26 Votes

BREAKING SHOCKER! Obama Administration To Steer GM Towards Bankruptcy!

Agent001 submitted on 5/22/2009 Official Bell & Ross Timestamp: 12:35:54 AM

31 user comments | Category: Spy News | Source: | SOURCE: www.washingtonpost.com

The Obama administration is preparing to send General Motors into bankruptcy under a plan that would give the automaker tens of billions of dollars more in public financing as the company seeks to shrink and reemerge as a global competitor, sources familiar with the discussions said.

Under the GM draft bankruptcy plan, the company would receive just short of $30 billion in additional federal loans, a source said.

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BREAKING SHOCKER! Obama Administration To Steer GM Towards Bankruptcy!

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FWD Torque Steer. Absolute proof the Devil exists.
— Agent001 (View Profile)

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After dumping all ones debt through bankruptcy and coming out with 30billion at ones disposal is an awesome deal. But still doesn't explain why they paid Rick Wagoneer 20mill to be canned when he could easily send GM to bankruptcy without govt. help.
— Badgewhore (View Profile)

Posted on 5/22/2009 12:57:12 AM | reply to this comment | Votes: 4

Why are people crying about GM in Bankruptcy? I dont get it. People get into Bankruptcy all of the time, and then recover.
— HyundaiSmoke (View Profile)

Posted on 5/22/2009 1:33:50 AM | reply to this comment | Votes: 2

I don't know any individuals who personally employ hundreds of thousands of people directly, and millions indirectly, do you?

An individual bankruptcy is tough, but just isn't analogous to the catastrophe of a major corporation's collapse.
— LauderdaleDriver (View Profile)

Posted on 5/30/2009 12:30:38 PM | | Votes: 1

So they get a clean slate and 30billion? That's almost as good as being able to ditch the union! Would suck to be hard core capitalist and paying US taxes right now though...
— Joe_Limon (View Profile)

Posted on 5/22/2009 1:52:50 AM | reply to this comment | Votes: 6

This news is stupid, the washington post is just jumping the gun on this story to get attention. The deadline for GM and the UAW to get things right is June 1 2009. Why bother to give a company money when it would be going bankrupt makes no since what so ever. Also the conditions of the labor talks and current agreement between GM and the UAW will be conveyed to me in two days followed by a vote by members on 6/28/2009.
— 1UAW (View Profile)

Posted on 5/22/2009 2:19:51 AM | reply to this comment | Votes: -2

I will have to agree with 1uaw on this one. There would be no need at all to give a company any money when they would be going bankrupt, also the uaw and GM has cleard major hurdles to settle things outside of bankruptcy story sounds very "fishy" at best.
— upwards (View Profile)

Posted on 5/22/2009 10:57:23 AM | | Votes: -2

GM will be in Chapter 11 on June 1st whether it wants to or not. You can't expect to close down hundreds of dealers without significant lawsuits GM can't afford (unless the bankruptcy court flipped all of them the bird and told them to get lost). Look at what's happening to Chrysler.

Outside of bankruptcy, you can't expect to close Pontiac without having to give dealers severance packages. Oldsmobile cost GM $2 billion, Pontiac will cost even more, but in bankruptcy court, you and the judge can screw anyone over. It's not like the current administration will let GM and thousands of jobs disappear in this economy.

GM is burning through cash faster than Australian bushfires burn through the Outback. The only problem is, they don't have this cash, it all belongs to Uncle Sam. What happens when GM's cashflow runs out of gas? Well we already know that, Chapter 11 on June 1st. There's no need to give GM an extra $30 billion when it will come out of bankruptcy court with debt problems solved and a new lease on life.
— lamborrari (View Profile)

Posted on 5/22/2009 2:59:09 AM | reply to this comment | Votes: 0

I'm not to sure who to be mad at...the Obama admin. that stated "Change" or the Automaker that keeps stealing our money...oh wait...the admin. is allowing this. How stupid I was.
— Type707 (View Profile)

Posted on 5/22/2009 4:46:16 AM | reply to this comment | Votes: 0

A fair response would include the Bush/Paulsen team that started the bailout/loan process, after years of failed economic policies that set the stage for the housing and finance meltdown.

