Quote:
Originally Posted by Dragoneye
Why aren't people loaning money to GM, etc? You got me  ...
By asking that question, though, you're mixing in a whole extra industry and their motives + abilities. I mean, how many private equity firms are in a position to freely loan out $25 billion or more to a high-risk venture in this current economy? How many private companies are willing to take that sort of a risk on such a behemoth of a company? (If you or I were in a position to do so...would we??) I doubt it's their business plan that's deterring them...but the fact that they are, in any event, losing money hand over fist and can't seem to stop the bleeding.
I don't know the exact figures...but the market has decreased from 17 billion cars to below 12 billion in not much over a year!!! Holy-crap!! That's like removing 30% of your paycheck next year without telling you. Good Luck! 
The ONLY thing that is going to save them, imo...is a better economy and an improved car market because of it. This loan should be used to tide them over to that point...again, in my opinion.... |
So why should I, I being the U.S. taxpayer, want to make the loan to GM if the risk is so high that people in the business of loaning money are unwilling/too smart to do so?
Let the damn company(s) fail and we will all be better off in the long run.