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

[EBH]

Here we go folks. Instead of sending these guys to court, watch congress and 0bama make a mess of this.

[raybbr]

Instead of sending these guys to court...

Which "guys"?

[Spktyr]

Then we can hang the GM failure on them. Win-win situation.

The phrase to repeat will be “Obama and the Dems killed GM.”

[Wyatt's Torch]

as the White House said bankruptcy was a possibility for General Motors and Chrysler

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.

[Texas Fossil]

Imagine this:

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.

[Texas Fossil]

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.

[LS]

Wyatt, you're not agreeing with Obama, really. GM needs to "go bankrupt" in a market process where it's freakin' VOLT cars are discredited and dumped. Instead, they are getting rid of other lines that aren't PC, like Hummer. Now, I don't know if Hummer is profitable, but I do know that VOLT isn't, and that Waggoner told Obama that. Moreover, it needs to be clear that the reason GM goes bankrupt is the UNIONS.

That won't be as clear in this case.

[cripplecreek]

Looking like a triple digit day.

[Dixie Yooper]

I heard on the way in to work on The Wall Street Report that the Federal Government will back GM’s car warranties.

[Liberty Ship]

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!

[momincombatboots]

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!

[Total Package]

I have been predicting that GM is working toward closing all it’s North American plants, because there other divisions are very profitable.

[scooby321]

Actually , I hate to say but they are right these companies need to go bankrupt.

[WorkerbeeCitizen]

Looking like a triple digit day.

Yep - DOWN

[Wyatt's Torch]

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.

[EBH]

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.

[Extremely Extreme Extremist]

GM should have declared bankruptcy last year and moved all operations overseas.

[EBH]

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.

[trumandogz]

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.

[LS]

Yep. We've all said the same thing about SS and medicare, but who's listening? One of the ongoing misconceptions about these programs is "we'll have time" to slowly correct "if we see a problem coming." Er, no. What this current credit collapse shows is that with government interference, markets usually conceal their problems and snap back hard. There is no "soft landing" in such cases.

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.