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Obama has decided bankruptcy best for GM

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posted on Mar, 31 2009 @ 11:03 PM

Obama has decided bankruptcy best for GM

President Barack Obama has determined that a prepackaged bankruptcy is the best way for General Motors Corp to restructure and become a competitive automaker, Bloomberg reported, quoting people familiar with the matter.

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

(visit the link for the full news article)

posted on Mar, 31 2009 @ 11:03 PM
The 2 big from Detroit filing bankruptcy will sound the death knell of the US auto industry. Auto industry is one of the most promising areas for future technology, with many innovations possible, like a car running on water or solar power.

GM had introduced it's electric car a few years back that was supposed to revolutionize the US auto market. However the strong oil lobby pushed it back
(visit the link for the full news article)

posted on Mar, 31 2009 @ 11:04 PM
This is fresh doom, but I do not know in what manner.

Apparently this would hurt Toyota and others, that I read somewhere.

Is this the pin in the grenade?

posted on Mar, 31 2009 @ 11:06 PM
Why is he the one deciding it?

What does he know?

posted on Mar, 31 2009 @ 11:10 PM
reply to post by pluckynoonez

Apparently this would hurt Toyota and others

On the contrary, this will help the Japanese car companies because of their superior technology and low cost manufacturing. Japanese car makers have now for decades set up factories in India and China and these manufacture the cars parts which are then exported and assembled in the US

The main problem with GM is it's huge work force and high cost of manufacturing, and adding to the woes is the current recession

posted on Mar, 31 2009 @ 11:14 PM
reply to post by sunny_2008ny

wow , this is huge , I watched him today say he was going to hold

them up, that the 2 companies accounted for 2% of gnp a year

thats a lot to lose , hoping the April 1 date has something to this story

posted on Mar, 31 2009 @ 11:16 PM
I am eagerly awaiting to see how the labor unions view this latest news. I am so glad that we have such an expert President who knows which businesses should survive and fail. With a President like Obama, who needs capitalism.

posted on Mar, 31 2009 @ 11:22 PM
reply to post by sunny_2008ny

Good point, all I know is I heard that it was a misnomer that it would help Toyota and others.

As far as doom and weight of such, the tickerforum is discussing this

By page 2 they start getting into some doom-talk.

posted on Mar, 31 2009 @ 11:28 PM
Ah, selective capitalism, how convenient of him.
Why isn't he doing the same with the freakin' banks?
When do we get to decide what's best for our country and throw the bum out?

posted on Mar, 31 2009 @ 11:29 PM
reply to post by sunny_2008ny

Wait a minute...

GM has been shedding jobs by the thousands....Union jobs.

GM relies on outside suppliers for most of the parts, just as Boeing and Airbus....OTHER companies manufacture the various components, companies like GM (and others) simply assemble them. Oh, of course, the design and engineering is done mostly 'in-house'....for competitive secrecy sake.

Before we get too 'wrapped-around-the axle' about a bankruptcy filing let's understand what it means.

IF it is a 'Chapter 11' filing....this allows the Corporation to continue to conduct business, but frees up certain obligations for certain pending debts.

Various Airlines have used this tactic, in the last two decades, and are still in business....Continental Airlines, and Northwest Airlines (there are others, but I'm trying to be short).

I believe Lee Iacoaca but Chrysler into Chap 11 BK...but not sure. (1980s)???

Point is, if a Corp has sufficient funds for short-term needs, day-to-day operations, Chap 11 sends most of their debt to the Courts....and the 'debtors' get paid pennies on the Dollar.

'Debtors' are ranked, according to a scale, determined by the Judge....some get more than others.

Here's the really bad Chap 11, Union Contracts can be, all the Republicans in the audience can rejoice!!! Just as Sen. Minority John Boehner said in front of the cameras today, why does the President not care about the fate of the GM CEO who he helped to force out??? (I'm paraphrasing...) Of course, that poor guy!!!

The (now) former CEO of GM has a $23Million! I don't know how he's gonna survive!!! Maybe foodstamps to buy his next yacht? would be interesting to compare average UAW assembly-line worker hourly wages to those paid to their counterparts at, say....Toyota or Honda, in factories that are ALSO based in the USA....they are nearly the fact, in some cases, the 'foreign' workers (I say that tongue-in-cheek, because these are Americans working on American soil for forein-based Companies) enjoy a better hourly wage and benefits.

