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Politics : Mainstream Politics and Economics -- Ignore unavailable to you. Want to Upgrade?

To: research1234 who wrote (33431)	11/6/2012 4:08:46 PM
From: TimF	6 Recommendations Read Replies (1) \| Respond to of 85487

Bankruptcy cleans up the balance sheet. In any case you where the one complaining that without intervention the auto industry would have been foreign owned. Chrysler still wound up foreign owned, and Ford wouldn't have been with or without the intervention. So the intervention was neither necessary nor sufficient to prevent foreign ownership. Meanwhile seeing how the bond holders got hosed for the benefit of the unions, it might cost GM more in the long run to raise capital. Not just GM, but any politically favored unionized company. Who wants to lose their senior posision at the whim of government? Better to just get more interest for being less senior, then to think your going to get top priority in a bankruptcy and have the government yank that away.