Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Not to mention the GM bondholders that took a huge LOSS when GM got the gravy bankruptcy deal. Now, that 30% that was supposed to replace the bonds is even a smaller pittance for folks, some who lost most of their life savings.
Not to mention the GM bondholders that took a huge LOSS when GM got the gravy bankruptcy deal. Now, that 30% that was supposed to replace the bonds is even a smaller pittance for folks, some who lost most of their life savings.
So? GM was going bankrupt and the stockholders and bondholders would have gotten nothing in any case.
In a capitalist system stockholders and bondholders take risks to earn extra returns. If these stockholders and bondholders didn't want risk they should have bought T-bills instead of corporate instruments. Just don't cry later that it didn't work out as planned.
So? GM was going bankrupt and the stockholders and bondholders would have gotten nothing in any case.
In a capitalist system stockholders and bondholders take risks to earn extra returns. If these stockholders and bondholders didn't want risk they should have bought T-bills instead of corporate instruments. Just don't cry later that it didn't work out as planned.
When I company undergoes bankruptcy re-organization the ownership of the bondholders (primary to that of stockholders) does not just disappear. However, by injecting the government into the private contract between bondholders and GM, Obama stole the bondholders' ownership interest and turned it over to the unions.This is not a "risk" it is fraud via fascist corporatism.
GM, AIG shares slides to add $23 billion to deficit (http://news.yahoo.com/gm-aig-shares-slides-add-23-billion-deficit-235119339.html - broken link)
The non-partisan CBO, as part of its annual budget outlook, said that the Troubled Asset Relief Program, or TARP, will reverse $37 billion in gains in fiscal year 2011, and instead post a net cost of $23 billion this year.
The net $61 billion swing is due to declines in the value of shares the U.S. Treasury owns in General Motors Co and American International Group.
... GM, despite a major comeback that has returned its crown as the world's top-selling automaker, has seen its share price slide from $37 a year ago to $24.02 on Tuesday - significantly below the $33 IPO price and far below the approximately $53 price needed for taxpayers to break even.
No problem when you are gambling with money that is not your own.
So? GM was going bankrupt and the stockholders and bondholders would have gotten nothing in any case.
In a capitalist system stockholders and bondholders take risks to earn extra returns. If these stockholders and bondholders didn't want risk they should have bought T-bills instead of corporate instruments. Just don't cry later that it didn't work out as planned.
There would have been a liqudation of assets.....first line creditors would have been made whole first.
Or....a more likely scenario.....a vulture investor(s) would have bought GM and all that entails (obligations) for 10 cents on the dollar.
Why....why did they(Big Brother) stick their noses into this company when so many others could use a massive injection of liquidity???? Union votes.......that is the answer.
When I company undergoes bankruptcy re-organization the ownership of the bondholders (primary to that of stockholders) does not just disappear. However, by injecting the government into the private contract between bondholders and GM, Obama stole the bondholders' ownership interest and turned it over to the unions.This is not a "risk" it is fraud via fascist corporatism.
Oh please. GM had negative assets. The stockholders equity would be zero. The bondholders would become the new stockholders but also have negative equity.
GM tried to sell it's assets, like Saturn. Nobody wanted to buy it.
Had GM been allowed to go bankrupt, these groups wouldn't have their equity and nobody would have b itched about it. But now that Obama's name is used, the whiners come out of the woodwork.
Oh please. GM had negative assets. The stockholders equity would be zero. The bondholders would become the new stockholders but also have negative equity.
GM tried to sell it's assets, like Saturn. Nobody wanted to buy it.
Had GM been allowed to go bankrupt, these groups wouldn't have their equity and nobody would have b itched about it. But now that Obama's name is used, the whiners come out of the woodwork.
Nice try.....if they went under their assets would have been sold off.
And yes....GM has/had billions in assets that could have been sold to make investors whole......as opposed to paying off union hacks.
Moreover, since you have no idea whether GM's assets would have fetched $0, 10 cents on the dollar or more, your assumption that "assets could have been sold to make investors whole" is mere speculation. In reality, you have no idea if the investors would have gotten anything after debts were paid. Odds are, debt exceeded assets or they wouldn't have considered bankruptcy.
Nixon took currency off of Gold standard in '70s converting it to fiat currency. Ronald Reagan initiated the debtor nation. 1991 President Bush gives his New World Order speech. The debt is unpayable. America no longer produces and neither does it look like either party has bringing the sovereignty back to this county. They want Globalism. America gets to continue to get fat off the labor of third world countries? I don't think so.
Bye bye Constitution? Bye bye America. Hello North American Union. Hello New World Order. Their "Atlantis". This is all been told years ago in the Bible.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
When I company undergoes bankruptcy re-organization the ownership of the bondholders (primary to that of stockholders) does not just disappear. However, by injecting the government into the private contract between bondholders and GM, Obama stole the bondholders' ownership interest and turned it over to the unions.This is not a "risk" it is fraud via fascist corporatism.
