View Poll Results: Would General Motors Be Alive Today Without Government Help?

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  • YES (please state how)

    9 31.03%
  • NO, the assets would be liquidated.

    20 68.97%
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Thread: Would General Motors Be Alive Today Without Government Help?

  1. #1
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    Would General Motors Be Alive Today Without Government Help?

    Would General Motors Be Alive Today Without Government Help?

    YES (please state how)
    NO, the assets would be liquidated.


  2. #2
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    Re: Would General Motors Be Alive Today Without Government Help?

    Did you see recently Mitt Romney campaign spokesman saying that it was his idea to Bailout GM and obama followed his lead...LOL

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    Re: Would General Motors Be Alive Today Without Government Help?

    When companies get in trouble, they can file for bankruptcy. It's called Chapter 11.

    Chapter 11
    This is where a company gets to delay their payments to their debtors, is allowed time to accumulate revenue, restructure and reorganize via a structured plan, which is what they did. They sold off assets to create cash. The Governments 350 million or whatever amount was used to bail them out wasn't needed and shouldn't have been provided. Too big to fail not only still exists, but is bigger than ever. Lessons learned? When you're too big to fail, you don't have to learn... gubamint bails you out.
    “I think if Thomas Jefferson were looking down, the author of the Bill of Rights, on what’s being proposed here, he’d agree with it. He would agree that the First Amendment cannot be absolute.” - Chuck Schumer (D). Yet, Madison and Mason wrote the Bill of Rights, according to Sheila Jackson Lee, 400 years ago. Yup, it's a fact.


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    Re: Would General Motors Be Alive Today Without Government Help?

    They would have been better off if they reorganized without government help.

    GM should look toward Honda for reorganization tips (as mentioned in this video):


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    Re: Would General Motors Be Alive Today Without Government Help?

    Quote Originally Posted by lpast View Post
    Did you see recently Mitt Romney campaign spokesman saying that it was his idea to Bailout GM and obama followed his lead...LOL
    Yes, I did, in fact it inspired the poll. To be fair, he wrote an op-ed in the Detroit News which said for the government help.


    Fehrnstrom Says Obama Took Romney’s Advice On Auto Bailout | TPM2012


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    Re: Would General Motors Be Alive Today Without Government Help?

    Quote Originally Posted by Ockham View Post
    When companies get in trouble, they can file for bankruptcy. It's called Chapter 11.

    Chapter 11
    This is where a company gets to delay their payments to their debtors, is allowed time to accumulate revenue, restructure and reorganize via a structured plan, which is what they did. They sold off assets to create cash. The Governments 350 million or whatever amount was used to bail them out wasn't needed and shouldn't have been provided. Too big to fail not only still exists, but is bigger than ever. Lessons learned? When you're too big to fail, you don't have to learn... gubamint bails you out.
    You were not specific, what about General Motors in the middle of the biggest recession since the Great Depression? Who would invest in a company with declining sales and hundreds of thousands of people losing their jobs per month? GM may have been too big to fail, but that exactly what would have happened if the Government didn't step in.


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    Re: Would General Motors Be Alive Today Without Government Help?

    Quote Originally Posted by pbrauer View Post
    You were not specific, what about General Motors in the middle of the biggest recession since the Great Depression?
    Because the recession had no impact on the ability of a Chapter 11 filing, nor were credit markets needed or involved in Chapter 11 filings.

    Quote Originally Posted by pbrauer View Post
    Who would invest in a company with declining sales and hundreds of thousands of people losing their jobs per month? GM may have been too big to fail, but that exactly what would have happened if the Government didn't step in.
    Chapter 11 is not a time to invest... the purpose is to sell off failing parts of a business, reduce spending, re-organize and correctly size the company. However to answer your question, if the steps taken AFTER Chapter 11 were seen favorably by the market, investment comes from the private sector just as investment occurred in the 1930's during the depression.
    “I think if Thomas Jefferson were looking down, the author of the Bill of Rights, on what’s being proposed here, he’d agree with it. He would agree that the First Amendment cannot be absolute.” - Chuck Schumer (D). Yet, Madison and Mason wrote the Bill of Rights, according to Sheila Jackson Lee, 400 years ago. Yup, it's a fact.


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    Re: Would General Motors Be Alive Today Without Government Help?

    No they wouldn't and thank George Bush for getting that ball rolling:

    http://www.nytimes.com/2008/12/20/bu...o.html?_r=3&hp

    But ultimately we will have to go through this again. Because per Al Gore "They keep trying to sell large, inefficient gas-guzzlers even though fewer and fewer people are buying them."

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    Re: Would General Motors Be Alive Today Without Government Help?

    Quote Originally Posted by Ockham View Post
    When companies get in trouble, they can file for bankruptcy. It's called Chapter 11.

    Chapter 11
    This is where a company gets to delay their payments to their debtors, is allowed time to accumulate revenue, restructure and reorganize via a structured plan, which is what they did. They sold off assets to create cash. The Governments 350 million or whatever amount was used to bail them out wasn't needed and shouldn't have been provided. Too big to fail not only still exists, but is bigger than ever. Lessons learned? When you're too big to fail, you don't have to learn... gubamint bails you out.
    bingo, thank you. GM would still be making cars today had she been allowed to go into bankruptcy.

  10. #10
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    Re: Would General Motors Be Alive Today Without Government Help?

    Quote Originally Posted by cpwill View Post
    bingo, thank you. GM would still be making cars today had she been allowed to go into bankruptcy.
    GM went through Chap. 11 bankruptcy. The US government provided Debtor in Possession financing rather than a financial institution (JPMorgan, Citi, etc) due to the market environment at the time. The financial institutions at that time were highly unlikely to provide such financing. Without Debtor in Possession financing GM would have been liquidated.

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