Quote:
Originally Posted by t3chfr3ak
What the problem is with corporations and governments these days is that they believe that in order to get out of debt they have to get into debt. That is the stupidest thing I have ever heard. If you get into high debt, do you go apply for more credit cards and loans so that you can transfer your debt  I just dont understand whats going on. You have companies on the brink of collapse, asking for more money to stay afloat? |
In GM's case, it's called a bridge loan for a reason. They are reorganizing their corporate structure to turn a profit at VERY low industry sales numbers. They are embedding the plans to pay off these loans in their financial plans. It's simply the least dangerous action they feel they can take. And with so many jobs, and an entire Industry on the brink, not just one company...it's not wise not to let the biggest/second biggest fail.
Quote:
Originally Posted by t3chfr3ak
All this and yet they are still paying their corporate heads astounding amounts of money while they lay middle class workers off.  What ever happened to cutbacks from top to bottom? Wouldnt that make more sense? And make the cutbacks higher as it goes up the corporate ladder, since they can afford more to be cutback. It just makes sense, doesnt it? Sorry for the rant.  |
They have taken cuts. Wagoner will be working for a dollar, so his entire income is tied to the shares of GM he owns. And upper-management has taken (if memory serves) some 50% pay cuts and the like. Everyone's being asked to give this this instance. Frankly -- when you look at how the Financial institutions saw fit to handle their assistance...they could take a few pointers from GM, and Chrysler...
Quote:
Originally Posted by RT21
To add to that, what is with the loser companies paying the CEO clown that were instrumental in their collapse more money so they won't leave? +1 |
Depending on the situation, it could very well be that the CEO in question knows too much about the company to replace him/her on a whim and expect to survive.
But I'll assume you're not talking about Wagoner...hate to get into
that discussion again.
