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#1
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Do you think when push comes to shove the US Govt will bail out GM? Do you think it will come to that? Do you think it should?
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#2
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They better not. GM is run like crap and they aren't going to do any better if the government just throws money at them. Going bankrupt would likely be the best thing that could happen to the company. (Think K-Mart)
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#3
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[ QUOTE ]
They better not. [/ QUOTE ] I don't think that this has much to do with answering the OPs question. [ QUOTE ] GM is run like crap and they aren't going to do any better if the government just throws money at them. [/ QUOTE ] What is the probability that the government will off some sort of assisstance and if so what will it do to the price of the stock. Again you really haven't offered up any reasonable argument yeah or nay from which a reader of this forum might profit from. [ QUOTE ] Going bankrupt would likely be the best thing that could happen to the company. (Think K-Mart) [/ QUOTE ] Weren't the prior to chapter 11 KMart equity investors wiped out? Can't see how this would be a good thing for current GM equity investors. |
#4
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kmrt equity holders got nothing cause there was nothing left, equity holders are the last to get paid in bankruptcy.
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#5
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The gov't will give GM some assistance but I don't know how long it will keep them afloat.
Indy |
#6
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Will they? The Pres is an R, both houses are Rs, Union GM workers are Ds, Hmmmmmm. I also don't know that Kirkorian is a big Bush man. Let's just say I don't see anyone in government sacrificing anything to help GM.
Personally I would prefer to see each overpaid GM worker get every penny promised even if it meant that Iraq was run by Nazis and the children of Darfur were served up as soup. |
#7
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They kinda bailed chrysler out...and it was great for the share price.
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#8
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kmrt equity holders got nothing cause there was nothing left, equity holders are the last to get paid in bankruptcy. [/ QUOTE ] Yes, this would be the ideal situation. This would allow the company to become competitive because it would remove the management, union and debt. |
#9
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[ QUOTE ]
Do you think when push comes to shove the US Govt will bail out GM? Do you think it will come to that? Do you think it should? [/ QUOTE ] I don't think they should. GM should just go Chapter 11, and if they do it quickly enough, might even save value for the common shareholders. But one prior example to think of is the airline bailouts. The government put strong restrictions on the bailout (i.e. loan gurantees), so strong that UAL didn't qualify. And those that took the guarantees had to give the government stock options, so if they succeeded the government owned a significant part of the business as payment for taking the risk. I doubt any company will ever again get a free ride like Chrysler did, where the government bails out a badly managed business so the owners and managers can profit at the public's expense. Any help will likely will come with restrictions on management pay and part ownership. This in itself will make it less likely that GM's management will ask for help. |
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