VettedCandidate

I'm watching the Big 3 boys and I just want to express how sickening a picture they are all painting. We are screwed as taxpayers no matter what happens. The idea that it might be 2 DECADES before this market allows them to pay this back makes me sick.
Without a bankruptcy to force the system to restructure, this is folly! It is also folly to do nothing. OUR LEADERS HAVE TOTALLY LET US DOWN!!
I do not believe any of them any longer...I have absolutely no trust left.
It is all

BetterMostC6

Yes it is totally. What message does this send? If a Company is mis managed it should fail.

rjwoerheide

I agree it is very frustrating. Normally I would say, let them go bankrupt. Trouble is, if they file for Chapter 11 they will need to rely on the credit market to pay their suppliers for steel, aluminum, wiring, etc. The credit market right now stinks and probably won't be able to support GM's Chapter 11. This is something the talking heads on TV keep forgetting to mention. We are sort of stuck either way we turn: bailout "loan" or bankruptcy. Either way, we'll never see our money again.

From The Nation: "A prepackaged Chapter 11 filing in a different era would have allowed GM to restructure, protect itself from creditors and emerge leaner and more financially sound. But as The New Republic's Jonathan Cohn recently wrote, in order to become productive while in bankruptcy protection, GM would need to be able to buy materials and parts from suppliers on credit through Debtor-in-Possession loans. The current credit climate makes it unlikely that GM would find creditors willing to lend the funds necessary to continue operations. In this case, GM would be forced into a Chapter 7 situation--total liquidation. "

Revving High

the bailout its just a band aid. They will be forced to go bankrupt in the next few years anyway. This country is on track for a Depression before 2012.

Thradar

Current market caps:

Ford - $6.74B
GM - $2.71B

That's chump change.

Instead of a loan why doesn't the g'ment just buy them and nationalize them? If we're gonna be socialist let's do it right.

rjwoerheide

Actually, it's not a bad idea!! The government could just buy them, instead of spending $35,000,000,000.00 on a company that's worth 2.7.

peter pan

Nothing to worry about Change will fix everything, puff the magic dragon and all is well in America

AFVETTE

And Toyota is like what $130B+???? And the OP is right, these hearings are a sham.

LarryMJones

If you haven't noticed the Democratic candidates in this country owe everything to the unions, who currently represent a small percentage of the work force.
A 5% block vote in todays elections pretty much decides the election.
As a result the big three are stuck with labor deals that congress should have voided long ago. But they won't, or they will loose the union vote.
What congress should do now ASAP, is mandate all vehicles made in this country have the same labor burden cost. The workers can be union or non union, it doesn't matter, but the health & welfare benefits, and pensions, should all be paid into a pool for autoworker benefits.
Then the big 3 wouldn't have to declare bankrucpy to have the same labor cost as the "competition".
To add to the pot all imported vehicles should be hit with a per car fee equal to the health and welfare cost of US manufactures, paid into the fund.
You can't penalize the US auto industry with these added labor cost and expect it to survive.
The only alternative is bankrucpy. Then the US auto industry would quickly come out the winner.
LJ

GotVett?

Also, having to explain and beg to the likes of these illustrious, "holier than thou politician's, is another insult!!! "Den of thieves" come to mind.

PAvetter

Its the new world order.. can't pay your mortgage - the gov't will save you, company can't make it competitively - the gov't will save you, can't find a job - the gov't will give you everything you need to live.