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Poll

Question: bail out General Motors ?

Options:

never should have the first time

not this time

yes, but they need a specific approved plan

yes, we have to save our automakers !


Only group members can vote in this poll.

Total Votes: 30

View Results

At first, months back, i had thought.. oh no, we can't let our auto makers go under.. but this is getting worse and worse...  Now i am getting to think.. hmmmm..  throwing good money after bad ??  !!    Maybe we have to face some companies are going under..  and let the market correct itself   ?

do you think we (its our money) should give them more money.. they say they need  30 billion..     

           that's  $30,000,000,000.00    !

 

General Motors posts $9.6 billion quarterly loss

Carmaker burned through $6.2 billion in cash as it sought government aid

AP

DETROIT - General Motors Corp. posted a $9.6 billion fourth-quarter loss and said it burned through $6.2 billion of cash in the last three months of 2008 as it fought the worst U.S. auto sales climate since 1982 and sought government loans to keep the century-old company running.

The nation’s biggest domestic automaker said Thursday it lost $30.9 billion for the full year and expects to state in its upcoming annual report whether its auditors believe the company remains a “going concern.” GM and its auditors must determine whether there is substantial doubt about the automaker’s ability to continue it operations.

Chief Financial Officer Ray Young said the determination will depend a lot on whether GM gets further government loans and whether it can accomplish its restructuring goals.

...   

The company has received $13.4 billion in federal loans since Dec. 31 and says it needs up to $30 billion to stay out of Chapter 11 bankruptcy protection. Top GM executives were in Washington, D.C., Thursday to meet with the Obama administration’s auto task force to talk about restructuring and additional loans.

http://www.msnbc.msn.com/id/29405227/

 

by on Feb. 26, 2009 at 9:41 AM
Replies (21-30):
dr_m
by on Mar. 5, 2009 at 1:44 PM

just saw this... nytimes

 

Auditors Raise Doubts About G.M.’s Viability

DETROIT — General Motors, which has borrowed $13.4 billion from the federal government and is seeking billions more, acknowledged in its annual report on Thursday that its survival was in “substantial doubt.”

...Auto stocks sank across the board on the G.M. filing, and the report was one of the factors weighing on Wall Street. General Motors shares tumbled 15.4 percent, to $1.87. Shares of Ford, which moved to restructure its debt on Wednesday, were down 0.5 percent.

Also, the company said that the compensation of its chairman and chief executive, Rick Wagoner, was reduced to $5.5 million in 2008, 61 percent less than he earned the previous year. Mr. Wagoner has agreed to work for $1 this year.

G.M.’s president and chief operating officer, Frederick A. Henderson, received compensation worth $1.7 million in 2008, a 76 percent reduction. Mr. Henderson agreed to cut his base salary by 30 percent in 2009, to $1.3 million.

..“Our recurring losses from operations, stockholders’ deficit and inability to generate sufficient cash flow to meet our obligations and sustain our operations raise substantial doubt about our ability to continue as a going concern,” the company said in the filing

....G.M. has until the end of this month to reach deals with the U.A.W. and its bondholders and to show President Obama’s auto industry task force that it is making progress on the restructuring plan that it filed with the Treasury Department in February. If it misses the deadline, G.M. would be unlikely to receive the additional loans it says are needed, and the government could demand immediate repayment of G.M.’s outstanding loans.

...G.M. added, “We have not received any commitment with regard to the additional proposed borrowings from either the U.S. government or any foreign governments, and there is no assurance that we will be successful in obtaining the additional governmental funding we will need to continue to operate our business.”

 

well, i think they will not really survive,  i hope they don't get the bailout.. usually i can't decide on things like this... 

 

canthaveboys1
by on Mar. 5, 2009 at 1:48 PM

Im tired of giving and giving, lets be real will they ever be able to pay it, probably not. 

I am a chevy driving, drug free, unmarried, cell talking, bitchy, co sleeping, formula feeding, spanking, animal loving, working kind of mommy Not looking for your damn approval! teen girlgirl on a swingtoddler girlbaby girl

dr_m
by on Mar. 7, 2009 at 12:12 PM


Quoting canthaveboys1:

Im tired of giving and giving, lets be real will they ever be able to pay it, probably not. 


good point.. 

 

chattymama92
by on Mar. 7, 2009 at 4:39 PM


Quoting momof1wildchild:

My answer is hell no. I don't think we should've bailed them out the first time. I am absolutely sick to death of how these companies are throwing the money around. Parties. Bonuses to their upper management.

If the government wants to print more money for the sake of having something to do, how about sending it to the people who need it the most...the tax payers who are struggling to pay their bills, make their mortgage payments, pay their kids' tuition, etc?

