GM: company faces a March 31 deadline

[Supermans]

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....

[dbotsfordtat]

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.

Yea, but manufacturing is so yesterday. America will send that to the third world and we'll have all the new jobs, like financial services.

[dbotsfordtat]

Originally Posted by rmyers

I agree 100%. My point however was that they at least have a choice, where as we don't. We are compelled to contribute to SS but they are not.

Hey we get to agree on something! I personally would like to have my self-employment tax invested with UP and receive Railroad retirement, but I would settle for making congress and the executive branch participate in the programs they have created for us mere mortals.

[Mr. Wyndham]

Originally Posted by Supermans

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..

You're talking about no black and white, and you think something like this is that simple?

Originally Posted by Supermans

It's not all black and white economics as if no other forces exist that can stop the bleeding..

The bleeding IS the economy. If they aren't selling anything, NOTHING's going to help.

Originally Posted by Supermans

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.

First of all, there is no gaurantee that they'll get the money they need in Chapter 11. You didn't read that viability plan I mentioned a while back, did you? Second of all -- the Union is working fine. Of course it has some imprefections, like any large organization. To blindly blame them (even indirectly) is wrong, and lends very little credibility to your thoughts on the subject, because they are obviously skewed agains the UAW. They're working in sync with the company (believe it or not), and have made cuts and concessions where possible without paying its trained employees dirt as some seem to want done. Besides that, what evidence do you have that the first round of loans went "to them". Do you realize how silly that sounds?

Originally Posted by Supermans

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....

Again, what evidence do you have that it was "misspent". I'm of the opinion, and I could be wrong, that you believe Chapter 11 is some miracle cure, and therefore anything except that is a 'waste' or won't work. Which is absolutely not the case...