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Why wasn't GM allowed to file Chapter 11 when Chapter 11 was designed exactly for companies that aren't performing up to free market standards? That's what Chapter 11 was designed to do!

Simmering Frog 2012/08/12 07:34:29
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  • Elwood Blues 2012/09/05 06:26:04 (edited)
    Elwood Blues
    +2
    GM did file chapter 11 as part of the government bailout. See http://blogs.wsj.com/autoshow... -- it contains a link to the text of the filing.
    Or see http://www.bloomberg.com/apps...
    http://www.motorauthority.com...

    Just out of curiosity, where did you hear that GM *didn't* file? I've seen this false claim pop up elswhere, and I wonder who is misleading the public.

    The bailout and the managed chapter 11 filing are the only reason GM didn't file chapter 7 liquidation.

    In this NY Times op-ed piece http://www.nytimes.com/2008/1... titled "Let Detroit Go Bankrupt" Romney argued against money for the car companies. Here's a quote: "But don’t ask Washington to give shareholders and bondholders a free pass — they bet on management and they lost."

    Later, Romney tried to take credit for the whole auto industry bailout / turnaround thing:

    http://news.yahoo.com/romney-...
    http://articles.businessinsid...
    http://abcnews.go.com/blogs/p...
    http://money.cnn.com/2012/05/...
    .
    GM did file chapter 11 as part of the government bailout. See http://blogs.wsj.com/autoshow... -- it contains a link to the text of the filing.
    Or see http://www.bloomberg.com/apps...
    http://www.motorauthority.com...

    Just out of curiosity, where did you hear that GM *didn't* file? I've seen this false claim pop up elswhere, and I wonder who is misleading the public.

    The bailout and the managed chapter 11 filing are the only reason GM didn't file chapter 7 liquidation.

    In this NY Times op-ed piece http://www.nytimes.com/2008/1... titled "Let Detroit Go Bankrupt" Romney argued against money for the car companies. Here's a quote: "But don’t ask Washington to give shareholders and bondholders a free pass — they bet on management and they lost."

    Later, Romney tried to take credit for the whole auto industry bailout / turnaround thing:

    http://news.yahoo.com/romney-...
    http://articles.businessinsid...
    http://abcnews.go.com/blogs/p...
    http://money.cnn.com/2012/05/...
    .
    (more)
  • Ted Baxter Elwood ... 2012/09/07 01:47:54 (edited)
    Ted Baxter
    +1
    I heard Neil Boortz make this claim today. He said the only reason the auto bailout was done was to protect the labor unions and the companies would be just fine today without the government help.
  • Simmeri... Elwood ... 2012/09/07 06:06:24
    Simmering Frog
    Wrong. GM filled for bankruptcy after the bailout.
  • ☆stillthe12c☆ 2012/08/13 04:42:23
    ☆stillthe12c☆
    The President wanted to protect the unions While he took care of them and there retirement he let the other workers lose most of their retirement and only paid pennies to the stockholders. If they would have gone chapter 11 the union workers would have had to give up much of what they have now and their stock in the company would have suffered just like everybody else.
  • Simmeri... ☆stillt... 2012/08/14 00:34:51
    Simmering Frog
    To which I reply, "And So what?"
  • ☆stillt... Simmeri... 2012/08/14 00:49:25
    ☆stillthe12c☆
    They were part of my portfolio as it was for millions of other.
  • Simmeri... ☆stillt... 2012/08/14 14:42:09 (edited)
    Simmering Frog
    And so what? The company wasn't performing and continues to perform poorly. How many bail outs is this turkey going to get?
  • ☆stillt... Simmeri... 2012/08/14 17:40:20
    ☆stillthe12c☆
    This was not a bailout. The Government now owns part of the company. A Company that now purchases 70% of it parts from outside the U. S. While we own a part of it is now a member of a communist Chinese organization in China.
  • heirsoftheking 2012/08/12 22:36:04
    heirsoftheking
    Obama and GM sleep together. I'd still never touch a GM. Government Motors and General Junk!
  • jackolantyrn356 2012/08/12 15:29:44
    jackolantyrn356
    +1
    Obama was going to show America the joys of Marxism.
  • Waldorf 2012/08/12 14:36:17 (edited)
    Waldorf
    It was, in effect, a bailout of GM suppliers and contractors, who would otherwise have been forced to accept huge write downs and even go out of business themselves. The entire industry is too big to fail with the abruptness of a bankruptcy.
  • Schläue~© 2012/08/12 09:54:40
  • MichaelJ 2012/08/12 09:39:20
    MichaelJ
    Frog, that is the conversation our democratic friends DO NOT WANT TO HAVE! They would prefer to claim that the President, like SUPERMAN came to the rescue like a speeding bullet!!! He saved all those jobs in a huge sector of the economy. They certainly don't want to hear that bankruptcy would have achieved the same thing.... well except that the President's ground troops, better known as the UAW wouldn't have come out of bankruptcy owning 25% of the company and it wouldn't have FLUSHED 50 billion borrowed US dollars that the rest of us are on the hook for.
  • Roger 2012/08/12 08:51:30
    Roger
    +1
    The bailout of GM wasn’t a bailout of the company. It wasn’t a bailout of its shareholders, who lost everything… or its bondholders, who lost almost everything. Where did the money go? To the union. The United Auto Workers (UAW) ended up with all the money. It was a payoff for past and future votes.

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