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Old 05-27-2009, 07:10 AM
 
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http://www.nytimes.com/2009/05/27/business/27auto.html

the government will own 70% of general motors.
Including the more than $20 billion that has already been spent to prop up G.M., the government will provide G.M. at least $50 billion to get the company through Chapter 11, people with direct knowledge of the situation said Tuesday. By some estimates in Detroit, tens of billions beyond that amount may be required.
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Old 05-27-2009, 07:50 AM
 
Location: Castle Hills
1,129 posts, read 2,291,912 times
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Quote:
Originally Posted by floridasandy View Post
http://www.nytimes.com/2009/05/27/business/27auto.html

the government will own 70% of general motors.
Including the more than $20 billion that has already been spent to prop up G.M., the government will provide G.M. at least $50 billion to get the company through Chapter 11, people with direct knowledge of the situation said Tuesday. By some estimates in Detroit, tens of billions beyond that amount may be required.
This makes me sick. They are taking OUR money and trying to prop up a company who can't possibly make it. So they are pretty much just burning our money.
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Old 05-27-2009, 08:18 AM
 
Location: Wouldn't you like to know?
9,113 posts, read 15,352,814 times
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This is all about protecting union workers from Blue states due to the large campaign contributions made from the UAW....it was just a matter of time before legacy costs killed the company (although many knew this along time ago).

I have a feeling we are heading toward a time like during the Carter years....

The party hasn't even started yet. Wait till inflation rears its ugly head.


For all younger people (including myself), you need to be tight and save money...I'm not encouraged for the future of this country.
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Old 05-27-2009, 05:00 PM
 
Location: NW San Antonio
2,933 posts, read 8,396,662 times
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Word is GM is filing for Bankruptcy on Monday June 1, 09
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Old 05-27-2009, 05:19 PM
 
Location: Mid-Atlantic
1,820 posts, read 3,913,595 times
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Well, they are buying back 5 of the DELPHI plants that are also in bankruptcy.. so how does that work?
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Old 05-27-2009, 07:26 PM
 
12,870 posts, read 12,825,812 times
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it works like this:


Bailout Watch 538: Feds to “Buy” Delphi for GM for Undisclosed Billions | The Truth About Cars
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Old 05-27-2009, 07:32 PM
 
12,870 posts, read 12,825,812 times
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here is another bit of ugliness:

The Wall Street Journal reports the terms of the United Auto Workers (UAW) deal with the feds re: their payoff to join post-bankruptcy ”good” GM.

Uncle Sam will “contribute” $10 billion to the union’s Voluntary Employee Beneficiary Association (VEBA) health care superfund, paying off half of GM’s unfunded obligations in one fell swoop.

The Treasury Department will also give the UAW a $2.5 billion promissory note. GM (i.e., the federal government) will pay off the note in cash, in three installments (2013, 2015, and 2017). And just in case that’s not enough to entice the union to join “good” GM, the UAW will also receive 17.5 percent of the new post-C11 GM (no longer a controlling interest) AND stock warrants for an additional 2.5 percent of the reorganized company. The $6.5 billion in preferred stock includes a nine percent cash dividend—that will pay out $585 million annually.

Saying that, this is all subject to a federal bankruptcy judge’s approval.

i personally will never ever buy a GM product again.
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