While Ford is reopening an engine plant, renegotiating with UAW and also announcing they are going to pay down $10 billion in debt with cash and stock options, GM is possibly looking at bankruptcy that could cost us anywhere between $40 billion and $100 billion. Gee, whats another 40 or 100 billion on top of the 800 billion???

GM auditors raise the specter of Chapter 11

 

Oh wow. This is really gettin out of control. This country is in so much debt. The new generation is gonna be payin on this for ever.

 

Nope--only until the generation after them takes over paying for all this.

Jason

 

we are spending our grandkids' money now!

 

What do you mean "WE" paleface. I ain't gettin' any of it.

GM needs to file bankruptcy to survive and the feds need to help them accomplish that. They ain't selling cars now anywa,y so I don't see how a chapter 11 can do anything but help.

If they disappear...a lot of GM vehicles will be repo'd...adding more despair the funding institutions.

 

How would GM dissolving have vehicles repoed???
GMAC (and Ditech) is owned by same financial company that owns Chrysler. Dealerships own the vehicles on their lots (actually their banks do) The lending company "owns" the vehicle the customer buys until the consumer pays off the debt. So how is this any different now of having homes and vehicles repoed by people that could not afford them in the first place and after GM is no more?

This all started with Chrysler back in the 70's when the government had to bail them out before. The fed should have left them go to file bancruptcy and possibly close the doors. No the fed decided to bail them out, then make cheap crappy vehicles, take over Jeep, AMC and Eagle, steal the technology from those companies, then have Mitsubishi make their vehicles in the late 80's early 90's. Diamler was trying to salvage that POS company, but found out soon enough that it wasnt worth saving and bailed.
I say stop wasting taxpayer money on companies like this. Ford is doing their own thing while telling the fed to mind their own business. As of right now the Fed owns Fannie Mae, Freddi Mac, 80% of AIG, 40% of Citi and who knows what else. They keep doing this, and it wont be wont be a capitalist contry much longer. We might as well start saying Commrade Obama.

 

"We" wouldn't lose anything unless GM actually went truly bankrupt after these loans went through. In reality GM would pay "us" back with interest and "we" would make money. I'd say the chances of GM actually going completely Bankrupt, i.e. Chapter 7 are slim to none.

 

It will be less costly and painful if we just let GM suffer there own just rewards. THey are now reaping what they have sown! Trust me, it wont be long where much like AIG, GM will be asking for more!!! There is no end to this cash cow, want proof, come on down to the local welfare office where my wife works managing "food stamps" Dan

 

Oh Bye the way, Gm is gonna pay us back, and we will make money????????? Really now, Galaxie i do know you are smarter than that.
The loose definition of insanity is- To continue to do the same actions, while expecting different results. I dont see anything different going on in any of these companies that have recieved money. As for the companies that the USA is now a percentage owner in...... great now men that cannot run successful businesses, career politicians, and politians friends...... all entitlement minded people are now gonna tell careeer businessmen how to conduct business! We are nowhere near bottom, and we have just scratched the surface of The current admins vision for the new America. The dow will continue to fall we will see 5000 and most likely much lower. Yeah we are taken it to the wealthy, they will learn there lesson, to bad my 401k is also part of that lesson. I break my butt day in and day out to be a wealthy 50k a year American!!!!!! Dan

 

Just to put this in perspective, Sorry if thi is a repost, I've been gone for a few weeks.....

http://www.pagetutor.com/trillion/index.html
Pete

 

Fear.

People will fear that the values on their financed GM vehicles (no matter who the funding institution is) will tank. They will also fear that they will have no warranties. They will fear that even if they can get parts the price of repair will be to high to maintain.

At the first sign of a $ 3,000.00 repair bill GM owner will tell their funding institution to come and get their broke down vehicle.

Real or imagined...fear will create a repo frenzy.