GM 25 billion dollar bailout from government

11/23/2008 07:20:57 PM · #1

I'm doing a business assignment on current events and i'm not aware too much on the subject, but I would love to know your opinions on whether or not GM should receive this bailout or not. I'm thinking no, just because GM was struggling before this whole recession/economic slump, and they are currently burning 1.5 billion dollars a month. But again I don't know much.

Message edited by author 2008-11-23 19:21:34.

Nikon AF-S NIKKOR 24-70mm f/2.8G ED

11/23/2008 07:27:00 PM · #2

Bump

Dr.Confuser

Nikon D800

11/23/2008 07:41:42 PM · #3

If GM would trim the management team by half and cut remaining management salaries by half ...

If they would ground the corporate jets (let 'em fly Southwest), the limos, the fleet cars ...

If the unions would accept average factory salaries of $48/hour instead of current $98/hour ...

If GM would stop paying workers not to work and if the unions agreed ...

If unions and management would agree on defined contribution vs defined benefit plans for pensions ...

If the pensions were recapitalized at a reasonable level ...

If GM cut their lines to Chevy, Cadillac and Saturn ...

Then I could support government convertible loans to GM, or equity investments in GM. But bailing out a company who won't restructure themselves to be in line with the successful "other" auto industry in the US is nutty. Such nuttiness is just throwing good money after bad.

VitaminB

Nikon D800

Nikon AF-S Zoom-Nikkor 28-70mm f/2.8D IF-ED

11/23/2008 07:53:13 PM · #4

I find it amazing that certain auto makers, with all the money they have been making in the last few decades, didnt see the whole fuel economy craze coming, and were left waaay behind in technology for fuel efficient cars. Even at the height of gas prices earlier this summer, they were pushing huge SUVs and trucks.

They dont deserve a bailout IMO... they are archaic companies that could not adequately predict market trends, and should be allowed to fail.

Besides... their CEOs are still making millions, even when the companies they represent are failing.

JMart

Nikon D80

Tamron SP AF 90mm f/2.8 Di for Nikon

11/23/2008 08:06:22 PM · #5

This topic is already under discussion here.

yanko

Canon EOS-5D Mark II

Carl Zeiss 50mm ZE f/1.4 Planar T for Canon

11/23/2008 08:09:13 PM · #6

Correct me if I'm wrong but this is their second bailout, right? They were approved for a bailout shortly before the AIG bailout took place. SNL even did a skit on it this week where they showed a payment plan where each month they would ask for more billions.

11/23/2008 08:14:26 PM · #7

Originally posted by yanko:

haha i watched that yesterday, but i didn't quite understand it :P