White House: Bankruptcy May Be Leading Option for GM

Would someone please tell me why a former community organizer who supposedly sided with the poor and working people would reward the banking industry and threaten to close the last remaining dregs of our auto industry and the jobs associated with it? Has anyone done an independent (as in not republican, libertarian, or democrat) investigation into his work history in Chicago?

jan: The banking industry has not been rewarded, it is being kept functioning to supply a service necessary to the economy (it would be a bit disrupting if credit cards were canceled by the tens of millions the same week that a third of companies were unable to make payroll). Many banking CEOs have been fired, banks have forced into buyouts, and criminal charges bandied about for the worst of the CEOs.
And Obama isn’t threatening to close the auto industry, he is offering to save it. Sorry if he isn’t offering enough tens of billions of our dollars with no strings attached to the current incompetent management to make you happy, but the goal is self-sustaining companies not nationalized auto plants.

Anyone with just an ounce of sense said in the beginning of this mess that they should be allowed a structured bankruptcy and now after billions in the crapper a sliver of something that resembles sense is mentioned. But the banks are getting to skate and so are some of the worst politicians who were complacent in watching banks and federal agencies fleece all of us.
Now let us all hope that Obama doesn’t pick Franklin Raines to head up GM.

Lots of companies go Chapter 11 and not only survive, but restore business. It buys the new management time to refocus and reorganize. The creditors are the ones who may be either hurt or inconvenienced, but they could profit in the long run.
The question is, why is the government even involved? Chapter 11 was always an option until the government began to wave money and use the Las Vegas ploy of allowing a small win to bait the mark. And some CEOs fell for it.
But Obama and crew have established that they are in charge and recovery will be their way. Naw, we know better. The laws of economics are in charge.

Bankruptcy should have been the only option from the very beginning.

Good luck in 2012, Obama… you just lost Michigan and Ohio!! Thanks for betraying us! You were supposed to save GM, not destroy it! What’s wrong with you? Don’t you remember who worked so hard to get you elected? How could you betray us like that?

Mike:”Good luck in 2012, Obama… you just lost Michigan and Ohio!! Thanks for betraying us! You were supposed to save GM, not destroy it! What’s wrong with you? Don’t you remember who worked so hard to get you elected?”
What’s wrong with you? Obama had NOTHING to do with the stupid business decisions that doomed GM, he’s just asking them to shape up a bit before giving them even more corporate welfare. (As a sidenote, he would have still won the presidency easily without Michigan or Ohio’s vote.)

NEWS FLASH>>>>>>>>>>
REUTERS NEWS. The new and revitalized General Motors Company unveiled its newest line at the 2010 Detroit auto show. Car industry critics were impressed with the “OBAMA” car…ZERO carbon emissions…………100 mpg……and with the latest UAW endorsed extras…….AC and a 10,000 mile extended warranty. When asked about the rumors concering the cars’ questionable gas mileage, a UAW spokesperson was quoted as saying the new Obama car ran on the flatulence of humans and cows. When pressed further the spokesperson would only say that “We’re still trying to figure out how to capture the energy source.”

Well, something to ponder for ALL you deep thinkers..given what happened when Lehman bros failed..what do you suppose would have been the end result had the big 3 failed…Aig failed..which would have brought down all the other major banking institutions..goldman sachs bear stearn citi corp..just one failed and it was a world wide panic..you morons who are calling for everything to” just fail”-need to have a brain transplant..as angry as i am at haveing to bail them out..I am not going to try and kill a fly on the wall by shooting off a nucleor weapon..use some common sense. I feel sorry for the president who has to lead such a mob of imbeciles

Funny how the republicans already proposed bankruptcy protection for the autos and the private sector buying the banks toxic assets. For a community organizer Obama is not very original. Sure hope he doesn’t bankrupt the country with a budget that is triple Bush’s excessive yearly spending. And in a recession no less!

What most of you appear to fail to see is the fact that Obama is buddy-buddy with the fat cats on Wall Street and letting a company that employs average Americans go bust. He’s done what the republicans would have done. But whatever. Enjoy your little delusions.

