Do you recall that in the first stimulus frenzy last October, the "Big 3" US automakers came to town looking for handouts (some $25 billion)--which they got. Now GM wants more--lots more--or it threatens to file for bankruptcy. I think this is on the order of a mass murderer standing on a bridge threatening to jump after being cornered by police. "Jump!" I say and spare us the costs of trial and incarceration.
Evidently, GM wants to "wipe out" $28 billion in debt. For "wipe out" you should read "screw its bondholders." GM sold bonds to people, and now it apparently wants those people for toss those bonds in the trash. The bondholders did not give GM $28 billion in free money and, sensibly enough, want their money back. Nix that, says GM, and the company now got its army of lawyers poring over bankruptcy law trying to figure out how to legally commit this fraud. And then some.
In bankruptcy GM might try to reorganize itself by screwing everybody it does business with--vendors, suppliers, stock holders, creditors, labor unions, car dealers, and just plain employees. Isn't modern capitalism wonderful? Who needs honesty when you can get the law to give you cover for your crookedness? I say better GM screws them than GM screws us, the taxpayers, again. This literally worthless company should not be saved. Let the bankruptcy court hack it up, sell the parts for scrap, and be done with it.
Read about it here
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