So I've been reading that even with a $35 billion bailout , the tiny 3 will need another bailout in 2009. But as large as these bailouts are, chapter 11 would be far more costly. Don't forget GM's liabilities exceed assets by close to $60 billion and that was before the damn financial crisis!!! So regardless of what bullshit happens on Bailout Sunday, the tiny 3 will eventually face liquidation! This is the greatest news I've heard in weeks! Those fat greedy motherfuckers in Michigan are finally going to die.
Pretty good business plan... the unions push management to the wall, management has to resort to making profits off of gas guzzling monstrosities and hope for low fuel costs.. when the shtf go bk for awhile, shake out the creditors [those non-union small business guys, you know, subcontractors, the Republicans], and when all the dust settles and cars are selling again... it's a union victory!! There was a company way back in the day, Lockwood Locks... they had a union shop, went out on strike, negotiations went on for two years.. finally everything was settled, Lockwood called back all their beloved union workers, and at the end of the first day, after all the union workers had quit their other jobs to come back to their beloved Lockwood, Lockwood announced they were going out of business and told everybody to get the f$%k out... I'd like to see GM, Ford, and Chrysler all do that. and give the finger to the mayor of Detroit [do they still have a mayor, do they need one?] on their way out of town...
I personally agree with the bailout *only if* they can turn to be profitable and beneficial for taxpayers. However, the bailout feels like just delaying the inevitable. 2 - 3 years from now they'll come back and ask for more bailouts. Think about how much do average joes make in a year and why do they have to bail out CEOs and pay them millions in salary. My question is: who's going to buy their cars? There's still plenty of inventory out there and lower gas prices aren't going to make any difference, imho. Nobody's rushing to buy a new car. I don't feel like buying a new car even with 0% financing. Who'd bail me out when my V, GOOG, RIMM got whacked? This bailout drama is getting more ridiculous.
give it 2 to 3 months. Plus, if they are bailed out, I hope shareholders are wiped out to zero. It serves them right for not being short such piece of shit companies.
Anyone else shorting or buying puts on GM? I cant see any scenario in which the sharesholders arent wiped out eventually. Congress was talking about bond holders taking a haircut for the bailout, since when do bond holders lose before shareholders are wiped out? Seems like free $ to me.
We'll see how thrilled you are to see them go under when the the value of your home is about 1/3 that it is now. You think you won't be affected by a depression? Think again!
So I'm unAmerican for shorting GM? I think the only way for GM to survive ( long term ) is Chapter 11. GM needs a complete overhaul in its labor contracts, pension & health care obligations, dealer network etc. I cant see any possible way that stock holders arent wiped out in any possible scenario. GM flew to Washington in a private jet asking for 8b & no plan...two weeks later they drive to Washington but now need 8b in JUST THE NEXT 2 MONTHS to survive. GM stockholders are toast.