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GM Bankrupt Again (Saturbray)
www.brayincandy.com ^ | 8/18/12 | bray

Posted on 08/18/2012 9:03:28 AM PDT by bray

“I have testimony weightier than that of John. For the very WORK that the Father has given me to finish and which I am doing, testifies that the Father has sent me. John 5:36

My source inside the White House is warning that the collapse of GM is imminent it is just a matter of if they can hold out until after the election. The bankruptcy of Obama Motors with the entire reason for the Premier’s re-election resting on its success has the entire DNC on triple high alert. Never mind they have no economic clue outside the usual liberal extortion, they are seeing some reports worse than they were during the final months of the Bush years and applying lipstick with a spatula. They are claiming it is the shining star of the Obama recovery while internal reports are showing it bleeding like a Christian at an Islamic conversion celebration.

What could possibly go right when you combine the Gummit with the Auto Workers Union to run the largest corporation in the world? You have central planners making economic decisions by party affiliation while the unions are attempting to replace the cash out of their pension funds they have just raided to get Obama and his fellow cons elected. Now you have non-existent sales due to the anger the consumer has at being robbed to fund another Ponzi scheme while being insulted again and again by this corrupt syndicate.

Who didn’t see this coming from the beginning when the unions have been destroying these companies for decades with their suffocating wage and benefit programs while producing an inferior product. Now you can’t give the cars away as they are nothing more than a commie lib vision of the car he would love to drive but nobody else wants. They are dreaming of little clown cars that tip over when you put a sack of groceries in them while sipping gas like it was a vintage wine. If they would allow the oil companies to drill without the EPA strangulations we would have cheap gas to drive bigger cars which bring the most profit margin and happiest customer. This can’t happen under a communist dictatorship because they don’t want happy people who can think and act for themselves let alone make profits, they are all about controlling your life and you working for the state.

There is no way Gummotors can succeed. This was a formula for failure from the beginning and now we have to watch a once great company collapse under its own bloated fat. We have an ownership which has no profit motive running a company whose only reason for existence is employing people and funding the union pension plans. It has a labor cost that is the highest on the planet with benefits that far exceed the value of the product they produce which only can lead to one destination, bankruptcy. The sooner this happens, the better for this Obamanomic disaster for the company, its workers and the few investors it has left. The only ones it is not good for is the taxpayers and Obama but we knew that when it happened so may as well bite the bullet now rather than later.

This is the reason communism and nationalization does’t work in building cars or any other enterprise including Healthcare, Medicare and Social Insecurity. The gummit has no profit motive which is the simplest way to motivate people and maintain costs. When you take that out of the equation you have to replace it with bribes and graft which leads to corruption and waste making inferior products and subsidies which is what we are seeing today. For the short sighted Pol they have a Works Project they can point to that is creating jobs even though it is creating more waste and abuse. This is why it doesn’t work for Chevy and why it doesn’t work for Medicare, you have to have people motivated by self governing profit to make the company efficient and healthy.

The best thing that can happen for all of these programs is for them to collapse under their own weight. Just like GM there will be short term suffering and long term gain. People will be forced to make the necessary sacrifices that will have to be made until a new and market based program can be developed. In GM’s case there needs to be a complete bankruptcy and either a buyout from another company such as Ford or Toyota, or it goes the way of American Motors. Ideally a new investor buys it that is union free. The unions have been sucking these companies dry for so many decades they are no longer viable due to those lavish benefits.

Now there are going to be some tough decisions to be made and first and foremost is the ending of the communist union bosses. When we eliminate the unions from the cost of building a car they will eliminate thousands of dollars of expense making their cars more competitive in the world market and making these cars more affordable to the average American. The worker will have the same amount in his paycheck however he can save for a 401K like most Americans and manage his retirement himself. It will make the production floor more competitive and efficient leading to more pay and more profit. You have to reengage the worker into the company rather than the union us against them mentality.

The sooner GM goes bankrupt the sooner we can see real changes in our auto industry and in our economy. We are simply propping up a failed company with subsidies both above and below the table to help the Commie Organizer continue his destruction of our economy. If GM were to file for real bankruptcy cancelling all of the union contracts then people would be interested in investing in that company and a new and vibrant future would be worth pursuing for some auto investors.

