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CNNMoney.com: GM to pull the plug on Pontiac

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K1052

Lifer
Aug 21, 2003
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Originally posted by: glenn1
Originally posted by: K1052
Originally posted by: glenn1
Originally posted by: K1052
Originally posted by: glenn1


GM lays out post-bankruptcy plans

This is complete crap. Why would the creditors (75% of the debt is owned by 5 big banks, who are also being bailed out by Uncle Sam) take a 90% haircut when they'll get back close to 100% in bankruptcy due to their long positions in Credit Default Swaps? GM is literally worth more dead than alive.

Also, WTF to 40% of the equity owned by the UAW, and half by the U.S. Government? I can't even imagine what kind of craptacular cars that would get built by that company, and who would be crazy/stupid enough to buy a car from them anyway?

Please, let GM die - it's truly a mercy killing at this point.
Even if they recovered 100% in court the press/public is going to figure out that the government provided the money which the banks are getting to kill off the company and send hundreds of thousands out of work during the worst downturn since the Great Depression.

Our goddamn bankers would be hiding out at my house for fear of their lives.
Perhaps the government should have thought of that beforehand. The workers are hosed either way.
The admin is probably leaning on the banks as we speak. I can see the government helping the bondholders out to some degree but if GM (and by extension the suppliers) up and dies on the table because the banks wouldn't play ball Congess will set land speed records for assembling a lynch mob in a desperate bid to placate millions of very pissed off voters. The financial sector as we know it would not survive that kind of wrath given the public's already dim view of it as a whole.
So to save a few thousand UAW jobs, the government would torpedo the financial sector, which they're already bailed out to the tune of trillions of dollars and which represents about a sixth of the entire economy? And for what? A company which will likely fail anyway, regardless of whether or how it reorganizes?
It'd be more than just a few thousand once you figure in the ancillary businesses involved.

I didn't say any of the options were overly attractive. Even if they can prop up GM for a few more years it would probably be worth it to give the economy time to adjust to it's shrinking and the public won't be out for banker blood.

Congress won't torpedo the financial sector but they'll definitely shell it until it's on fire then tow it back to port for an overhaul. Some suits will end up going down for it too, sacrificed by the politicians on the altar of the voter appeasement.
 

jpeyton

Moderator in SFF, Notebooks, Pre-Built/Barebones
Moderator
Aug 23, 2003
25,375
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Old news. Michael Bay already killed Pontiac during the final battle scene in Transformers.
 

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