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The Stalls of Higher Thought

GM and Chrysler Claim They Shouldn’t Fail For National Security Reasons. I Shit You NOT!

with 2 comments

gmchrsylerdrainCNN/Fortune: Why should U.S. taxpayers give General Motors another $16 billion in aid? After all, just two months ago the ailing carmaker claimed the first $13 billion would do the trick.

Because, as the company’s executives argue in the recovery plan they submitted to the Treasury on February 17, letting GM fail and file for bankruptcy protection would require a stonking $100 billion or more in financing, the vast majority provided by the U.S. government. That makes its latest appeal for help look like chicken feed.

It’s the latest twist in GM’s argument against entering Chapter 11 bankruptcy protection, following on from last year’s claims it would upend the U.S. economy, eliminate more than three million jobs and imperil national security.

Chrysler has adopted a similar approach, asking for another $2 billion – it’s already got or been promised $7 billion – and claiming bankruptcy would cost up to $25 billion.

bspcommentHere we go with the full court press of the Shock Doctrine. GM and Chrysler have obviously run out of bad reasons why they should not be let to reorganize under under Chapter 11 and rebuilt. This is ultimately what GM and Chrysler fear. That they will be forced to reorganize.

This idea that somehow America can just print the money to bailout every large business is nuts and will ultimately cause the US dollar to collapes faster and farther than people like Peter Schiff are forecasting. Oh and Peter Schiff is the American financial analyst who started talking about the financial mess the world is in now back in 2002!


Written by mattliving

February 18, 2009 at 10:02 pm

2 Responses

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  1. Is GM Playing Both Ends Against the Middle? Or Perhaps another way of saying it: “Do you really trust a car salesperson?”


    Tom Awtry

    February 19, 2009 at 9:18 am

  2. Or more importantly car salemen that show up asking for BILLION$ in a corporate jet! 🙂


    February 19, 2009 at 9:39 am

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