Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: Katelew who wrote (406209)	1/23/2011 5:37:23 PM
From: rich evans	1 Recommendation Read Replies (4) \| Respond to of 794327

Government had to intervene. There was no other way or entity. This was not an ordinary Ch 11 proceeding. No reorganization was possible without the Gov. So liquidation would mean a loss of about 1 mill jobs and all those assets which were a liability and unmarketable.. Same with Chrysler although the costs were less and job loss would have been 300000. The economy and nation could not have handled such massive economic disruption. The Goverment will get their money back if they sell their shares for $53/sh. Present price is about 38. And they are off the hook for GM Pensions. All in all it was cut your losses short for the nation and a better result then any alternative. As the BR judge said in the hearings on the 363D sale to the bondholders: Ok, supposing I agree with you. What is your alternative. They had none. So what was the Judge to do? It was the only way to Reorganize which is what CH11 is all about. Rich