Marie D. | Mar 31, 2009 3:01:04 AM….and Obama still want a CAP & TRADE tax for the Global Warming that is not happening (at a time that we cannot afford more burdens).

The CEO of GM got fired. What about all of the incompetent people in Washington? We need to replace them!

Sounds like the tone of comments in here favors the Chapter 11 option, as does the OneBigAssMistakeAmerica administration, finally. This option was always available, based on well-proven law, and the obvious solution for, not destroying, but assuring the survival of these companies. Probably the gang that can’t shoot straight was reluctant to use the existing law because their constituents, the UAW, opposed it. Well, the UAW AND those clowns in Washington just got a dose of realty, and it only cost us taxpayers a few hundred billion.
Now, as Mike_C notes, lets see how much it will cost us for them to discover they’re too incompetent to run our health care and education “industries”.

Darryl,
A. what does his “curiousity” have to do with anything?
B. Members of his administration were also players in creating “the largest systemic (potentially catastrophic) issue(s) than any since FDR”
C. “Any single issue could/would be daunting but to have them literally stacked up like proverbial domino’s, with the intense interrelatedness is unparalleled.” – If this is so, then WHY is he BSing around with healthcare & eduacation when he STILL has not filled many postions at Treasury????
This was “supposed” to be the ultimate in critical problems. Remember how your “right man” spent most of his first month in office telling us virually everysingle day that we need to pass the “Stimulator” or we would risk turning a crisis into catastrophe!
So Congress shoved it through & then we find out that language to prevent the AIG bonus scenario was put in, removed, modified by Treasury staff?, aides?,..in a closed door final write up. Then those who ‘supposedly” had important language in the bill did not even read the final version.
Then we get the GREAT FAKE OUTRAGE and the incredible hieght of ARROGANCE from Barney “the new McCarthy” Frank and his insane demands of wanting to publically call out the AIG people who LEGALLY were given bonuses. (LEGALLY – because of the stupidity of the Congress & the administration!)
D. “That said, where is the parity? the auto industry, GM especially, is being asked/demanded to restate or tear up contracts that are on the same level of the ones that just a few days ago, in a separate industry were golden?” – If the goverment had staye dout of the auto inductry to start with, they would have been forced by the bankruptcy system to re-nogiate those contracts anyway! The end result of of government intervention was the waste of billions of dollars! Nothing more!
Now…lets go back for a minute at just touch on healthcare. I will state it again…..
Why would any sane person actually believe that the government can do anything with a universal healthcare system BESIDES completely & totally screwing it up…..

I couldn’ care less about what the EU thinks of America. It is incredibly jealous of the USA and along with American liberals, blames the USA for every single world problem we face right now.
I imagine no matter how much the EU is supposedly “balking” at BO’s plans for the auto industry, they will still adore him because he will continue the LONG-STANDING tradition of liberals in power, and apologize for all of the evil America has done around the world.
Because of this apologist attitude and their unfettered support for America’s enemies, liberals need to start wearing “i support al-queda” shirts, so that they can be more easily recognized amongst the public.

The republicans don’t want to talk about it, but both the Bush’s, along with Cheney and crowd was saddled up with the Saudi Oil cartels, and fought all technological advances for fuel efficiency vehicles, or inventions that would increase gas mileage because they were making millions by squelching the new technology. For years, it was common practice for the auto industry to by up inventions that improved gas mileage. The inventors received a million or so, the inventions mothballed, and everyone kept their mouths shut as the smiled all the way to the bank. All the while, the big three kept building bigger, heavier gas guzzlers that added tons of pollutants into the atmosphere, which contributed to global warming. The Bush’s made millions, and the big three kept getting republican sponsored legislation, a gratuity here and there, to stifle the technological advances for fuel efficient cars. Anyone around during these eras new what was happening. It wasn’t a big secret. Now, do they really think that we care if the big three have to file bankruptcy? Not only no, but hell no. Don’t let the door hit them in the butt when they go to the office to file.

nice, really nice!