It wonât go bankrupt, the Government understands how critical the labor of these companies is at this time of crisis, the nation wouldnât be able to afford losing a significant amount of jobs due to this reason, besides, we all know Obama, without taking office is already getting his hands into the situation and he will go as far as it is required.
I agree. There is a zero chance that GM will go bankrupt (actually -10 chance). It is a question of gamesmanship. The union has to be forced to the table and the only way is if the Republicans play hardball. The Democrats can not (will not). I can't believe that it always has to come down to brinkmanship. It's a crazy life, a crazy economy, a crazy industry, and a very crazy way to live.
Ouch I wonder what the CDS fallout of this disaster is going to be. Maybe we finally get capitulation as all the cockroaches holding the CDS's will finally come into the light as they desperately SELL EVERYTHING trying to raise money to pay for these CDS'...........scary times!..... or we'll just sell off a bit and a miraculous reversal will occur by the end of the day and we'll find out monday that TARP is going to be used to save the companies..
Anyone want to guess what happens in the morning? The congress has decided to go home for the rest of the year. Bush doesn't want to use TARP money. Does the congress blink, or Bush, or neither?
i'm beginning to think that the UAW contributed mucho money to the democrats, and now, feel as though the democrats have to come to their rescue.
Now that gov voted down the GM bailout we should see the real pain when AIG ( or should I say USA tax payers) are on the hook to cover all the GM CDSâs. Another interesting blog on this.. AIG's Speculative CDS Bets http://www.portfolio.com/views/blogs/market-movers/2008/12/10/aigs-speculative-cds-bets
This is actually the amusing part of this fiasco. Typical dumbass on main street is happy about not having to pay the 14 billion in loans to these guys but wait till we all the get the bill to bailout the massive CDS damage this is gonna cause to a lot of financials. A lot more than a measly 14 billion I bet.
the average worker doesn't own any financial stocks. and only pays taxes. no free lunches for anyone.
Actually the avg worker DOES own financial stocks...AIG for instance. Depending on the CDS damage there will be more banks lining up for TARP money and more bailouts for these financials which will come from the tax payer (ie avg worker). I'm not sure how big the CDS exposure is specially with Citi but this could get pretty damn ugly and the tax payer (avg worker) WILL take it on the chin for a lot more than the 14 billion.