It is quite possible that stalling a GM bankruptcy for six months, when there is more confidence that the stock market and banking industries will survive this mess, will allow GM to use bankruptcy to dump the vestiges of the post-WWII economy that it was designed for. Fewer dealers, cheaper labor, less debt, fewer divisions, all are needed changes.

Seems to me that the Republican and Democratic administrations have handled this situation fairly well, and I suspect the costs to the taxpayers would have been far worse without these difficult moves.
— LauderdaleDriver (View Profile)

Posted on 5/30/2009 12:29:13 PM | | Votes: 1

Is ANYONE shocked by this? I know I'm not. Dumb headline.
— holmstar (View Profile)

Posted on 5/22/2009 8:38:39 AM | reply to this comment | Votes: 2

The headline was being sarcastic.

If you have been reading Auto spies we said they would go bust long before the even the first ridiculous bailout.

001
— Agent001 (View Profile)

Posted on 5/22/2009 1:50:20 PM | | Votes: 1

Note this --

"The government previously indicated that it planned to take at least 50 percent of the restructured company, and likely would take the right to name members to its board of directors, as it has at Chrysler, where the government will control four of nine seats."

News of GM's long-awaited bankruptcy pales compared to de facto government ownership of banking, insurance, the auto industry (health care next?) at the expense of earth-shaking deficits. It is not an original thought with me that this administration is masterful at drawing your attention to some outrageous-sounding controversy, while the real outrage happens behind the scenes. Who cares about the legal and financial mechanisms being employed to deal with the GM mess; have you seen how the dollar is already sliding against other currencies because of the huge deficits the US Treasury is running up -- just as predicted? Have you noticed China (which has enormous holdings in US Treasury notes) rumbling about replacing the dollar with the yuan as a world trade currency? NEWS FLASH: In 5 years time, you may not be able to afford an imported car, because the dollar might be worth so little. Learn to love the GM and Chrysler line-up, I guess...
— TechRightGuy (View Profile)

Posted on 5/22/2009 9:26:04 AM | reply to this comment | Votes: 6

TechRightGuy....... You are right I have both a Toyota and Chevy in my garage both have been trouble free for the 3 years of the Toyota and 2 for the Chevy there is absolutely nothing wrong with owning a domestic when you compare the cars as machine vs machine but when you take a look at the economics comparison when I bought my Toyota I estimated I sent about $18,000 to support Japan and the yuan, money that will take decades to return to the US economy because our exports are a trickle compared to our imports. I found this to be a very frightening and dire wake up call all Americans should to take notice to before we buy ourselves into a third world nation status.
— upwards (View Profile)

Posted on 5/22/2009 11:06:55 AM | | Votes: 7

GM is destined to fail. They are a bunch of slackers.
— veyron1001 (View Profile)

Posted on 5/22/2009 9:54:59 AM | reply to this comment | Votes: -3

The Administration??? You mean years of making shitty cars and becoming a large HMO had nothing to do with it? That IS breaking news, to me at least!
— delan (View Profile)

Posted on 5/22/2009 12:34:03 PM | reply to this comment | Votes: 1

AUTOSPIES SHOCKER!!!!! A MEANINGLESS HEADLINE!!!!!
— 800over (View Profile)

Posted on 5/22/2009 1:48:59 PM | reply to this comment | Votes: 4

Obama better put the basketball down and he and Chia Pet Biden better start creating jobs.

Obama is still the second coming of Jesus Christ, isn't he?
— EL34 (View Profile)

Posted on 5/22/2009 3:45:38 PM | reply to this comment | Votes: 1

Yes, which just shows how much of a cesspool Bush and Co. left for him to clean up.
— delan (View Profile)

Posted on 5/22/2009 4:41:07 PM | | Votes: 3

But he knew the mess, he knew they couldn't make it so WHY did he WASTE all the money on the bailout?

He was a great candidate and is a great talker but his actions in the first 100 days show he's a bonehead businessman.

Just like Bush was.

