Quote:
Originally Posted by billethkid
I was not aware the auto businesses were or would have gone out of business. They were headed for bankruptcy which does not = going out of business.
Without government throwing money at them, they would have gone into chapter 11 and with the high horsepower legal staff they would have no doubt already had a plan to submit to the judge, commonly referred to as a prepac bankruptcy. They would have secured a line of credit from some source without a doubt. Due to the requirements of the courts there would have been a purge of incumbent management and a down sizing of overheads. They would have not ever missed one day of production or new model introduction as that is the life blood of the newly organized business structures. The debt would have had a structured pay back and the bankruptcy plan would have established benchmarks with progress reviews via the courts. The auto makers involved would meet their criteria and they would emerge from bankruptcy....now get this part....AS PLANNED!!
The ongoing misinformation about these manufacturers shutting down and hundreds of thousands of jobs lost was never ever in the cards.
Obama struck a deal with the executives and more importantly the UAW using our money with no plan for assurance of accomplishment. Purely 100% political just like the stuff being currently spewed by Obama at the union meetings this past week. "They wanted to shut you down" = BS! He also inferred Romney would have allowed your company to shut down, lose your job = BS!
Obama doesn't know the bankruptcy policy and doesn't care. And unfortunately far too many of his supporters don't understand it either...OR CARE!!
In closing, to point to the stock market as an indicator of improvement is also mis information. The stock market has been puzzling those on the edges of it for the last two years as they continued to be amazed at the continuous improvement during the midst of the so called recession. And now that the networks are hailing the breaking of 13000 the political spinners and the naieve are claiming the market is an indicator of Obama's improving economy. More political spin and BS right along side the notion that auto companies were going to close their doors and millions be unemployed....PURE UNADULTERATED POLITICAL BS!!!
And the pied piper once again raises the volume on his flute for the flock to follow....
btk
|
You and I are going to have to simply agree to disagree, Billie.
I spent a quarter of a century in corporate finance. Prior to that part of my career I worked for ten years as an executive with Chrysler. I have been thru dozens of bankruptcies. I know how they work. I was personally involved when the government bailed out Chrysler with loan guarantees back in 1980. And I know quite clearly what the financial condition of GM and Chrysler was in 2009, at the time the government stepped into the situation.
Little of what you said in the quoted post is accurate. GM and Chrysler were within a couple weeks of running out of money. No lender had expressed any interest whatsoever in providing them with a financing commitment, even in a bankruptcy. They might have initially filed for a Chapter 11 bankruptcy, but would have quickly modified to a Chapter 7 liquidation. If not for the government stepping in to force a plan of reorganization and provide financing, neither GM or Chrysler would be operating today.
All I can tell you is that I speak from first-hand experience.