Quote:
Originally Posted by trm0002
The media makes it sound like 10s of thousands of people will lose their job if GM goes chapter 11. Got news for you- they ALREADY have lost their jobs.
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If GM goes chapter 11, there is significant risk that they fall right into Chapter 7 liquidation. IF that occurs, then the media has nothing to do with it, because independant studies have confirmed the numbers:
If GM goes down via Chpt 7, 3
MILLION jobs will be lost within the first year and the other two detroit companies will fail soon after. Over the next 2 years, 2 more
MILLION jobs will be lost and the import companies will begin to hurt BAD. And those are mid-range expectations. Some estimates have it as high as 11 million total.
Even on the low end, if they go down, it will raise the unemployment rate to 10%+, and analysts fear that number like the plague.
This, of course, is not to mention that America will have lost it's last big manufacturing and innovating sector.
Either through a meticulously structured and guaranteed Chapter 11 filing, or more loans -- GM will not be allowed to fail.