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Stricken General Motors to file for bankruptcy

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posted on May, 31 2009 @ 06:33 PM
Just came across this article.
Stricken General Motors to file for bankruptcy

The bankruptcy of General Motors is expected to send a shiver of fear through financial markets today. The stricken American car giant will this morning file for protection from its creditors, who last night agreed to exchange their loans for new shares. Although widely expected, the move could undermine the tentative recovery seen on bond markets over recent months.

I wonder what kind of effect this will have on the Markets Today??

[edit on 31/5/2009 by wycky]

posted on May, 31 2009 @ 06:36 PM
reply to post by wycky

The general consensus among many (including myself) that GM BK has already been priced into the marketplace for quite a while.

In fact it is my opinion that we rally on this news, bc the restructuring is going to be better in the long run...

GM will spin off an IPO within the next 12-24 months according to some experts

posted on May, 31 2009 @ 06:43 PM
It honestly doesnt matter what the markets think anymore.

The truth of the matter is that this is going to screw over our economy.

Suppliers are going to go bankrupt.
People are going to lose their jobs.
College funds are going to be cut down by 90%.

It's the effect on the people I am worried about.

posted on May, 31 2009 @ 07:07 PM
Better go out and sell my GM I own. The price for that might drop also!

posted on May, 31 2009 @ 08:17 PM

Originally posted by Piranha
Better go out and sell my GM I own. The price for that might drop also!

Hey you never know, it might become a collectors.

posted on May, 31 2009 @ 08:22 PM
Had we let GM file bankruptcy without interference months ago, they would have reorganized, and likely been once again a viable company.

Now, some $70Billion later, the UAW owns majority stock with the US government?

You've gotta be ****ing me.

One thing to knock a man down, but to then run over him, and then back up over him . . .

posted on May, 31 2009 @ 08:25 PM
This could be seen miles away...they were already projecting a possible bankruptcy back in '05. It seems to me the hardest hit will be the midwest...mainly because that's where GM ops have been the strongest. out flux of midwesterners...

[edit on 31-5-2009 by laiguana]

posted on May, 31 2009 @ 08:31 PM
reply to post by dooper

Remember GM and company went to the government with hat in hand begging. Actually while I am not exactly thrilled about the whole thing I tend to think it would be far worse without governmental involvement. After all they are guarenteeing their warranties... if that alone was not there it would be far worse.

No company should be allowed to get so large that their failure would adversely affect the national economy.

posted on May, 31 2009 @ 08:43 PM
Pretty soon everything will be bankrupt and nationalized.

Looks like the commies won after all! If so, the last 20 "post-Communist" years have been the biggest "head fake" in history.

posted on May, 31 2009 @ 09:34 PM
Bankruptcy is what we need for alot of companys....because it allows DEBT TO WIPED out......70% of GM's in this case

but i found that the gov't was doing some potentially "shady" things

from a L.A times article .....which seems to be "ho hum" about the gov't potential changing the terms of what = a bondholder agreement

Bondholders have until 2 p.m. Pacific time Saturday to accept the deal. But, unlike in the earlier proposal, which required 90% of bondholders to accept before it could be implemented, there is no set percentage needed for the latest offer, the administration official said. The administration will make a "judgment call" when the offer expires and decide whether the participation is acceptable.

first 90 % need ...?? it's a judgement call LOFL

[edit on 31-5-2009 by cpdaman]

posted on May, 31 2009 @ 09:53 PM
Another point to consider in connection with GM is that they make a great deal of US military hardware, such as tanks, for example.

Any plan which puts the majority of GM or a large chunk thereof in foreign hands should be undertaken with extreme caution in light of this fact. There was some talk of China taking over much or most of GM, for example. Does the US really want its tanks to be made by a Chinese-owned company? I suppose this is a rhetorical question because we all know that nobody with political or financial power these days cares a whit about anything other than lining their own pockets and feasting like vultures off the carcass of the USA. But the rest of us will have to live with any decisions made along these lines...

posted on May, 31 2009 @ 11:14 PM
reply to post by grover

You are right, no company should be permitted to get that big. That is why there was such a thing as anti-trust laws. These laws don't exist anymore.

All of our computers run one of two operating systems - Windows or Mac. Linux is not a real operating system.

Three car companies made all US built cars even thought they had like 15 different lables for them.

There are like two or three major oil companies.

Walmart sells everything.

Now only BestBuy and a few struggling regional retailers remain for all of our electronics.

There is one bank, the Fed, and its off spring, JP Morgan Chase, Wells Fargo, and Citi.

Even XM and Sirrus are one company now.

There is no competition. There is just the government and nothing else. People just don't see it. The NWO is already here, they are just good at hiding themselves. As Kevin Spacey said in the Usual Suspects, "The greatest trick the Devil ever pulled was convincing the world he didn't exist."

We are all just sheep being lead to the slaughter.

posted on Jun, 1 2009 @ 03:26 AM
You know, there are GM retirees who have been drawing 40K and 50K "salaries" for thirty years now after leaving the company, plus all kinds of bells and whistles like health insurance. You dish out those kinds of promises to people and there is no question you will go bankrupt.

I sure hope that if this goes on the taxpayer dime that nonsense gets trimmed to the bone. The only kind of "retirement plan" that makes sense for most people these days involves a shotgun, a hotel room, and a bottle of vodka. Why should the rest of us poor slobs be on the hook to pay kingly retirement benefits to a bunch of union retirees who haven't lifted a socket wrench since Nixon was president?

posted on Jun, 1 2009 @ 11:40 AM
reply to post by Tentickles

And one aspect -- almost always overlooked -- is that this is a threat to Ford. Chrysler and GM are going to take suppliers into bankruptcy with them, and the suppliers could bring Ford along for the ride. A domino effect.

This is why Ford was lobbying congress for an auto bailout even though they were a viable company and didn't need or accept government loans.

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