EDIT....I meant to add....what should be pointed out is the dirty 'earmarks' that many on the Republican side have obtained in order to entice these foreign manufacturers to build plants in these politicians' Districts....(Sen. Corker of Tennessee, are you listening???)

Toyota and Honda and Nissan....they can afford to build plants, in the USA, and employ Americans....because of the tax breaks and the land breaks and the back-door dealing that goes on in this corrupt system of 'Pay-for-Play'....that is Politics.

It is not limited to any one Party, of course. However, there does seem to be a 'good-ole-boy' system in place, if you take my meaning......

[edit on 3/31/0909 by weedwhacker]

posted on Apr, 1 2009 @ 12:27 AM
Here is a another article that makes interesting reading

Condemning “a failure of leadership” from Washington to Detroit for the decline of America’s carmakers, President Barack Obama rejected the turnround plans

Here is the link to the complete article
Obama gets tough on US car industry

My observation here is what "sacrifices" does Obama expect the union to make, beyond a salary cut or extended working hours? It is easy to use that word but very hard for companies to actually implement it.

posted on Apr, 1 2009 @ 12:43 AM
I personally was laid off from my job at a tier-1 automotive supplier late last year due to the faltering automotive industry. I haven't had as much access to industry information since then, but I have not heard anything positive from my former coworkers in some time. The company I worked for is fortunate to be a supplier for quite a few different automotive companies, so they're not completely screwed thanks to the business they conduct with Japanese companies, especially Honda. They make a product for the Civic which has become a very stable source of income.

Anyway, today I found myself both amused and upset by something that came to mind regarding the situation that GM is dealing with. That thought is this:

Here's a company, GM, that is clearly struggling and has been hurting for some time though that plight has only recently come to light for most people. Yet they are expecting the US government to know how to fix everything? Are you kidding me? The US government is trillions of dollars in debt, incredibly bloated and over sized, full of waste and excess red tape, and yet people really believe that they are going to be able to fix things? Hah! If I worked for GM I would be very concerned.

posted on Apr, 1 2009 @ 12:51 AM
So could this be the new official definition of flushing money down the toilet?

Maybe I am just to darn tired to remember but Im almost certain it was not a dream. Didn't we just give the auto MFGs a good portion of our grandkids income?

Everything being so very surreal right now, heck, maybe it was a dream. This pisses me off so much that I almost dont beleive it. How does this happen. We sit on our rears and watch as trillions are promised or dispensed and then the bafoons that are suppose to be pulling us out of this mess decide its best to not follow the task to completion.

Could they honestly not have known when they gave them the first bailout from my kids income that bankruptcy was the best option?

And now all of the sudden its clear to TPTB while YOU and ME are suppose to just forget what happened yesterday.

Whats next? Banks that recieved bailout $$ will go under in the interest of the country? Yah LOL but I would not be suprised to see it happen. And then sure I might forget about the auto MFG's.. All the while the real trouble is in the background, unspoken.

I hate this web site.

posted on Apr, 1 2009 @ 12:52 AM

Originally posted by John_Q_Llama

Here's a company, GM, that is clearly struggling and has been hurting for some time though that plight has only recently come to light for most people. Yet they are expecting the US government to know how to fix everything? Are you kidding me? The US government is trillions of dollars in debt, incredibly bloated and over sized, full of waste and excess red tape, and yet people really believe that they are going to be able to fix things? Hah! If I worked for GM I would be very concerned.

It has become a comedy now, people are struggling to laugh and/or laugh with rage, but the time to laugh is far past. We are now all slaves to these "public officials" that are supposedly there for us, and yet every indication is that they are for the oligarchy.

posted on Apr, 1 2009 @ 01:00 AM
Let the 3 go down and you'll kill probably 80% of all car-related jobs in the US... which means a hell lot of jobs since 1 in 11 workers is in the auto industry one way or the other.

So your ``8.1%`` unemployment numbers will be total BS, even if they already are.

Nationalize them. Restructure them.

And this is so ridiculous... Obama is screaming at GM while GM is important for the industrial production of the US, and he gives everything he wants to the banks without saying anything or firing anyone.

