Thursday, December 18, 2008

Bush Pushing for an "Orderly" Bankruptcy for GM

It seems that Bush might let GM go into some kind of targeted receivership or something instead of just writing them a check.

"Under normal circumstances, no question bankruptcy court is the best way to work through credit and debt and restructuring," he said during a speech and question-and-answer session at the American Enterprise Institute, a conservative Washington think tank. "These aren't normal circumstances. That's the problem."

The problem is whether people will still buy a car from GM if the government takes over and forces them to renegotiate their contracts with the UAW. They will be essentially buying a car from a government run auto company that is in receivership. I can see people still flying UAL when they were in bankruptcy since they only need the service that one time. Owning a car and getting it serviced is a whole different thing. Oh well, I took profits weeks ago so it is just a sideshow to me now.

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