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

To: Alighieri who wrote (594238)	11/24/2010 11:42:32 AM
From: Tenchusatsu	Read Replies (1) \| Respond to of 1580598

Al, nothing in that article invalidates Bill's answer. You're trying to get him to say that, for the long-term survivability of GM, bailout is preferable to traditional Chapter 11 because the finances of the federal government are stronger (despite trillion dollar annual deficits) than any corporation's balance sheet. Unfortunately, nothing is too big to fail ... Tenchusatsu

To: Alighieri who wrote (594238)	11/24/2010 11:56:14 AM
From: Bill	2 Recommendations Read Replies (1) \| Respond to of 1580598

I'm not sure that article supports your position because technically GM did file bankruptcy. It was a government endorsed reorganization plan that was filed under chapter 11, allowing the company to wipe out creditors and certain stakeholders while giving the government a 60% stake. Most of the dire consequences of such a filing outlined in the article did not occur. However, sales did drop over 40% well BEFORE the filing. Of course, the government's involvement was largely to protect the status quo on the labor agreements. The unions received special treatment they wouldn't have received under a normal chapter 11 filing. And of course that is what will ultimately take the company down, in my opinion.