Ok basic question here. GM says it is burning thru 5B per month of cash. If there is a 25B loan to the big 3, they could qualify for about 12B of it(according to article). So that gives them cash for the next few months…then what? How are they going to turn around their biz and restructure and come out competitive in such a short time? Is this as obvious of a bad idea as it seems?
I think it is… the idea is to get the government to hold an equity stake so that the next time this happens 12 months from now, they will act faster to help themselves…
tvPM Wrote: ------------------------------------------------------- Is this as obvious of a bad idea as it > seems? Yeah - the senators were reaming them about monthly burn rate and how $12B was probably not going to be the last loan if they started giving them money.