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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (438615)	12/5/2008 6:44:46 PM
From: Joe NYC	2 Recommendations Read Replies (1) \| Respond to of 1574030

Ted, What I said is that when a borrower is a poor credit risk steps can be taken to protect the lender. One of those is requiring a higher interest. I offered those comments because you were suggesting that GM should not get any money because its a poor credit risk....in fact, that it was unprecedented.....poor credit risks don't get loans. And that's just plain BS. GM is going to be in default on billions of their existing loans in next couple of weeks. Any money going to un-restructured entity like this cannot be called a loan. It is a gift. Now, if GM is losing money hand over fist, if you add one more substantial expense item to their income statement - high interest on a massive loan, how is GM ever going to get out of this substantially deeper hole? Of course, the problem is you don't want to give GM a loan because it runs counter to your ideology. And so like a child, you are throwing up obstacles every which way to keep it from happening. I want the goverment to help GM. A restructured GM - with new union contract or no union contract at all. I think it is counterproductive to structure it as a loan. GM is already too deep in debt. I favor equity investment. This way, the labor cost restructuring retuces labor cost by up to $18B per year, and the help from government does push profitability further away (as a loan would) but brings it closer (as equity would). Joe PS, one way to tell you are out of your depth, when you have nothing to fall back on other than your own ideology, you start talking about the other guys ideology. Did you take any psychology, in your light weight college curriculum? What do you call this behavioral trait? Help me here. Is it projection?