GM Loses Another $16 Billion -- Bankrupt?

[OneFootInTheGrave]

US style socialism

first your "free market" (ie private sector) run the company into the ground

but "it's too big to fail"

than you subsidize the failure without alleviating underlying issues
with huge subsidies they recover for some time, and "all is well"

but after first downturn they fail again

so you repeat the process and so on...

you picked this style from the English... this is old Labour style

[KrazyHorse]

The automakers are not too big to fail. Not even close.

[Dinner]

Originally posted by OneFootInTheGrave
US style socialism

first your "free market" (ie private sector) run the company into the ground

but "it's too big to fail"

than you subsidize the failure without alleviating underlying issues
with huge subsidies they recover for some time, and "all is well"

but after first downturn they fail again

so you repeat the process and so on...

you picked this style from the English... this is old Labour style

I agree that the underlying problems have never been addressed. Not even close.

[DanS]

Originally posted by OneFootInTheGrave
US style socialism

It is no coincidence that Chrysler is asking for money from Uncle Sam 30 years after being bailed out.

I doubt Obama has the balls to do the right thing and let these companies be restructured under bankruptcy protection. He is following President Carter's lead.

[GePap]

Yeah, like any Republican administration would let them go under

[OneFootInTheGrave]

http://online.wsj.com/article/SB122633261247513857.html?mod=googlenews_wsj

Barclays Capital cut its rating on GM to "underweight" from "equalweight", saying the company will probably burn through its existing cash by February, necessitating a bailout that is likely to come at a big cost to existing shareholders.

"While further government assistance would decrease the likelihood of a GM bankruptcy, we believe any government assistance would likely significantly dilute GM's equity," analysts at Barclays Capital said.

Deutsche Bank analysts, who cut their rating on the stock to "sell" from "hold," gave GM a shorter liquidity timeline, saying the company might not be able to fund its operations beyond December. Even with government intervention, the analysts said GM's future is "bankruptcy-like," and shareholders are unlikely to get anything.

[Naked Gents Rut]

No bailout...

[DanS]

I wonder why it took so long for Barclays and Deutsche Bank to declare the obvious -- that at least the shares of GM and Chrysler are worthless.

[Aeson]

They had to build up a short position first?

[snoopy369]

I think it's because they were debating whether to create a new category below 'sell' ... 'give away'.

[Aeson]

You never just give it away. Toilet paper is expensive

[snoopy369]

I mean you give it away because there is a concern they might actually start being worth less than nothing. And after all, stock isn't really pieces of paper anymore in this electronic age...

[Aeson]

It still can be though, you can request paper certificates

[KrazyHorse]

Originally posted by snoopy369
I mean you give it away because there is a concern they might actually start being worth less than nothing.

Originally posted by KrazyHorse
Change the law so automaker shareholders are personally liable for their debts.

[Sandman]

So, erm, isn't this going to cause a massive glut of superfluous cars and worldwide waves of carmaker protectionism?