[fdjizm]

i don't see how bankruptcy in any term is a good thing and good for the future? if it's not a bankruptcy why are they calling it a bankruptcy instead of a "makeover" "gm will arise a stronger company" so why go bankrupt? why dont they become a stronger company now?

[dbotsfordtat]

Originally Posted by fdjizm

i don't see how bankruptcy in any term is a good thing and good for the future? if it's not a bankruptcy why are they calling it a bankruptcy instead of a "makeover" "gm will arise a stronger company" so why go bankrupt? why dont they become a stronger company now?

Because among other things they're going to dump their pension obligations with the PBGC and break their UAW contracts. Bankruptcy value is relative to your place in the financial food chain. If your a GM retiree / employee, common stock share holder, or other debt holder and you don't have a congress person in your pocket things look bad. If your an insider, get ready for a taxpayer funded orgy. Privatize the Profits, Socialize the losses, its the American way.

[dayvedayve]

The Unions have helped put a lot of Congress people in office. They also helped Obama. GM can't just break contracts by there own whim. The Judge has the say what they are going to do. Federal judges are subject to political pressure. They may not be so quick to throw the Union out the door. Gotta have somebody work the lines while in Chapter 11. What you will see is more of the debt holders getting the shaft as long as they are not parts suppliers. The Union has been working with GM to concede some. The debt holders are the holdouts. They dont think that the government will force GM into bankrupcty, so their debt is safe. Let the workin man take the screwin.

And yes from original post.

Implant car companies are only doing business here because it makes them more money to take home to their country, while ours slowly dies. They just don't put that in their ads.

"Out of work ? Eat your imports."

Remember that saying. How true will it be?

[diddiyo]

Originally Posted by manimsoblack

I'm planning on by $1000 the day bankruptcy is declared

rofl

[davidj]

Well the type of Bankruptcy GM (or the government) will choose allows them to pick who to pay and who to stiff. What I understand to be there best choice would basically be to cut GM in half. On one side you would have the GOOD GM, and on the other side the BAD GM. On the good side you would have Corvette, Camaro, Cadillac, and Malibu to name a few. On the bad side is the likes of Hummer, Saturn, and any other part of the company that is not profitable. So the bad part gets sold, liquidated, and whatever it takes to pay as much to the people they owe. (As well as giving stocks of the new “good GM”) So what you end up with is a lean mean car producing machine (sorry for that). So I think that kind of explains how a bankruptcy can be good for a company.

[Mr. Wyndham]

Originally Posted by irpq11

I maybe should have waited. :(

Will the company even be public after that? May be a stupid question but with this Gov., you never know.

It should still be publicly traded. I've never payed close attention to a company going through a Chapter 11 proceeding, though -- anybody know what happens to the stock?

Originally Posted by The_Blur

Most people are also unaware that market research suggests that 78% of buyers would be hesitant to buy from a brand that is bankrupt. If a car enthusiast board who knows a lot about GM is panicked about bankruptcy, then imagine how many other buyers won't continue to support the brand. Article is by Consumer Reports.

That's right, Blur...I've even quoted that a few times myself in the past...but now....now I wonder if the same still holds true IF...IF the public learns how 'safe' this particular bankrupcy will be, and if the government actively protects the cars they sell (as they have already)....