Comments on: GM CEO: Bankruptcy Looks "More Probable"

Auto Exec Says More Plant Closures May Be In Offing To Meet Tougher Government Standards

[ramos1129]

Bankruptcy is the only option when your business or person cannot meet its debt obligations. A bankruptcy can take various forms. In this case, possibly a reorganization under Chapter 11 would best fit a company of this size. The court would order a receiver to amass all assets and debts, prioritizing them as to their payment priorities and then pay proportionately according to the assets on hand. Reorganizing GM will take a long time but then GM's inability to make competitive adjustments to compete with foreign products sounded its death knell.

Yet, nobody has specifically stated what type of changes the government wants GM to undertake before issuing more bailout money. Does anyone know what those changes are?

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To bajajohn1....excellent post. The media and GM are not doing the public any favors by referring to Chapter 11 as bankruptcy. Chapter 7 is bankruptcy.

People also forget the Chrysler Model. Sometime in the 70s (maybe 80s?), Lee Ioccaca(?) filed Chapter 11 for Chrysler. After much heroic business efforts, Lee guided Chrysler out of Chapter 11 and into a leaner much more profitable car company. Why not use this model now?

[didserve]

Adopt the China Senior Management disipline plan!

One Bullet!

[WayAround]

This prolonged "bankruptcy" THEATRE is designed to 1) manipulate the public's emotions and 2) play with GM's shares on the stock market.

Surely, the idiots in charge know at this point whether GM will go bankrupt.

[searingtruth]

"....Yet, nobody has specifically stated what type of changes the government wants GM to undertake before issuing more bailout money. Does anyone know what those changes are?"
bajajohn1


I demand that our American government remain capitalist, and reject socialism and fascism, forever.

Just as our founding fathers.
ST


The SearingTruth American Recovery Plan
----------------------------------------------------------
1. Investigate the treason and subversion of our Constitution during the Bush, and now Obama, administrations and try all Republicans and Democrats involved in Americas most shameful period in history. Any found guilty must be justly punished according to the rule of law.

2. Get as much of the trillions of dollars we gave away to billionaires back, as soon as possible.

3. Let all the failed corporations in America go bankrupt, so that viable companies can move in and clean up the mess.

4. Immediately implement universal health care for the people, and an emergency plan to shelter and feed us so we can weather the depression.

5. Implement publicly funded elections, and forbid political bribery (a.k.a. "lobbying"). Every citizen may contribute a maximum of $20.00 to their favorite candidate, whether they're a homeless person or a corporate CEO. And that's it, period. This will do away with one of the major causes of our rampant political corruption.

6. Begin a ten year economic disengagement program from China. Besides being an inhumane nation that regularly commits atrocities upon all those within its domain, they are our enemies and are simply using the trillions of dollars we are giving them to build an army to destroy us.

7. Implement fair trade, because "free trade" doesn't exist, and has helped to bring us to the brink of destruction. This means making trade agreements that benefit America, not other nations.

8. Forbid the outsourcing of American jobs, which is another key reason America is failing. And from now on any company that wants to move to another country may do so, and then never do business in America again without extremely high tariffs on their products or services.

9. Heavily regulate and monitor our financial system so criminal billionaire thugs can threaten us again.

A Future of the Brave

[bajajohn1]

Bankruptcy is the only option when your business or person cannot meet its debt obligations. A bankruptcy can take various forms. In this case, possibly a reorganization under Chapter 11 would best fit a company of this size. The court would order a receiver to amass all assets and debts, prioritizing them as to their payment priorities and then pay proportionately according to the assets on hand. Reorganizing GM will take a long time but then GM's inability to make competitive adjustments to compete with foreign products sounded its death knell.

Yet, nobody has specifically stated what type of changes the government wants GM to undertake before issuing more bailout money. Does anyone know what those changes are?

[tmittelstaed]

"...I've never owned a vehicle that wasn't at least 10 years old. Too bad for those who won't be able to get a new car every year. That's not my problem..." -IrishWench1

Yes it IS your problem you idiot moron. Where do you think that those 10 year old used cars your buying are coming from? If the new car buyers stop buying new cars they are going to hold on to their old cars and fix them rather than trade them in - then there will be a shortage of used cars and prices on them will jump to where you will be then only able to afford to buy a 15 year old car and then maybe no car at all because even those will be out of your price range.

I don't buy new cars either - the newest car I ever bought was 9 years old, every other one a lot older. I have a 41 year old car in the driveway right now and it still runs although I don't drive it every day anymore. And I know how to fix them, even the newer cars with the computers as I have all that tooling - I'm able to buy those old junker non-running vehicles and make a good car out of them so I'd be better off than you during a shortage of used cars - but I'm not dumb and saying that new car sales have nothing to do with me. Geeze!

Every used car you buy was a new car once that someone else bought and kindly paid for the depreciation so that YOU could have a niced used car that didn't put you in hock for the rest of your life. You jolly well better be concerned if the economy tanks and those nice people stop buying new cars and taking the depreciation hit for you.

[searingtruth]

"Ahhhh... the disaster of government arrogation.

So many generations disproved, and so many generations embraced.

By the children of terror, desperately recoiling from any boundary perceived."
SearingTruth

A Future of the Brave

[boatdocster]

To be fair, yes, Bush did give them the first gift of taxpayer treasure...and three months.

Obama gave them two more months. If he gives them more money, he's doing no better than his predecessor. - Posted by LawyersGuns-n-Money at 9:22 PM : Mar 31, 2009

Actually, he's doing much better. He is making GM do something their problems, which have been festering for probably 20-30 years before they get any more tax payer dollars.

Bush and Crew more or less gave it away without restrictions. Almost 6 months later and we still do not know much about the 350 Billion given away by Bush, where it's at, who received it, etc.

[WayAround]

From msnbc's website:

"General Motors Corp.?s new chief executive said Tuesday that he will not reduce his salary to $1 a year like his ousted predecessor, Rick Wagoner."

[quapawsix]

If you want to complain about Obama and any other politician go stand in the mirror and complain all you want you elected him, or not, in which case you voted for the other guy who couldn't even remember how many houses he owned. This problem is a drop in the bucket compared to the tsunami that's coming.