U.S. stock futures slump as GM may go bankrupt

Market Watch ^ | 03/30/2009 | Steve Goldstein

[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

[bvw]

Can a patriotic American buy a Fascist-made car?

[Leisler]

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.

[Leisler]

Bush got very little support for any bailout here.

[LibLieSlayer]

Having been a GM man all of my life and having purchased many cars and trucks from them... I will NEVER again buy another vehicle from them. They can go broke or become a nationalized, union, commie, marxist, sharia car maker. Never again will I ever buy anything from that company... or any other company taking money from the gooberment.

LLS

[Leisler]

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.

[trumandogz]

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.

[LS]

Yep, I’ve seriously considered a “classic” Camaro or something for my “new” car. My wife dislikes the idea cause we have snow. Ugh.

[LibLieSlayer]

My criticism is that the gooberment ever became involved in the first place. You are 100% wrong in painting many of us and what it is that we truly think... I feel nothing but contempt for that marxist, muzzie pos hussein... got it?

LLS

[03A3]

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.

Sounds like Cuba to me.

[M-cubed]

Yup.........2nd leg down....on our way to 6000 on the Dow

[olezip]

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.

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.

[6SJ7]

"If you put the federal government in charge of the Sahara Desert, in five years there'd be a shortage of sand."
Milton Friedman

[Wyatt's Torch]

You are correct (Pension Benefit Guarantee Corp). The "good" news for the taxpayers is that the benefits will be significantly reduced from the current pension plan that GM has in place. But that beats continuous multi-billion bailouts that only slow down the rate of death not cure the patient.

[Spktyr]

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.

[Wyatt's Torch]

Ol’ Milton was a gem....

[rbg81]

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.

[Spktyr]

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.

[Spktyr]

Hummer isn’t even vaguely profitable, and they have sold very few vehicles in the past three years.

[mylife]

When can we expect a roll out from “congressional motors”?

[bert]

You are correct but not stating the reason entirely. The reason GM will be salvaged is that if GM fails, Michigan dies. Ohio dies. Indiana dies.

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 ?”