Monday, June 1, 2009

Here's one for GM

Piece of Shit Car ~ Adam Sandler (Language warning)

GM has filed for bankruptcy today. I know it is going to have a huge impact, but GM still does not get it.
Financially, GM is upside-down, GM owes $172 billion.
The guvmnt/ Federal Treasury will throw another $30 BILLION 
bucks at the problem, in addition to the $19.4 BILLION we
already "donated".
The Federal Treasury will own 60% of GM in this bankruptcy 

Although the media has been telling us lately we are "in a recovery", the truth is, and in all
fairness, GM made some decent vehicles, but the economy is still depressed, so
people are not buying new cars when they don't have jobs & their homes are
being foreclosed. GM may reorganize in Chapter 11 Bankruptcy, but that will not change
the other facts about the economy. Plus, rightfully so, buyers will be skiddish about purchasing such
a big ticket item from a company that is clearly in financial trouble.
I'm not sure GM USA will recover from this bankruptcy. GM stock dropped to .75 cents a share last week-
the last time it was that low was 1939.

From the NY Times:
The company will also have to shed 21,000 union workers and close 12 to 20 factories, steps that most analysts thought could never be pushed through by a Democratic president allied with organized labor.

Forty percent of the company’s 6,000 dealers will close, the workers’ union will be forced to finance half of its $20 billion health care fund with stock of uncertain value in the restructured G.M., and bondholders, including many retirees, will be forced to take stock worth 10 cents for every dollar they lent the company.

G.M. will also lose its spot on the Dow Jones industrial average, a key stock-market gauge of 30 blue-chip stocks. The car maker had been a member of the closely watched stock index since 1925.

“It is unacceptable to ask U.S. workers to subsidize the exportation of their own jobs,” said Representative Dennis Kucinich, Democrat of Ohio, whose district includes Cleveland. “The taxpayers’ investment should be used to protect American plants so that American workers can build the next generation of automobiles.”

G'day Shareholders!

Economy in recovery? I don't think so.

No comments: