drieuxster (drieuxster) wrote,

Why not let GM go for Chapter 11 protection?

Clearly that is a part of the question on the table.
Wagoner could be right about that. But again, GM is headed for bankruptcy without government intervention. So any government intervention ought to be structured like a bankruptcy: Current shareholders wiped out (they're almost there already), debt converted to equity, top management out. We could just, for the sake of not scaring car buyers, call it something else. "Government-arranged workout"? "Bailoutruptcy"? "GMerdämmerung"? "Economic stimulus"?
[ cf The Bankruptcy of GM ]
Would GM be any worse off than it currently is?

Would GM maybe learn not to litigate against it's own best interests, as it did with the Electric Car?

So the real question is understanding the differences between corporations that are alledged to actually make things, like the portion of GM, that makes cars, and The Financial Industry, of which, well, gosh, GM is also a part of, since it is it's own liquidity farm, given that has been selling cars more as a draw to it's financial sector.... that had been the cash cow of GM.....

Real corporations that produce real things, have the well understood path of Chapter 11. Why not allow them to make a bit of change and re-invention, the old fashion way.

But that way might lead to GM having to be a Real Corporation, and not a liquidity farm.... Where they grows them some liquidity, that is as liquid as the faith in it's financialization....

{ a little joke for folks who may remember all the way back to the Enron days, and the various myths about the financialization process... ah yes, and their great 'risk management systems'... But first things first. }
Tags: economics, war

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