These large companies got themselves into the situations they are now in. Let them figure out a way to make do with what they have.

This really pisses me off. 

I couldn't have said it any better. Let them figure out another way to kep from going down in ashes. It's not my job as a taxpayer who has to work her fingers to the bone to pay MY bills, to foot the bill for a big conglomerate. Do you think they'd help me out if I were in a pinch and begging for their money? Hell no.

IrishRocker
by Member on Mar. 7, 2009 at 11:00 PM

They shouldnt have been given money in the first place!! They need to seel theyre private jets, cut the CEO bonuses and BAM youve got your bailout! Do people realize how much fancy private jets like that cost?? An amazing single engline plane is worth almost $100,000. Think of the glitzy planes theyve got, plus the pilot to fly it. And pilots cost a pretty penny. Theyd be better off flying first class. I say we get the original money back and make the pansies work for their money!



***EDIT***

So i just checked the cost of a couple used business jets-in the millions!! One was $20 mil!! Yes, and our tax money is going to bail these guys out.

Eilish
by on Mar. 7, 2009 at 11:08 PM

Our government never had the money to begin with, so NONE of bailouts should've ever happened. You can't bailout someone when you have a multi-trillion dollar deficit.

Quoting Cafe GroupAdmin:

I think it would be nice if the US could help everyone in need - but our gov't is running out of money and our economy os in big trouble.

How could they even consider giving them (or anyone) $30 billion?? 


goldenraysofsun
by on Mar. 7, 2009 at 11:15 PM

This news is really sad to me =(

If it was only GM having financial troubles, I wouldn't like it, but I would say yes.

However, the whole country is in despair. Our government doesn't have the money to bail out GM. They are already indebted with our kids and grandkids enough as is. Company's all over are going out of business, closing stores and downsizing their company's. A government business here in my state, a loan company (college loans) has already been bailed out by the state and still doesn't think it can stay afloat. I would say college loans are more important then Pontiac. 

What worries me though is that this will create a surge of unemployeed people and I worry what that would do to our already crumbling economy.  

Unemployment is now a little obver 8%, there are no jobs anywhere. My husband is looking for a pt job because he is getting nervous about the economy and he can't get a job. He decided to apply at McDonald's of all places, he thought for sure he could at least get hired there to cook or something in the meantime. But, the manager said they haven't been hiring for months. In fact, he said he could use to get rid of a few people.  

PestPatti
by on Mar. 8, 2009 at 11:50 AM


Quoting KC33:

 Well one of you econonimc majors needs to explain  a few things to me.

 How will our country recover with 3 million jobs permanently eliminated?

Why is every country in the world making saving their manufacturing jobs their #1 priority but the geniuses here think saving the banks which produce nothing is more important then saving jobs?

How will you afford your rice burners when there is no competition in the market?

How will you feed your kids when the entire economic system fails?

      Good luck finding an answer. 

dr_m
by on Mar. 8, 2009 at 11:50 AM


Quoting goldenraysofsun:

This news is really sad to me =(

If it was only GM having financial troubles, I wouldn't like it, but I would say yes.

However, the whole country is in despair. Our government doesn't have the money to bail out GM. They are already indebted with our kids and grandkids enough as is. Company's all over are going out of business, closing stores and downsizing their company's. A government business here in my state, a loan company (college loans) has already been bailed out by the state and still doesn't think it can stay afloat. I would say college loans are more important then Pontiac. 

What worries me though is that this will create a surge of unemployeed people and I worry what that would do to our already crumbling economy.  

Unemployment is now a little obver 8%, there are no jobs anywhere. My husband is looking for a pt job because he is getting nervous about the economy and he can't get a job. He decided to apply at McDonald's of all places, he thought for sure he could at least get hired there to cook or something in the meantime. But, the manager said they haven't been hiring for months. In fact, he said he could use to get rid of a few people.  

i find it really sad, too, but it's not just the big three auto..  it's a lot of the big cos and banks...

i still dont know what the govt is going to do.. did they decide ?  they talked about it on todays am talk shows, so i dont think it's decided..  they said uaw put the cos under..  its prob a combination of that and etc..    prob let the free market decide finally,   some are just not going to make it..      eg  circuit city...

i think hollywood will make it..   and fast food ... !


 

PestPatti
by on Mar. 8, 2009 at 11:53 AM


 

Quote:

It just makes no sense to me to make ppl who work for minimum wage and above to bail out companies so they can pay their employee's (who have only a high school degree) up to $75.00 an hour to work, not to mention keep up their benefits while some min wage workers don't even get benefits

      Benefits are not a right.  Its up to indivual companies to decide if or what benefits they offer you.     The only thing an employer is required to do is PAY you a WAGE.   

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