Let JP Morgan, Citi, BAC and GS go in bankruptcy. The scum who are in CDS. Then I'll praise Obama... until then, Obama can go make love to Cheney.

[edit on 1-4-2009 by Vitchilo]

posted on Apr, 1 2009 @ 01:09 AM
Well, Ford hasnt yet tossed in the regulatory towel yet, so-to-speak.

Makes me contemplate whether The Blue Bowtie is still an option and/or an opportunity still.

posted on Apr, 1 2009 @ 01:37 AM
Wait wait wait, wasnt Obama supposed to create more jobs and bring us out of the stooper we are in?

Oh ya deciding to let GM go is going to create a lot of jobs, oh not to mention the loss of 2 percent GDP is going to REALLY help us pay off the money America owes, not to mention the money hes been spending

Oh yeah and i forgot, all the people who voted Obama wanted him to pull troops out, we were spending so much to keep them there......umm how much is he planning on spending now in Afghanistan .......oh....right......

Yeah good call on closing down a company that helps pay off all those lil bills

but hey, what do I know, im just an American citizen , its none of my business

posted on Apr, 1 2009 @ 02:02 AM
reply to post by ManBehindTheMask off-topic....but think about it.....

The real danger, the 'Taliban'....was, and still is, in Afghanistan.

Iraq....far too many precious resources devoted there....the 'stated' reason was the "fear" of WMD....shown to be a boondoggle....

The actual 'political' intent, it would seem, was likely strategic....IF the area had been cleverly turned to be an "ALLY"....but, in hindsight, it was a terrible disaster in the aftermath....

How this comes back to topic??? Well, here it is: The amount of money already thrown down the hole that is Iraq is hundreds of times greater than what relatively small amount is needed to help a bastion of American Industry get through a small hard spell.

A Chapter 11 Bankruptcy is NOT the bad thing the right wing-nuts might wish you to believe.

As I've pointed out before, many Companies, including several Airlines, have successfully negotiated Chap 11....saving jobs, ultimately.

As to GM? Well....the CEO, poor guy....he leaves with a $23 Million pension.

Betcha the right wing-nut pundits don't mention that!!!!

posted on Apr, 1 2009 @ 02:17 AM

The real danger, the 'Taliban'....was, and still is, in Afghanistan.

The real danger? ARE YOU KIDDING? If the Talibans are the real dangers, why is Karzai and his crazies passing laws legalising rape are supported? Because it's democracy? And there's talk of allowing the talibans to form a party to run at the next election. For god sake WAKE UP.

The Talibans are no danger. They are only danger to Pakistan and Iran. No one else. The Talibans were doing their own thing starting 1994 while supported by the ISI, the pakistani branch of the CIA.

It's worse on EVERY LEVEL in Afghanistan NOW than when we invaded. Obama is doing everything he can to give them more members by bombing Pakistan.

If you believe the 9/11 fairy tale, you should know that the hijackers came from Saudi Arabia and are a bunch of wahhabists, the most extremist branch of islam. The root of wahabism is in Saudi Arabia, not Afghanistan. The talibans were only bombed because they ``according to the US government`` didn't want to give Ben Laden to NATO. It doesn't matter that the war was planned since 1998 and the order to invade on Bush's desk on september 10,2001 or that troops were massed around afghanistan for months prior to the invasion.

You're in afghanistan for natural gas and oil pipelines, drugs and overall strategic dominance of NATO. NOTHING ELSE. Not for democracy, NOT for freedom, NOT for anti-terrorism.

[edit on 1-4-2009 by Vitchilo]

posted on Apr, 1 2009 @ 02:22 AM
actually the "right wing nut" news programs mention that all day today, has nothing to do with it.

In my eyes thats pretty lite for what the guy could get in his "severence" package , considering he as worked very hard for that company for a long time.

But that is neither here nor there, the fact that Obama has spent all this money on bailouts, and then decided to bankrupt a major player here begs the question.......where did the money go? He is consistent on spending rediculous amounts of money on pet projects, and bailouts like this with reckless abandon.

Then fterall that he decides he knows whats best, and he doesnt...

The left wing nuts need to put this bush bull crap outof their heads and quit pointing the finger, OBAMA IS RESPONSIBLE FOR HIS OWN ACTIONS.

Spending more and more and more and then deciding he knows whats best for Major Industries that have such a huge impact on our GDP is rediculous.

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