Until that day the risks are too big and the rewards are too small. The taxpayer is going to take a hit but we knew that when the economic maroon made the loan just as when they forced loans on Fannie Mae, that were simply bribe money and never coming back. So in the long run the best thing we can do for the taxpayers is get rid of the union and replace them with capitalists who will reorganize this company to return it to the greatness it once enjoyed, unfortunately there is only one path for that to happen and they are on that path so close the doors and begin rebuilding General Motors and America.

Pray for America


TOPICS: Business/Economy; FReeper Editorial; News/Current Events; Politics/Elections
KEYWORDS: abovethelaw; bloggersandpersonal; dncrico; gm; sourcetitlenoturl; vanity

1 posted on 08/18/2012 9:03:32 AM PDT by bray
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To: bray

That’s excellent!

BUMP


2 posted on 08/18/2012 9:07:41 AM PDT by Lancey Howard
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To: bray
The gummit has no profit motive which is the simplest way to motivate people and maintain costs. When you take that out of the equation you have to replace it with bribes and graft which leads to corruption and waste making inferior products and subsidies which is what we are seeing today.

A basic truth.

3 posted on 08/18/2012 9:10:06 AM PDT by arthurus (Read Hazlitt's Economics In One Lesson)
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To: bray
Maybe Romney should demand that Obama show us General Motors internal financial documents. That might be the proper reply to the demand to see Romney's taxes. What rational excuse could Obama give to not show them? And Obama accused Romney of being a criminal for violating SEC regulations. Oh, the irony of it all!
4 posted on 08/18/2012 9:13:44 AM PDT by fhayek
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To: bray
The sooner GM goes bankrupt the sooner we can see real changes in our auto industry and in our economy.

Government simply CANNOT pick winners and losers in the private sector.

They would have been in better shape if allowed to go bankrupt the first time. Now with the Unions and the Government in control, I do not feel there is any hope for GM. Look at the Post Office.

5 posted on 08/18/2012 9:21:37 AM PDT by FatherofFive (Islam is evil and must be eradicated)
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To: fhayek

“Maybe Romney should demand that Obama show us General Motors internal financial documents.”

That’s not a bad idea at all.


6 posted on 08/18/2012 9:28:53 AM PDT by Attention Surplus Disorder (This stuff we're going through now, this is nothing compared to the middle ages.)
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To: bray
As a public held company GM must submit financial statements to it's shareholders testifying to the health (or not) of the company. If these docs are deliberately falsified and that should be provable if the company collapses suddenly in the next few months, I would expect to see a vigorous prosecution by the SEC and the Justice Dept.

heh, heh, just kidding folks

7 posted on 08/18/2012 9:38:26 AM PDT by beenaround
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To: bray
Great stuff Buddy!

I read where GM was now basically a Chinese company with 70% of the production based in China and some of the other vital depts. also based in China.

8 posted on 08/18/2012 9:39:17 AM PDT by rodguy911 (FreeRepublic:Land of the Free because of the Brave--Sarah Palin 2012)
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To: Attention Surplus Disorder
>>>"My source inside the White House is warning that the collapse of GM is imminent it is just a matter of if they can hold out until after the election."

This argument that a GM bankruptcy is imminent is ridiculous. First of all, bankruptcies for large industrial companies generally develop over several years, as oppsed to financials which can occur quickly. In the case of GM, people were talking about bankruptcy for several years before the financial crisis finally triggered it. I don't hear "credible" analysts discussing such a possibility in the medium term, let alone within a few months. Second, a review of GM financials shows cash and marketable securities have increased year to date. I don't know the term structure of their long-term debt, but unless they have a large slug of debt coming due soon which they are not able to refinance in what a relativley issuer friendly environnent, there is no reason to think a bankruptcy would happen in the near future.
9 posted on 08/18/2012 9:44:22 AM PDT by nc28205
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To: bray

It’s pretty good except I get irritated when people use words like gummit or goobermint rather than simply spelling out the word government. After about the third time, I stop reading. In this case I got halfway through.


