Skip to comments.U.S. stock futures slump as GM may go bankrupt
Posted on 03/30/2009 3:24:28 AM PDT by EBH
LONDON (MarketWatch) -- U.S. stock futures slumped on Monday, as the White House said bankruptcy was a possibility for General Motors and Chrysler while hopes for a new round of global stimulus spending appear thwarted.
S&P 500 futures fell 21.4 points to 794.70 and Nasdaq 100 futures fell 30.75 points to 1,225.20. Dow industrial futures dropped 187 points...
...Wagoner's apparent successor, COO Fritz Henderson, wasn't warmly received
(Excerpt) Read more at marketwatch.com ...
Then we can hang the GM failure on them. Win-win situation.
The phrase to repeat will be “Obama and the Dems killed GM.”
Finally I agree with the Obamarxist on something. GM and Chrysler need to go bankrupt. the have to get out from under the crushing burdens of their pension and retiree healthcare liabilities. Now, the Obamarxist will not remedy the situation properly and force the elimination of the unions that have destroyed these companies (he'll say that the unions should be stronger) but they do need to restructure each of the companies. They cannot compete under these cost disadvantages placed upon them by suicidal unions.
A little mouse character (Obozo) standing in a great temple leaning against one of the supporting columns like Sampson, and by simply “squeeking” the temple collapses.
Talk about Communist distruction of capital, assets, and a Nation.
Much of the rest of our manufacturing industry is under the same burden as per regulation and compliance costs.
It is a prescription for disaster, that has been filled.
That won't be as clear in this case.
Looking like a triple digit day.
Obama will not let it go bankrupt. He will keep it alive on his terms. It will become more and more expensive to keep it going and he will keep pouring our money in. Wealth transfer to the UAW. He will bankrupt the USA before he lets GM bankrupt. Because the deliberate destruction of the whole country is his plan. Finally — a politician who keeps his promises!!! BROTHER, YOU ASKED FOR IT!
Well maybe Obama will send Wall St some more free money. Every time there is free money announced the stocks jump up, then they find out there are strings, and it goes down. Wall Street Welfare!
I have been predicting that GM is working toward closing all it’s North American plants, because there other divisions are very profitable.
Actually , I hate to say but they are right these companies need to go bankrupt.
Yep - DOWN
I know...I was just trying to say one positive thing about Obamarx and this is as close as I will ever come...;-)
It really is funny because i can remember discussion about the unions bankrupting the Big 3 back in college in the 1980’s. This is not a recent thing and has very little to do with the current financial meltdown. It is a structural flaw in their labor model and can only be fixed through restructuring of the pension/health obligations and the elimination of the unions. Bush should have forced bankruptcy to accomplish that. Instead, the government is going to end up owning 3 car companies that will work as well as the Post Office.
Bankrupt, Chapter 11, Chapter 7 in Court...
Not under the direction of Congress or 0bama.
Beware of the new kind of ‘bankruptcy’ here that really reads as Nationalization.
GM should have declared bankruptcy last year and moved all operations overseas.
Indeed they should have, but they did not. Instead they played willing right into the hands of socialism. Go ahead and try and get them into the right arena now. It ain’t gonna happen.
0bama has gots himself a car company to play with.
I never thought I would see Freepers criticizing an American President for refusing to dump 22 billion dollars into an auto company.
But I guess it is an upside down world, so called conservatives supported Bush when he gave billions to the Big 3 and now will oppose Obama for cutting off the Federal pipeline of tax dollars to GM.
SS and medicare will just go broke, like the car companies. There will be no "reform." I'm so sick of that word. The time for "reform" was in the 1980s. No one took the opportunity, not even Reagan really.
Can a patriotic American buy a Fascist-made car?
I believe the pensions are guaranteed by the Federal gooberment, so basically, GM will be free of them and us, mostly non union workers, many with out any pensions, will be taxed to provide the pensions for mostly Democrat union workers. Just like local, state and Federal workers pensions that are way, way underfunded.
Bush got very little support for any bailout here.
Any automotive needs will be supplied by Ford( maybe ) and Japanese, German automaker.
Besides, there is no reason that modern cars shouldn’t last 30 years. I think nothing of a ten year old car. Twenty is even fine. This should be good for auto parts stores, rebuild companies and small mechanics shops.
