JoeyDVivre Wrote: ------------------------------------------------------- > So bankruptcy of GM means that they default on > $150B in bonds and trigger $1T worth of CDS. It > means laying off tens of thousands of well-paid > American workers and a massive shift of wealth to > essentially unproductive lawyers. It means > dumping pesnion and medical guaranties on the > Federal govt. It means increasing our trade > deficit as more and more dollars stream out of the > country to buy big heavy foreign cars and ship > them to the US, an area in which we should have a > huge competitive advantage. It means havng > difficulty providing incentives to manufacturers > to develop energy efficient and non-polluting > cars. It means cutting out lots of research > capacity that has originated all kinds of > important innovations that increase safety, > drivability, and efficiency. > > A GM bankruptcy would be a disaster. I can’t wait > to watch. Once you get rid of their liabilities (e.g. pension & medical), you can probably pick up the pieces and create a profitable company though so there is a decent possibility that none of that would happen (other than the unavoidable massive transfer of wealth to lawyers of course). Perhaps bankruptcy is just what they need!
cerberus is a 3 headed “hellhound” - “watchdog” is a little too subtle.