10 posted on 08/18/2012 9:48:47 AM PDT by webheart (King of the Run-On Sentence)
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To: bray

Excellent. Thanks for posting bray.


11 posted on 08/18/2012 9:49:47 AM PDT by rockinqsranch (Dems, Libs, Socialists, call 'em what you will, they ALL have fairies livin' in their trees.)
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To: bray
Maybe the next move is for the U.S. government to divest itself from Government Motors and allow them to go through a full bankruptcy proceeding as should have been done years ago, before Obama decided to enrich the UAW at the expense of the GM investors. Time to kill the UAW and their expensive salaries, vacations, health care, and pensions. Time for mass layoffs of union thugs and plant closings. Time for real PAIN in the ranks of labor. Payback is a b-eye-itch, boys and girls.
12 posted on 08/18/2012 9:51:37 AM PDT by MasterGunner01 (11)
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To: bray

Absolved from paying INCOME TAXES and still can’t produce a profit?! Sounds like libtard business “acumen” to me...


13 posted on 08/18/2012 9:51:37 AM PDT by Common Sense 101 (Hey libs... If your theories fly in the face of reality, it's not reality that's wrong.)
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To: bray
Interesting article, however I understand that Gummit Motors has a new car slated for 2013 that should save the company and end the drought and improve the wheat harvest next year.
Take a look:
www.ladausa.net
14 posted on 08/18/2012 10:07:51 AM PDT by Tupelo (Sara Palin.............my write in vote for 2012)
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To: bray
The bankruptcy of Obama Motors with the entire reason for the Premier’s re-election resting on its success has the entire DNC on triple high alert.

This is a statement not to be confused with with English

15 posted on 08/18/2012 10:22:51 AM PDT by Rudder
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To: bray

bump


16 posted on 08/18/2012 10:26:56 AM PDT by chuckles
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To: nc28205; bray

If GM goes down anytime soon that will mean GM has grossly lied to its stockholders which will mean GM will be in big trouble with the SEC.

nc you’re right. Publicly traded companies don’t just suddenly go bankrupt. bray, I’d be questioning my source very closely.


17 posted on 08/18/2012 10:41:25 AM PDT by upchuck ("Definition of 'racist:' someone that is winning an argument with a liberal." ~ Peter Brimelow)
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To: bray

OUTSTANDING, bray!

BIG GOVERNMENT IS CRONY SOCIALISM. Look what it has done to this country. Parasitic BIG GOVERNMENT socialists and their cronies looting America. Plunder and death. It’s what socialism/totalitarianism is about. Socialism devolves into totalitarianism...total control. Witness the “fundamental transformation” taking place.

DEFUND socialist collectives foreign and domestic. DEPOPULATE socialists from the body politic. Listen to them whine. Watch them go away so that we may...

live - free - republic/American


18 posted on 08/18/2012 10:53:45 AM PDT by PGalt
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To: nc28205

“This argument that a GM bankruptcy is imminent is ridiculous.”

Not knowing anything in particular about the situation, I’d generally agree with you. I didn’t give the claim in the article much, if any credence.

However, in light of what you said about financial vs mfg companies, I’d point out that “GM” also includes GMAC, their financing arm. And there, although GMAC is a lot smaller than GM, about 1/3rd the size if memory serves, we are still talking about a few tens of billions of dollars. Forget not that GMAC was actively engaged in the mortgage biz, not just financing cars.

So, I 95% agree with your take, but it’s still possible that GMAC could have a boatload of defaulted mortgages, and, as adroitly as they handle so many other things, maybe they are aren’t as sophisticated as our exalted bankster masters when it comes to hedging, declaring assets adequately marked to fantasy, etc;


19 posted on 08/18/2012 11:17:47 AM PDT by Attention Surplus Disorder (This stuff we're going through now, this is nothing compared to the middle ages.)
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20 posted on 08/18/2012 12:07:46 PM PDT by RedMDer (https://support.woundedwarriorproject.org/default.aspx?tsid=93destr)
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To: Lancey Howard

I’ll wager Hyundai could make a pretty good pick-up truck.


21 posted on 08/18/2012 12:10:31 PM PDT by joelt
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To: nc28205
This article is ridiculous. GM still has serious problems, and their European Division is an albatross, but they aren't going to go belly up anytime soon. In a decade their US operations will be either vestigial or nonexistent. But bankruptcy within months? No.

