Quote:
Originally Posted by Dragoneye
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.
|
You know as well as I do if Chapter 7 occurs that Toyota and Nissan will buy the plants at real cheap and take over employment for many of those lost jobs if they accept the pay cut that is.. It's not all black and white economics as if no other forces exist that can stop the bleeding.. However if GM files for Chapter 11, they will still get the same Government help and money but without all of it going towards the Union which is like a broken record and does not work as we have already seen. If GM had filed for Chapter 11 before the first bailout auto loan, then I think they'd be in a much better situation right about now because the money wouldn't have all been misspent....