Obama thinks structured bankruptcy for GM is inevitable

[frostedflakes]

Originally posted by: Lothar
Which begs the question...Will we get our money back?

How do we expect to recover our money back from a private entity such as Chrysler?

If the government is going to be managing the bankruptcy, I'd assume taxpayer loans to GM will receive high priority on the list of debts to be paid off. Same for Chrysler.

Honestly I think this is the best course of action. Hopefully bankruptcy will allow GM to make the difficult cuts necessary to streamline their operations. I almost wonder if this is just a bluff on Obama's part in the hopes of lighting a fire under the asses of GM and UAW management, though. I guess we'll see soon enough.

 

[Budmantom]

Originally posted by: Lothar

Originally posted by: Budmantom

Originally posted by: Lothar

Originally posted by: Budmantom
Republicans wanted them to go through bankruptcy before we gave them the billions.

Obama has a way of getting the worst out of both scenarios.

Wasn't it Bush who originally loaned them money in the 1st place claiming that "he didn't want to leave a mess for Obama" in late December?
Congress rejected giving them any bailout money in early december which left the Bush white house scrambling trying to ensure their legacy.

That's how I remembered the events.

I thought it was at the request of Obama but I could be wrong.

I'm not so sure about that.

The point is even if it was, he didn't have to honor the request or sign the dotted line.
The buck stops with him. There shouldn't be any "passing the buck" to Obama or other democrats here.

Obama gave them more money and is now talking about bankrupts, Obama is now firing CEO's and you think the buck stops with Bush?

While I don't agree with Bush I'm not sure it's his fault...... butt Bush...

 

[Budmantom]

Originally posted by: K3N
Obama: Reincarnation of the anti-industrial jimmy carter.

Oh the good old days of a "moderate" democrat.

 

[LTC8K6]

Obama's restructuring plan will probably pander to the UAW and leave it largely intact in structure and benefits.

 

[coolVariable]

Originally posted by: BigJelly

Originally posted by: sunzt
GM got billions in bailout money to give this company a hail mary chance to restructure, but not enough balls on all sides of the table (union, management, debt holders) to get any real sacrifices. This is what has to happen to prevent them from becoming permanent government leeches.

Of course, republicans will say this is another example of government running our lives and whine and complain. I hope they remember that this is what they originally wanted in November.

Bloomberg

Obama Said to Conclude Bankruptcy Best Option for GM, Chrysler

March 31 (Bloomberg) -- President Barack Obama has determined that a prepackaged bankruptcy is the best way for General Motors Corp. to restructure and become a competitive automaker, people familiar with the matter said.

Obama also is prepared to let Chrysler LLC go bankrupt and be sold off piecemeal if the third-largest U.S. automaker can?t form an alliance with Fiat SpA, said members of Congress who have been briefed on the subject and two other people familiar with the administration?s deliberations.

While Obama two days ago gave GM 60 days to come up with deeper cost and debt reductions than the biggest U.S. automaker proposed in a viability plan submitted last month, the ?quick and surgical? bankruptcy his administration described as an option appears to be inevitable, the people said. Obama personally signed off on asking GM Chief Executive Officer Rick Wagoner to step down, as he did on March 29, they said.

?Our focus is on accelerating the speed of our operational restructuring and reducing liabilities and debt on the balance sheet,? GM spokeswoman Renee Rashid-Merem said in an e-mail. ?GM will take whatever steps are necessary to successfully restructure our company.?

Chrysler spokesman Todd Goyer didn?t immediately comment.

i actually agree with allowing GM to go bankrupt because it could get the UAW off its back, then AND ONLY THEN could GM be profitable. BUT obama has shown no signs that he will make the UAW compromise--hence the term of "surgical" bankruptcy which leaves the UAW off the hook on compromising.

i may be wrong but obama has already shown that he will most likely take the side of the unions.

correct.

 

[coolVariable]

That's it. If they do this: PLEASE DON'T BUY AMERICAN!