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GM Bailouts Affect You

Discussion in 'U.S. Politics' started by asur, May 24, 2009.

  1. asur

    asur New Member

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    Many mutual funds, pension funds and 401Ks contain GM stock.

    If GM goes bankrupt and the Obama Task Force stiffs the private investors here, kiss that money above goodbye forever.

    IF GM stays in business the salaries, heath care and pensions of GM workers will be funded by US taxpayers, in effect. Approximately 50% of the US pays taxes.

    In the long run GM will make junk cars, as government is not good at making anything. Some say they already make junk cars. Go figure.

    The little guys lose here, but it's called CHANGE!


    Did you know the real unemployment rate is 19% now under Obama.
    How do you like that change?
     
  2. Larry pols

    Larry pols New Member

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    I'm writing my Undergraduate project on the Politics of the present World Recession and it's possible impacts to third world Countries.
    I hope you can kindly assist me with the Wealth of knowledge available to you.
    Hoping for your response.
    Larry Alfred
    larraloveb@yahoo.com

     
  3. top gun

    top gun New Member

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    I think we all agree with you that the BUSH RECESSION has devastate America and had to make our great new President work very fast & hard since he's been in office only 180 days.

    You obviously didn't hear the news today that even after their previous huge give backs the UAW made another slew of huge concessions & commitments today to help get GM back up on it's feet.

    GM will not be run by the government anymore than any other car company that wants to sell cars in the US... the standards will be across the board.

    And I must say it's pretty intellectually ignorant to say a company going out of business before the government's help will be worse off NOT GOING OUT OF BUSINESS with the governments help!:D

    GM will be leaner, meaner and ready to take on the challenge due to the space provided by President Obama and quite possibly a quick in/restructure and out of bankruptcy court.

    Thank God President Obama is working a plan
    that will save American car companies and have America out of this terrible BUSH RECESSION by the end of 2010.


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  4. pocketfullofshells

    pocketfullofshells Well-Known Member

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    gee more threads of mindless thoughts about GM with what appears to be no understanding of anything about it. That the goverment is not making cars, with no bail out those 401Ks would have been GM went under and the econ wend even down more ( not the improving one we see now)The just pure lack of knowlage about GM from someone who posts so much about it, is almost shocking. Then again what do I know, after all I am 2 posters not one right? Quick sick the mods on me lol
     
  5. PLC1

    PLC1 Moderator Staff Member

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    the only thing worse than GM going belly up before being handed a few billion in taxpayer money, is it going belly up after having been handed a few billion in taxpayer money.

    If it can be kept afloat, and pay back the bailout the way Christler did under Lee Iacocca, then fine.

    If GM is going to be Government Motors, then that's not so fine, but I really don't see that happening, do you? All the talk about "socialism" really is about statism. The government isn't going to try to run GM, is it? Please, tell me it isn't.
     
  6. top gun

    top gun New Member

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    Of course it's not.

    The government is a loan & a warranty guarantee pure & simple. Now the Federal government is raising CAFE standards for fuel economy and emissions but that's a phased in thing and it's for ALL cars sold in the US, domestic & import.

    I'll tell you exactly whats going to happen. GM will come out of this smaller but in a much better position to compete long term. They've got a lot of cool stuff like the Chevy Volt almost ready to hit and that's just the start.

    I'll tell you what their focus will be and I think it's a pretty good one. You've seen those tiny clown car looking things called "Smart cars". Well very few Americans are going to dig that much. Americans like decent size cars.

    That's what GM will now focus on. Not huge SUV's but really focus on getting their line up with some decent size cars that get truly great mileage. I'm talking several cars starting at say a Honda Civic or Nissan Altima size but also going up to the size of a Toyota Camry or Chevy Malibu that get 40-50 mpg on the highway. And the super hybrids like the Volt even much better then that.

    When you stop and think that the new VW Jetta Turbo clean diesel sold right here in America gets a whopping 58 mpg on the highway and that's not even a hybrid or electric it's not at all hard to see GM making these kinds of great strides too.

    That's where the money is to be made now. Building bigger & more comfortable cars that get mileage like only mostly little tiny things have before.


     
  7. PLC1

    PLC1 Moderator Staff Member

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    Are you buying GM stock while it's down?
     
  8. Dr.Who

    Dr.Who Well-Known Member

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    Getting past the blatant partisanship of calling a recession that no president has the ability to avoid a "Bush recession" we need to be aware that the Congressional Budget Office has stated in other words that the cure is worse than the disease; the Obama plan is going to be more harmful than the recession ever was going to be.
     
