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Thread: Harry Reid: Auto Bailout Probably Saved Ford

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    Re: Harry Reid: Auto Bailout Probably Saved Ford

    Quote Originally Posted by ptif219 View Post
    You use a 2008 article that it could help? Is that because there is no proof it helped.

    Ford did not take the bailout because they did not want government control over their business.

    Ford did what it had to do and GM could have done the same.
    No they couldnt

    Ford when Mullay took over mortgaged everything. It had a massive amount of credit avaliable during the downturn, GM and Chyrsler did not have the credit avaliable which is why they went cap in hand to the government, while Ford did not
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    Re: Harry Reid: Auto Bailout Probably Saved Ford

    Quote Originally Posted by Lord Tammerlain View Post
    No they couldnt

    Ford when Mullay took over mortgaged everything. It had a massive amount of credit avaliable during the downturn, GM and Chyrsler did not have the credit avaliable which is why they went cap in hand to the government, while Ford did not
    Thats why Bankruptcy would have saved them. Obama did not want this for it would hurt the unions
    Last edited by ptif219; 07-22-10 at 02:53 PM.

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    Re: Harry Reid: Auto Bailout Probably Saved Ford

    Quote Originally Posted by ptif219 View Post
    Tahta wht Bankruptcy would have saved them. Obama did not want this for it would hurt the unions
    GM and Chrysler were very unlikely to get bankruptcy financing at the time of the crisis, meaning bankrupcty could have meant shutting down, not reorganizing
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    Re: Harry Reid: Auto Bailout Probably Saved Ford

    Quote Originally Posted by Lord Tammerlain View Post
    GM and Chrysler were very unlikely to get bankruptcy financing at the time of the crisis, meaning bankrupcty could have meant shutting down, not reorganizing
    I doubt that but nice try

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    Re: Harry Reid: Auto Bailout Probably Saved Ford

    Quote Originally Posted by ptif219 View Post
    I doubt that but nice try
    Not a nice try but the truth. That you doubt something does not make it true

    General Motors was financially vulnerable before the automotive industry crisis of 2008-2009. It came close to insolvency and bankruptcy after falling sales caused a US$4.45 billion loss in 1991.[citation needed] Cost-cutting and management changes restored profitability for the next 10 years.[citation needed] In 2005 the company posted a loss of US$10.6 billion.[16] In 2006, its attempts to obtain U.S. government financing to support its pension liabilities and also to form commercial alliances with Nissan and Renault failed. For fiscal year 2007, GM's losses for the year were US$38.7 billion,[17] and sales for the following year dropped by 45%.[18]

    On November 7, 2008 General Motors reported it had projected it would run out of cash around mid-2009 without a combination of government funding, a merger, or sales of assets.[19] Ten days later General Motors representatives, along with executives from Ford and Chrysler testified about their need for financial aid at a Congressional hearing in Washington D.C. All three companies were unsuccessful in their attempts to obtain legislation to authorize U.S. government aid, and were invited to draft a new action plan for the sustainability of the industry.[20] On December 2, 2008, General Motors submitted its "Restructuring Plan for Long-Term Viability" to the Senate Banking Committee and House of Representatives Financial Services Committee.[21] Congress declined to act, but in December 2008 the Bush administration provided a "bridge loan" to General Motors with the requirement of a revised business plan.[22] It said it needed $4.6 billion in loans within weeks, from the $18 billion it had already requested, and an additional $12 billion in financial support in order to stave off bankruptcy. On Feb. 26, 2009, General Motors announced that its cash reserves were down to $14 billion at the end of 2008. G.M. lost $30.9 billion, or $53.32 a share, in 2008 and spent $19.2 billion of its cash reserves. Mr. Wagoner met with President Obama’s auto task force, and the company said that it could not survive much longer without additional government loans.

    On the March 30, 2009 deadline President Barack Obama declined to provide financial aid to General Motors, and requested that General Motors produce credible plans, saying that the company's proposals had avoided tough decisions, and that Chapter 11 bankruptcy appeared the most promising way to reduce its debts, by allowing the courts to compel bondholders and trade unions into settlements.[23] GM Chairman and CEO Rick Wagoner was also forced to resign.[24] GM bondholders rejected the government's first offer, but the unions agreed to the preferential terms.[25] A bondholder debt to equity counteroffer was ignored.[26]
    General Motors Chapter 11 reorganization - Wikipedia, the free encyclopedia
    The Auto companies came to the government begging for money, they would have gone to the private debt markets if they could have,
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    Re: Harry Reid: Auto Bailout Probably Saved Ford

    Quote Originally Posted by Lord Tammerlain View Post
    Not a nice try but the truth. That you doubt something does not make it true



    General Motors Chapter 11 reorganization - Wikipedia, the free encyclopedia
    The Auto companies came to the government begging for money, they would have gone to the private debt markets if they could have,
    People will lend money if you are in bankruptcy because of the renogtiations

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    Re: Harry Reid: Auto Bailout Probably Saved Ford

    Quote Originally Posted by ptif219 View Post
    People will lend money if you are in bankruptcy because of the renogtiations
    Normally yes, but at the height of a credit crisis, with auto sales tumbling? US auto sales went from around 15 million in 2006 to less then 10 million last year. Given the amount of money that GM and Chrysler needed, the uncertainty of the auto industry in general during that time and the credit crisis still being a major issue such lending was unlikley to occur. Which is why GM and Chrysler went to the government for money rather then Citigroup, or BoA or MS. You know the banks which were getting money from the government at the same time to cover credit loss's
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    Re: Harry Reid: Auto Bailout Probably Saved Ford

    Although Reid is an idiot, he may be right, just not in the way he believes. Because the government didn't bail out Ford, they probably got a good deal of business from people like me who would not buy GM because they were bailed out. My next car purchase will definitely not be from a government-owned business. If it's American, it will be Ford.
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    Re: Harry Reid: Auto Bailout Probably Saved Ford

    Quote Originally Posted by Lord Tammerlain View Post
    Normally yes, but at the height of a credit crisis, with auto sales tumbling? US auto sales went from around 15 million in 2006 to less then 10 million last year. Given the amount of money that GM and Chrysler needed, the uncertainty of the auto industry in general during that time and the credit crisis still being a major issue such lending was unlikley to occur. Which is why GM and Chrysler went to the government for money rather then Citigroup, or BoA or MS. You know the banks which were getting money from the government at the same time to cover credit loss's
    Nice opinion and justification but I see more bias than fact in your post

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    Re: Harry Reid: Auto Bailout Probably Saved Ford

    Quote Originally Posted by ptif219 View Post
    Nice opinion and justification but I see more bias than fact in your post
    What bias.

    Are the following facts or not?
    Auto sales did collapse did they not?

    There was a credit crisis at the time was there not

    The financial institutions that GM could have gotten debtor in financing from were getting bailout by the government at the time were they not.



    The only question would be.

    Who could GM and Chrysler have gotten debtor in financing from at that time?
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