I would take issue with the claim that this is an issuer friendly environment. Comparatively, I can't agree with that assessment.

22 posted on 08/18/2012 12:15:51 PM PDT by FredZarguna (Paul Craig Roberts: now with 50% more Crazy.)
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To: Attention Surplus Disorder
I think you are overlooking the fact that GMAC received a LOT of TARP money; GMAC went to that well at least three times that we're aware of. We will never actually know how much GMAC received -- it is a very cleverly hidden part of GM's bailout. We do know that their terms were more favorable than just about anybody else's. So I doubt they have short term debt they can't cover; although they might, if they've been hiding the extent of their exposure, which, clearly through the end of 2009 is exactly what they were doing.

Even so, I think this is baloney.

23 posted on 08/18/2012 12:22:06 PM PDT by FredZarguna (Paul Craig Roberts: now with 50% more Crazy.)
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To: Attention Surplus Disorder

Did a quick Google search and found this recent article in Forbes:

http://www.forbes.com/sites/louiswoodhill/2012/08/15/general-motors-is-headed-for-bankruptcy-again/


24 posted on 08/18/2012 12:30:32 PM PDT by think4yrsf (From Jefferson's Virginia)
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To: think4yrsf

I read that article. (from your link)

That article makes a subjective opinion about the market penetration and market dominance (or lack thereof) of GM, which we all at some level think of as a powerhouse brand name. I believe the article is fairly well argued; but I also think it is important to distinguish between “bankrupt” as a subjective writer might term a “sales downturn resulting from poor engineering or styling choices” versus “bankrupt” as an accounting/legal status.

I don’t really know the answer here, I am just pointing out that my prior posts on this thread related to the accounting/legal meaning of BK. I’m not sure GM could even go BK (acctg/legal) at this point; the government would lose so much money bailing it out (again) that IMO the US Gov is absolutely committed, 0bama or not, to keeping the company going. It very well may be that the Govt loses less money keeping GM in biz, even if they operate at a massive loss, rather than paying unemployment for the workers (and the workers in support industries, eg; steel, plastics, rubber)

I really don’t know. Perhaps the whole thing is just waiting for the next genius to come along to figure out how they and their pals can strip a few more billions out of the carcass. Then we’ll be informed of the “new plan for GM”.


25 posted on 08/18/2012 1:25:02 PM PDT by Attention Surplus Disorder (This stuff we're going through now, this is nothing compared to the middle ages.)
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To: bray

I don’t know anything about GM’s financial situation, but I do know that when the gov took over, they hired in new recruits at $15.00 an hour with no benefits.


26 posted on 08/18/2012 1:29:45 PM PDT by Slyfox
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To: Attention Surplus Disorder

The only solution is to sell off foreign divisions and shut down the money devouring American operations.

The American divisions could be offered for sale piecemeal but if there are no buyers to assume the debt they must be shuttered.


27 posted on 08/18/2012 1:33:56 PM PDT by bert ((K.E. N.P. N.C. +12 ..... Present failure and impending death yield irrational action))
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To: webheart; bray
I get irritated when people use words like gummit or goobermint

I agree.

Everybody knows it's "gubmint".

28 posted on 08/18/2012 1:44:20 PM PDT by ROCKLOBSTER (Celebrate Republicans Freed the Slaves Month.)
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To: rockinqsranch

Thanks guys, glad you liked it. For those who are English majors, my condolences for being born w/o a sense of humor.

Pray for America


29 posted on 08/18/2012 2:20:15 PM PDT by bray (Take out the commies in November!)
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To: Attention Surplus Disorder
>>> , I’d point out that “GM” also includes GMAC, their financing arm.

No, GMAC is separate from GM. It is now known as Ally Financial. GM has a captive finance arm known as GM Financial. In 2Q12, auto sales accounted for about 37B in sales and GM Financial was just 487MM. Even so, auto finance companies have been performing fairly well lately because used car values have been high, which limits loss severity even if the loan goes bad.
30 posted on 08/18/2012 5:29:26 PM PDT by nc28205
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