  9. Dr.Who

    Dr.Who Well-Known Member

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    The justification for the gov controlling decisions made by private companies was that it was taxpayer money. so now they have given up all pretense of having a reason to be socialists and they will just dictate what decisions a private comany makes. WAKE UP EVERYBODY.

    But since the peson you were responding to did not say GM would be worse off what you say makes no sense. The person you are responding to said that the little guy, you and I, would be worse off. Was that an intentional straw man or were you being intellectually ignorant?

    GM is doomed to live a zombie death. Surviving as inefficiently as every other government run program.

    All recessions end on average in two years. So this one will be onger than average as a result. And again the CBO said that the cure is worse than the disease.
     
  10. top gun

    top gun New Member

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    That's a great question.

    I've been saying all along (with the bailout plan) when GM stock took it's big nose dive, yes. I just can see no way General Motors is going out of business. And they can only go way up from where they are now.

    If GM does in fact go into bankruptcy as well, being very frugal I might wait to see all the details that come out of that now and then buy more. That's not to say GM stock isn't going to jump way up from today's prices regardless... but I might have a better idea how quick the rebound will be so I'd know how aggressive to invest in GM stock.

    So the short answer is yes I've bought some... now waiting to see bankruptcy deal to hopefully buy more while it's still depressed.
     
  11. PLC1

    PLC1 Moderator Staff Member

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    I may buy some, too, but not more than I can afford to lose.
     
  12. top gun

    top gun New Member

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    The thing that will freeze most everybody is that as soon as they go into an official bankruptcy GM stock will be seemingly worthless.

    But as long as the company comes out and stays in the market that "worthless" will be something "worthy" again. And you'll never buy it any cheaper than where it is or will soon to be. It's the old "buy low/sell high" thing.

    I just think it's not even within the realm of any possibility that a car company the size of GM would ever just pack up it's tent, sell everything off, and close it's doors for good.

    But you're smart to always be cautious and never bet more than you could afford to loose... in any financial deal.
     
  13. top gun

    top gun New Member

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    This is a bailout loan. We did it before for Chrysler and we got every dime back PLUS interest. The government didn't hold on to Chrysler when they were able to pay back and remove themselves. The whole "socialist" thing is a Republicant buzz word and frankly is very tedious.

    Neither... it was the truth. Everybody is worse off if GM closes it's doors forever then if it's bailed out... gets the concessions it needs (got them now)... and comes back a strong competitive American manufacturer and employer.

    You guys are the kings of both fearmongering & doom & gloom.:D

    GM is not going to have any "zombie death" that's ridiculous. And they aren't going to be a government run company either. The government is simply an investor while the company reorganizes.


    Tell that to the people that lived during the Great Depression! George Bush brought to our doorsteps the worst economic downturn... not kinda bad... not a mild to moderate recession... THE WORST ECONOMIC DOWNTURN since the Great Depression.

    The BUSH RECESSION... love it if you like... but we've been too busy helping Americans to join in on your defeatist doom & gloom festival.;)


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  14. Dr.Who

    Dr.Who Well-Known Member

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    You said the government was going to start regulating companies that it did not give money to. Lest anyone forget that regulation has already included telling the companies who they can hire and who they can give bonuses to.

    You specifically said that it was the company itself that would be better off.

    And the gov has no constitional authority to invest in private companies. I can't lay a finger on an article of the const that gives it hat power.



    That is bull. This downturn might not even be a recession. And it has not been worse than any of the last dozen or so that we have had since the great depression. But you are very welcome to go find a source that says it is already worse than any since the great depression. What you will find will be reports all coming from the world bank saying it could be worse. A prediction that never came to pass. Well not yet anyway.
     
  15. top gun

    top gun New Member

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    I said that the new federal CAFE (fuel efficiency standards) and pollution standards will be across the board for any car sold in the United States domestic or import.

    IT WILL!!! Everybody will be better off compared to GM liquidating and going out of business.

    How about... to promote the general welfare?:) The government has done things like this many, many times. From the Great Depression to the more recent first Chrysler loan bailout 20 years ago. There's tons of precedent here my friend.

    Top Economists Agree Worst Financial Crisis Since Great Depression

    Feb 15, 2009
    From Business Wire:

    Three Top Economists Agree 2009 Worst Financial Crisis Since Great Depression; Risks Increase if Right Steps are Not Taken

    Three of the country’s most respected economists warned of a deepening economic crisis if the banking system is not quickly fixed in a wide-ranging conversation last night with Cambridge Energy Research Associates (CERA) Chairman Daniel Yergin and an audience of nearly 1,000 people who filled the Westin Galleria ballroom at CERAWeek 2009.


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