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

To: Joe NYC who wrote (438646)	12/6/2008 4:34:38 PM
From: tejek	Read Replies (1) \| Respond to of 1574096

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. No one said GM would be left un-restructured. 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? The goal of restructuring is to reduce costs so they can break even with high interest costs on the loan. Elimination of job banks and the selling of the corp. jets are excellent steps in that direction. 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). Personally, I am not for equity involvement......that makes the gov't too enmeshed in the affairs of GM. A loan keeps things more at arm's length. 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? Oh please.....don't talk to me about human psychology. The only thing you guys know about human psychology is that you like money and you're paranoid. I keep bringing up your ideology to show you how inflexible you all are. Even when disaster is imminent and every knows it, you all refuse to budge an inch. That's why this country is in the mess its in after 8 years of Bush. And its why you all lost control of Congress and the presidency.