Thanks to our great leader.
Posted on 05/19/2009 12:29:20 PM PDT by autumnraine
Edited on 05/19/2009 2:07:32 PM PDT by Admin Moderator. [history]
I am speechless. Are we Russia yet?
NEW YORK, May 19 (Reuters) - General Motors Corp's (GM.N) plan for a bankruptcy filing involves a quick sale of the company's healthy assets to a new company initially owned by the U.S. government, a source familiar with the situation said on Tuesday. The source, who would not be named because he was not cleared to speak with the media, did not specify a purchase price. The new company is expected to honor the claims of secured lenders, possibly in full, according to the source. The remaining assets of GM would stay in bankruptcy protection to satisfy other outstanding claims. GM has about $6 billion in secured debt, including a secured revolving credit and bank debt. The government's plans include giving stakes in the new company to GM's union and bondholders, although the ownership structure of the company is still being negotiated, said the source who is familiar with the company's plans. In addition, the government would extend a credit line to the new company and forgive the bulk of the $15.4 billion in emergency loans that the U.S. has already provided to GM, the source said.
The government has given GM until June 1 to restructure its operations to lower its debt burden and employee costs.
If those talks failed, the company has said it would follow rival Chrysler LLC into bankruptcy.............
No, Russia has learned and backed away from Socialism.
Read the fine article. It talks of creating a new company, and the gov taking over GM then selling to this “new” company any “healthy” assets. Guess this means the “unhealthy” assets would twist in the wind or be transferred to the same imaginary hole where the gov is storing the “toxic” assets it bought.
Best of luck to Government Motors. I’ll move to Russia before I buy a car from Hussein Obama.
If someone told me that Obama would nationalize the banks and the auto industry in his first 150 days, I would have thought them crazy. This is truly astonishing.
Thanks to our great leader.
If no /sarc, how has Russia shied away from socialism? (Honest question)
“The board of the new company would be established with the tacit approval of the government.”
Obama puppets no doubt.....here comes shoe sized cars
You mean the taxpayers would be left holding the bag?
Just wait until the end of Obama’s second term.... we’ll be worse off than Venezuela...
I have always bought GM cars in the past but will no longer do so. I suspect there are a lot of people who feel the way we do.
Just like in Britain after WW-II, major industries were forced to sell themselves to the government. These government run British industries, like coal mining, were run with enormous deficits solely to benefit the unions and crippled the British economy for decades. It took Margaret Thatcher to undo this mess and restore at least some sanity to the British economy. Let us hope we can have another Thatcher or Reagan to quickly lead us out of this mess.
Calf-rope!
>>I am speechless. Are we Russia yet?<<
No we’re aiming to be the people Russia makes fun of for not being capitalist enough.
Worse. Healthy assets will be handed off to the UNION.
Sigh. When lunatics run the asylum...
“Well, Obami, here’s another fine mess you’ve gotten me into!”
This can’t be a surprise, it’s very similar in the idea to the sale to Fiat in the Chrysler bankruptcy. However, where that one may well fly, this one is probably a bridge to far in terms of being used to get around the requirements of a reorganization plan.
The list, ping
Does that become part of the national debt?
How will this relate to national healthcare?
Will there be any money left for new gps satellites, because the roads here in the Tidewater area aren't making sense to me yet...
The soft tyranny we are all familiar with is rapidly becoming a true hard tyranny where more and more citizens have reason to fear their government.
With acorn and the marxism, all future "elections" will be as honest as chavez - leader for life unless we stand-up, comrades and our friends smith & wesson lead us to independence!
Wolverines!
I have to try and remember a time (not too long ago) when ALL of what is happening now was unthinkable.
We’re just lucky we have Mercury vehicles, a division of Ford.
As I understand it though, Ford may take government funds in the near future. We can see how well that worked out for GM and Chrysler. Ford executives would have to have their heads examined if they were to follow that model.
Banks, lending institutions... what’s next?
A little more like Germany or Italy from the 1930’s I think. This is a new form of ism Obamunism - Il Duce meets Marx. State ownership without the on-time trains.
And illegal to boot.
Obama can keep his cars!
Aren’t there ANY laws being broken by this dictator?
If so, these companies should be fighting these dictates right up to the supreme court.
What is going on?
Wow. I’ll be taking this link and putting it into every article bashing Rush Limbaugh for his, “I hope he fails,” comment that I can.
Rush predicted this and wanted it to fail. THAT’S why they are attempting to assassinate him. He’s a for-profit prophet.
That’s it!! From discharge from the Navy until now at 74, I’ve owned ONLY GM Oldsmobiles. (Except for a Ford Crown Vic I got from my brother-in-law for $12.50). Never even considered anything else.
That’s it!! Now I find something made in Tennessee, and I do not care where the company is from. So long as Americans are hired to put the thing together, I’m looking at it.
GM now stand for “Gone Manic”.
One consolation...the voter is getting what he voted for, but not quite what was expected.
GM = Government Mafia
“I have always bought GM cars in the past but will no longer do so. I suspect there are a lot of people who feel the way we do.”
Same here. From my first car at 17 y.o. to the present at 43 have had 12 Chevy’s. Not anymore! I’ve been looking for a reason to get that new Lexus.
The Nazis did this with Jewish assets. I guess the executives of these companies are in an analagous situation as the Jews - scapegoats for a government takeover.
Socialism is here!
Not how I would envision a bankrupty proceding. Bond holders get first dibs of course that would require contract law to be upheld.
AHAHAHAHAHAHAHAHAHHAHAHAHHAHAHA!
Yeah. I think he was supposed to show he was a natural citizen of the USA.
What happens to German imports? (Porsche, Benz, BMW)
Same here. I was looking for another GM pickup since the hail destroyed mine, but will go with something else.
“Just wait until the end of Obama’s second term.... we’ll be worse off than Venezuela...”
Oh, easily. At least Venezuela is smart enough to keep producing oil. The government and the environmentalists don’t want us to do that here.
So now GM is being broken up and sold to the government. So if we didn’t pass 0bama’s stimulus package in order to save GM, what would have been different?
Looks like that RATS will have another sinkhole to grab off sizeable contributions to various campaigns & pet projects, courtesy of the taxpayers.
The government’s plans include giving stakes in the new company to GM’s union and bondholders, although the ownership structure of the company is still being negotiated, said the source who is familiar with the company’s plans.
In addition, the government would extend a credit line to the new company and forgive the bulk of the $15.4 billion in emergency loans that the U.S. has already provided to GM, the source said.
It’ll just be another money pit for taxpayers - a way to reward benefactors at the expense of the entire country.
They just should have gone bankrupt the usual way, dumped the unions, negotiated down debt and got on with business.
“A Yugo in every pothole!”
“Aren’t there ANY laws being broken by this dictator?
If so, these companies should be fighting these dictates right up to the supreme court.
What is going on?”
Odumbo has everybody that’s taken bailout money over a barrel.
If the board members are of the same quality as the people Obama has been able to attract to his regime, the new-GM stock will not sell very well.
It game over for GM and Chrysler, they are done for. There’s nothing left but the wasting away for them.
Ford stands a chance. Let’s see what Obama comes up with to kill them, too.
Hope and Change!
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