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He's a grumpy old man who sits at his keyboard to complain online because he has an audience here. Everyone in his home life probably got tired of listening to his crap. Just leave him be.
Grumpy middle aged man that likes to make fun of naïve morons who don't know any better.
GM needed a bailout because they lost 50% of their sales volume overnight through no fault of their own.
Leasing went away overnight & customers with 700 fico's couldn't get loans.
Any business with high fixed costs would do the same thing. Including tesla, assuming they start pumping out more than 30 cars a week.
Please, name just one Fortune 500 company that could survive a 50% loss in sales.
Ford who was in the same boat as GM only didn't take any bailout. GM went belly up due to bad management that was apparent before they died, not from some sudden loss of sales.
Ford who was in the same boat as GM only didn't take any bailout. GM went belly up due to bad management that was apparent before they died, not from some sudden loss of sales.
Ford took some TARP money, too (Ford Credit got 15.9 billion, and Ford themselves got another 5 billion to retool a couple plants). Yeah, it's not as much, and countered by Ford selling off a lot of stuff and even mortgaging the brand just before the banking industry tanked.
GM didn't go "belly up" due to poor management. Ever consider why all the big three (and some Japanese and European makes in their home markets) needed bailout money at the same time? The BANKING INDUSTRY failed and took away credit, not just for buyers, but for manufacturers (most large manufacturing firms use credit to manufacture product before it gets sold and pays back that credit). The government stepped in (and the governments of other countries for their manufacturers) and lent the money that the banks would have. In GMs case, part of the deal with getting the money was restructuring, which they did.
Quote:
Lehman’s collapse touched off a terrifying run on money-market mutual funds when the Reserve Primary Fund announced that it could pay holders only 97 cents on the dollar because of Lehman-related losses. Savers who’d considered money funds as safe as federally insured bank deposits stampeded for the exits, pulling out hundreds of billions of dollars. It took federal guarantees of more than $3 trillion of money-market fund balances — bailout! — to stop this modern-day bank run.
Some hedge funds that used Lehman’s London office as their “prime broker” had their assets frozen, setting off a run on prime brokers Goldman Sachs and Morgan Stanley as U.S. hedge funds pulled out their assets to avoid getting frozen if either firm failed. Goldman and Morgan were close to running out of cash when the government saved them by making them bank companies with access to the Fed’s lending facilities. Bailout! Bailout! GE Capital was having trouble rolling over its borrowings and was rescued by a government guarantee program. Bailout! Then there was American International Group, the now infamous AIG, which required a 12-figure rescue.
Had Goldman, Morgan Stanley, GE Capital, AIG and several giant European banks not received bailouts and instead failed, even capital-rich J.P. Morgan Chase would have gone under because it wouldn’t have been able to collect what these and other players owed it. There would have been trillions of dollars in losses, worldwide panic, missed payrolls and quite likely the onset of the Great Depression II. That’s why we needed a bailout. And why we got it.
TARP was only a small portion of this bailout, but it was necessary to keep the manufacturers afloat during the banking crisis. Certainly had nothing to do with poor products.
Ford who was in the same boat as GM only didn't take any bailout. GM went belly up due to bad management that was apparent before they died, not from some sudden loss of sales.
Ford also borrowed billions of dollars, they even put up the blue oval as colatoral, GM is a lot bigger than Ford also. At one time GM was the largest company in the world. Those of you who don't live in Michigan don't really know about how the big3 impact our state. We know more about the automotive industry than others. Like the op said credit was frozen no one could get a loan, construction came to a standstill no companies were order work trucks or vans. Gas prices didn't help also you can blame the big3 all you want but the big banks caused the automakers downturn.
Ford also borrowed billions of dollars, they even put up the blue oval as colatoral, GM is a lot bigger than Ford also. At one time GM was the largest company in the world. Those of you who don't live in Michigan don't really know about how the big3 impact our state. We know more about the automotive industry than others. Like the op said credit was frozen no one could get a loan, construction came to a standstill no companies were order work trucks or vans. Gas prices didn't help also you can blame the big3 all you want but the big banks caused the automakers downturn.
No complaints here. There's nothing that would suck worse than only 1 American company (to Germany's 3) and no Corvette.
Ford who was in the same boat as GM only didn't take any bailout. GM went belly up due to bad management that was apparent before they died, not from some sudden loss of sales.
Ford mortgaged themselves to the gills just before the crash happened to personally enrich the Ford family.
If the (financial) crash hadn't happened, Ford would be dead as a doornail today - don't forget "cash for clunkers" that benefited Asian manufacturers and Ford as well.
GM was a very sick company before the bankruptcy, but they had years of toddling around in ill health ahead of them before the collapse.
Compared to the banking industry, GM was led by a bunch of financial geniuses.
I have no love at all for gm, but no one gets to rewrite history.
Ford took some TARP money, too (Ford Credit got 15.9 billion, and Ford themselves got another 5 billion to retool a couple plants). Yeah, it's not as much, and countered by Ford selling off a lot of stuff and even mortgaging the brand just before the banking industry tanked.
GM didn't go "belly up" due to poor management. Ever consider why all the big three (and some Japanese and European makes in their home markets) needed bailout money at the same time? The BANKING INDUSTRY failed and took away credit, not just for buyers, but for manufacturers (most large manufacturing firms use credit to manufacture product before it gets sold and pays back that credit). The government stepped in (and the governments of other countries for their manufacturers) and lent the money that the banks would have. In GMs case, part of the deal with getting the money was restructuring, which they did.
TARP was only a small portion of this bailout, but it was necessary to keep the manufacturers afloat during the banking crisis. Certainly had nothing to do with poor products.
As I said "ford took no bailout money" and they didn't.
It’s true that Ford was not “bailed out by our government,” as Chris says. However, the company’s president and CEO testified that his company would suffer if Congress did not pass legislation to provide financial support to the ailing auto industry. He urged Congress to pass the bill.
Ford mortgaged themselves to the gills just before the crash happened to personally enrich the Ford family.
If the (financial) crash hadn't happened, Ford would be dead as a doornail today - don't forget "cash for clunkers" that benefited Asian manufacturers and Ford as well.
GM was a very sick company before the bankruptcy, but they had years of toddling around in ill health ahead of them before the collapse.
Compared to the banking industry, GM was led by a bunch of financial geniuses.
I have no love at all for gm, but no one gets to rewrite history.
So are you saying that Ford took bailout money (disproven) or that GM did not fail due to bad management?
If so, please show with factual data that backs your opinion up.
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