker, you're using too many fingers, and she's gonna be in pain.

I have question, after the Bankruptcy, the name will change or it will be the same GM?

EL 34 You are spot on buddy!!!!!!

I second that

VW is partially state-owned. It has union members on the board. It, like all German automakers is receiving massive bailouts, in the form of "tax credits to get old cars off the road."

All of these "anti-government, anti-socialist" arguments are tragically amusing.

The real sad part about this is lost to most people. The USA is borrowing itself into OBLIVIAN and very soon the Dollar will simply not be worth anything. So anyone who has the "dollar" saved in large numbers will get burned BIG TIME. It will be better to be in massive debt when the dollar evaporates, rather than have "dollars" put away. So the irresponsible will essentially be the ONLY ones to benefit when this happens.

US Debt is approaching 80% of GDP, which is awful........but it was 120% of GDP under Eisenhauer, and we did not have inflation, the dollar was worth far more than it is now, and we thrived.

We need to get the debt back under control, but it will be easier with functioning industries to make things.

The Chinmerica model of they make it, we buy it with debt failed........we need to restructure, like GM, and quit kidding ourselves that the world works on "Free Markets," when it does not.

Since he's the Prez, let's blame Obama for all that ails us, including American auto-makers who have been driving towards bankruptcy for decades. Sorta like blaming the quarter-back who got put into the game for the last 20 seconds for the 107-0 loss. Cheers :-)

"During President Bush more people bought homes in his first 4 years than during Clintons 8 years."

And that's exactly how we wound up in the financial disaster that we are in now: An financial industry gone wild selling bundled mortgages without caring that they were selling them to people who would never pay them back.

Thanks for the proof.