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Destroyer of Ignorance
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2,988 Posts
Discussion Starter · #1 ·
As I understand it, Henry Paulson has agreed to use $14 Billion in TARP funds to bailout General Motors. Without even getting into the bigger issue of the Constitutionality of his authority to over ride our elected Legislature, let's take a quick look at an article from Bloomberg.

Dec. 12 (Bloomberg) -- For General Motors Corp., the question is no longer whether it will get a government loan or if Chief Executive Officer Rick Wagoner will be replaced. It’s whether anything can prevent the largest U.S. automaker from sliding into bankruptcy.

Even an offer by the Treasury Department today to provide temporary relief, after the Senate rejected a bailout plan approved by the House, isn’t likely to offset the Dec. 10 announcement that GM’s 49 percent-owned affiliate, GMAC LLC, lacked the capital to become a bank holding company. That means the financing unit won’t be able to access Treasury’s Troubled Asset Relief Program to help make auto loans.

GMAC may now have to file for Chapter 11 protection, with or without a loan, joining GM’s biggest parts supplier, Delphi Corp., which is already in bankruptcy. The Detroit-based automaker, leaking $67 million a day -- enough to buy a fleet of 1,800 Cadillac CTS coupes -- may soon be sucked into the vortex.

“GM already is bankrupt and should file for bankruptcy,” said David Littman, senior economist for the Mackinac Center for Public Policy, a policy research organization in Midland, Michigan. “They have too much overhead and too little time left to reduce size to be a survivor in this industry.”
To read the entire story ... http://www.bloomberg.com/apps/news?pid=20601170&refer=home&sid=ai5KpbywxqiQ
 

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tinfoil bandana
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1,164 Posts
Little Man
**** and span
Where were you
When the ****
hit the fan?

We live in 'interesting' times....
 

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Watchin tha world go by
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8,151 Posts
well, we (including the sheeple) should see the futility of our failed attempt at self governance, and no longer need concern ourselves with such meaningless tasks as voting. For now even when the will of the people is expressed thru their elected representatives, it can and WILL be done as the bureaucracy sees fit.

the most dreaded words ever coined --- I am from the government and i am here to help. (and control)

but only themselves, their interests, contributors, and friends.

"When in the course of human events it becomes necessary ....."
 
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