001
— Agent001 (View Profile)

Posted on 5/22/2009 4:51:20 PM | | Votes: 3

delan -

Do you mean Bush knew about 3 high level terrorists that were water boarded?

It was the Libs that dropped two atomic bombs buring innocent school children to death!

Then the Libs got us into the Korean and Vietnam wars.

During President Bush more people bought homes in his first 4 years than during Clintons 8 years.

Let us not forget during Clinton when the terrorists bombs the WTC and attacked the USS Cole. 9/11 was planned when Clinton was President.

I'll tell you this much, Republicans will not support Obama's economy and if you Libs want GM to survive you better not buy a Japanese or German car. You better support your UAW scrum or else they will be working in the fields with the illegal aliens Obama plans on giving amnesty to.
— EL34 (View Profile)

Posted on 5/22/2009 9:32:52 PM | | Votes: 3

Obama better put the basketball down and he and Chia Pet Biden better start creating jobs.

Obama is still the second coming of Jesus Christ, isn't he?

— EL34

VERY VERY TRUE

I am self employeed, do u all know how many small business is getting ready to go into bankrupt, including myself, this summer should do good much better than anyother summer, if not we will see sea of small business going down...
— pchera01 (View Profile)

Posted on 5/24/2009 11:31:36 PM | | Votes: 3

If it's a breaking shocker, you're using too many fingers, and she's gonna be in pain.
— cococo (View Profile)

Posted on 5/22/2009 10:29:38 PM | reply to this comment | Votes: 0

I have question, after the Bankruptcy, the name will change or it will be the same GM?
— pchera01 (View Profile)

Posted on 5/22/2009 10:47:32 PM | reply to this comment | Votes: 2

EL 34 You are spot on buddy!!!!!!
— vwrules (View Profile)

Posted on 5/23/2009 10:00:07 AM | reply to this comment | Votes: 6

I second that
— bfghemicuda (View Profile)

Posted on 5/23/2009 12:58:32 PM | | Votes: 3

VW is partially state-owned. It has union members on the board. It, like all German automakers is receiving massive bailouts, in the form of "tax credits to get old cars off the road."

All of these "anti-government, anti-socialist" arguments are tragically amusing.
— LauderdaleDriver (View Profile)

Posted on 5/30/2009 12:40:44 PM | | Votes: 1

The real sad part about this is lost to most people. The USA is borrowing itself into OBLIVIAN and very soon the Dollar will simply not be worth anything. So anyone who has the "dollar" saved in large numbers will get burned BIG TIME. It will be better to be in massive debt when the dollar evaporates, rather than have "dollars" put away. So the irresponsible will essentially be the ONLY ones to benefit when this happens.
— TexLandRover (View Profile)

Posted on 5/23/2009 6:21:13 PM | reply to this comment | Votes: 3

US Debt is approaching 80% of GDP, which is awful........but it was 120% of GDP under Eisenhauer, and we did not have inflation, the dollar was worth far more than it is now, and we thrived.

We need to get the debt back under control, but it will be easier with functioning industries to make things.

The Chinmerica model of they make it, we buy it with debt failed........we need to restructure, like GM, and quit kidding ourselves that the world works on "Free Markets," when it does not.

— LauderdaleDriver (View Profile)

Posted on 5/30/2009 12:35:12 PM | | Votes: 1

Since he's the Prez, let's blame Obama for all that ails us, including American auto-makers who have been driving towards bankruptcy for decades. Sorta like blaming the quarter-back who got put into the game for the last 20 seconds for the 107-0 loss. Cheers :-)
— Steve (View Profile)

Posted on 5/28/2009 5:20:26 PM | reply to this comment | Votes: 1

"During President Bush more people bought homes in his first 4 years than during Clintons 8 years."

And that's exactly how we wound up in the financial disaster that we are in now: An financial industry gone wild selling bundled mortgages without caring that they were selling them to people who would never pay them back.

Thanks for the proof.

— LauderdaleDriver (View Profile)

Posted on 5/30/2009 12:37:09 PM | reply to this comment | Votes: 1

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BREAKING SHOCKER! Obama Administration To Steer GM Towards Bankruptcy!

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