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Thanks for admitting your folly concerning a hypothetical Ford going bust scenario.
I assume then, you also feel it was folly that the Financial System was facing imminent collapse as well. After all, that was hypothetical, wasn't it? Even the Repubs finally realized, a lot late, that the economy was not sound.
I assume then, you also feel it was folly that the Financial System was facing imminent collapse as well.
Collapse is subjective. Most of the tin foil hatters (I'm assuming you were among them?) alluded to martial law and societal collapse. LOL
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Even the Repubs finally realized, a lot late, that the economy was not sound.
I could care less what the Republicrats said. They are professional politicians, lying with every breath they can muster. The real shame was that many believed what tweedle-dee and tweedle-dumb (Paulson/Bernanke) said.
A SUDDEN CHANGE OF HEART ON THE AMERICAN AUTO INDUSTRY.... As we've been talking about over the last couple of days, President Obama's decision to rescue American auto manufacturers looks awfully good with the benefit of hindsight. Republicans were apoplectic at the time, but more than a year later, we now know the GOP was wrong and the Obama White House was right.
The more amusing angle, however, is watching Republicans scramble to justify their enormous mistake. At a moment of crisis, and with the GOP's credibility on the line, Republicans made the wrong call -- but with a little revisionist history, they're hoping you won't notice.
Most people realize, Ford did benefit from the GM And Chrysler bailout.
Yes, they did benefit from it, but it's a little different when he comes in and credits them for their hard work, and for being a strong enough company to not take the bailout, and then supersedes that with the self-congratulatory message that ultimately he saved them all.
Most people realize, Ford did benefit from the GM And Chrysler bailout.
ford may have benefited from the bailouts of gm and chrysler in a small way, but if those two companies had gone into liquidation, ford could have bought jeep at a bargain basement price, and that would have really bolstered fords bottom line.
actually during the bankruptcy proceedings, gm and chrysler both would have had a chance to restructure, set the old debts aside for the time being, and reduce the amount of cash they were burning through each month.
Ah...
GM did reorganize under a Chapter 11 and as a result GM did set aside outstanding obligations, and did reduce their monthly capital outflow. But GM was only able to seek Chapter 11 protection because of Treasury's purchase of GM, a company which in reality ceased to exist on July 10th, 2009! At that time General Motors Corporation became NGMCO, Inc. which allowed NGMCO. Inc to proceed through the reorganization free of any liens or other claims. Had not the the UAW retiree fund and the Treasury Dept, purchased major stakes in GM, the company with total assets of $82.3 billion, balanced against an outstanding debt of $172.8 billion could not have sought Chapter 11 protection. As a result, GM would have been forced into Chapter 7, which would have placed the company immediately under a trustee's whose sole concern would have been the liquidation of the company in an effort to satisfy its creditors.
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instead the government poked their noses in with a prepackaged bankruptcy that basically screwed the bond holders,
Sorry, but once again you are just factually wrong!
On or about November 17th GM execs appeared before Congress requesting Federal aid, aid which at the time was denied. But Congress did invite GM to develop a restructuring plan which GM did.
On December 2nd GM presented its long term plan for viability, at the time Congress and the Bush administration agreed to a $14 billion dollar loan to help GM through its restructuring.
In February of 2009, GM announced that they were that it had spent $19 billion of its cash reserves, on top of losses of $30.9 billion and asked the Obama administration for additional loans, the Obama administration declined!
The administration then told GM, that if they came up with a viable plan for reorganization and sought Chapter 11 bankruptcy protections that then and only then would the government would promise to purchase 60% of GM's stock!
Now I don't know what part of the country you are from, but from all the places that I've ever lived, north and south, it ain't butting in when someone comes to you for help!
As for the bond and stockholders, dude, welcome to the world of investing! Neither stocks nor bonds are secured by corporate equity, the company goes under through a hostile takeover, bankruptcy, or liquidation... well its just a tough day at the casino. So, I suggest stop reading political blogs and go to some legit business reporters.
gave the government and the unions ownership of the companies.
Or bought?
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actually as far as the suppliers go, what likely would have happened is that all the companies that built and sold cars here in the US would likely have formed a holding corporation that would have merged with the parts suppliers during a chapter 11 bankruptcy,
Please point me in the direction of where this was seriously considered, because that certainly never came up when companies like Honda and Toyota were lobbying for GM's bailout.
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