Professor Elam

Accounting & Investing Info for San Antonio A & M

recent posts

about

GM Chrysler Update

President Obama is in Denver today, Speaker Pelosi is on an 8 day trip to Italy, Secy State Hillary is in Asia, Geithner is in Europe or some other place

so I guess GM is not high on their priority list.  Apprently GM and Chrysler will submit their written plans on re organizing after the markets close today.  And that will be taken under consideration by the Feds.  I can only speculate and that is all this is, that another PR disaster on television should be avoided. GM and Chrysler have done a lot but of course the unions balked.  Compared to the stimulus bill of $787 B the few billion it would take to help here is not a lot.

We are talking a sort of govt sponsored bankruptcy forcing bondholders and unions to take less. But the govt will have to provide cash for GM Chrysler to stay in business they are tapped out at the banks.

Markets are opening lower and Dow is testing previous lows.

Posted in

2 responses to “GM Chrysler Update”

  1. Cresencio R Davila Avatar
    Cresencio R Davila

    With the Obama administration in bed with the Unions, it seems like more of the pressure will be on the Automakers to make adjustment. Either way, I see more money flying out the door to keep these companies afloat. There is no way in hell this administration is going to let the UAW tank. Just like this big Stimulus package seemed more like a BIG THANK YOU to all those groups that helped Obama get into office, this will be a big pat on the back for the unions.

    Like

    Reply
  2. Dennis Elam Avatar
    Dennis Elam

    Tonite GM and Chrysler need more than originally projected, surprise, and Obama is talking tough about bankruptcy
    I suspect this will be a bankruptcy orchestrated by the govt but outside court as the govt will have to loan them the money to stay in business, I do not see letting these jobs go in this economy
    dle

    Like

    Reply

Leave a reply to Dennis Elam Cancel reply