I checked out old Cadillac style Jeep Wagoneers. There are a couple of outfits that totally rebuild them. Very very nice and less money than a stripped CJ.
Yes, Bush got little support when he bailed out the Big 3 but the objections were not all that loud.
I don’t think he will do it, but if Obama lets GM go down, it will be a good move.
Yep, I’ve seriously considered a “classic” Camaro or something for my “new” car. My wife dislikes the idea cause we have snow. Ugh.
Sounds like Cuba to me.
Yup.........2nd leg down....on our way to 6000 on the Dow
Pouring more taxpayers money into a moribund industry is just "throwing good money after bad." The government will make a mess of this situation.
A better role for the government would be to protect GM from its creditors during a Chapter 11 bankruptcy filing. GM managers, economists, and financial professionals know what needs to be accomplished to restore GM to fiscal success, not U. S. government officials anxious to try out their new Marxist policies.
Oh, no, you misunderstand.
I don’t want him to dump 22 billion dollars down that hole.
I also want him to take the blame for “killing GM.”
It’s the same tactic the lefties used so successfully to get into office. And it’s what we have to do if we want to win in 2010 - we have to maneuver the Dems into lose-lose scenarios. Just like this one.
Ol’ Milton was a gem....
Here’s where I disagree with just about everyone here. We gave over $130B to AIG and about $267B to Citigroup without batting an eye. These companies don’t make anything. In AIG’s case, that $$ is going to banks overseas. What we have given to GM and Chrysler is chump change in comparison. Yet these are industries that must somehow be revampled and saved—our industrial base depends on it. I just think our logic and priorities are ass backwards.
As a former Wagoneer owner, I can tell you that that’s a horrible idea - especially as Chrysler ended “normal” SJ Wagoneer parts support a couple of years back and is simply selling through inventory now with no intent to make more parts.
Hummer isn’t even vaguely profitable, and they have sold very few vehicles in the past three years.
When can we expect a roll out from “congressional motors”?
There is a serious dilemma with the UAW. Everyone knows that until the union stranglehold is released there is no hope. The question remaining is “ what must stockholders/debtors do to assuage the UAW ?”
So, in 2010 you want the GOP to run on a platform of : “Obama should have Nationalized GM.:
Perhaps, in 2010 the GOP can also run on the fact that Bush nationalized AIG and gave a trillion dollars to the Banks and Wall Street.
You see, I hate Socialism not matter what political party forces it upon me and my family.
GM and Chrysler need to go bankrupt and AIG and banks the market will cure itself not the feds.
I agree completely. Having the feds involved is only bad news as they can only screw things up worse.
Are you fricking kidding me? Everyone and their momma here was railing against ALL bailouts - including AIG and Citi.
Oh, no. The platform should be nice and vague and go something like “Obama Destroyed American Industry”.
After all, if you can win with “Hope And Change”, you don’t have to be real specific, do you?
Stockholders, who hold nothing, Bush/Obama/Congress took the ‘hold’ part away. So that that. Bond holders will get what they are told they will get. (Maybe in twenty years a Federal court will award them something)
So, really what we are left with is the UAW, Obama, Republican cowardly pukes, and non union taxpayers with hose size needles in their arms draining their work, effort, blood and taxes.
This is what YOU support.
With out GM/Chrysler dead, Ford will be next. We could of had no bailouts, dead GM/Chrysler an infused Ford, saved 20-30 billion so far, and a 100+ billion dollars to come, instead we get a weak GM, weak Chrysler, weak Ford, strong UAW, and mewing cowardly, timorous RINOS wetting their panties while what happens to the auto companies gets replicated like a virus throughout the economy.
It is not a matter of what I support as it is the vision I see. From a theoretical business stand point, the fate of GM should be left to the market. There is some question in my mind that Chrysler as a private company will get the same exact treatment, but the market should decide.
From a political standpoint, GM can not fail because Michigan goes down the tubes. The problems and costs of such an event are unthinkable. The dominoes of Ohio and Indiana and possibly Illinois would likely fall as well.
Katrina is trivial when compared to the catastrophe.
there = their... coffee
Relax—I’m referring to the US Government, not the Freepers. I realize if it was up to the Freepers, we probably wouldn’t have spent a dime on the bailout.