Quote:
Originally Posted by Hylton
Yes and plenty more than 8 billion. The key is that GM will be a strong company to go forward after a chapter 11 bankruptcy. Assume it get's 8 billion from the White House, what does that do with respect to going forward? Nothing - it just buys another 2 months of keeping it's head above water. They will still be burning through 4 billion a month after the money and will have to come back to the trough yet again. A pre-arranged bankruptcy can actually put them in a position to make money every month instead of losing 4 billion every month.
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So does their own plan. Without the associated risks of bankruptcy. It puts them in a position to make money at 12 million units a year. Well under the 17 million average for the past decade.
And remember, this billions of month thing is not entirely of their own doing. If the economy hadn't tanked, and nobody expected it would go this poorly, they wouldn't be asking for this loan at all.