Blast from the past....


The Worst Is Upon Us

I might be jumping the gun by a few days, but GM is going to be reorganized under a chapter 11 bankruptcy filing. Ironic as it may sound, whats good for GM is good for America...and maybe many many Americans will file bankruptcy soon as well. For GM & those unlucky Americans, the failure is a cathartic happening & will allow for a repair & recovery withoit the burden of past financial misteps. GM's viability plan, submitted to the Congress & Treasury (Mom & Dad) today essentially explained that the company needed an additional $16billion in order to remain viable. That would bring the government bailout to $30billion & no viability plan for what happens when that money runs out. I guess by viable they meant that they could keep losing billions of dollars a month making & trying to sell cars & they might need billions more if cars don't sell at a much faster pace. Being that the recession will prevent any significant pickup in auto sales, GM will indeed file for bankruptcy protection with DIP financing provided by the US government (taxpayers). This may very well mark a turning point, not sure which way we will turn, but if nothing else it will be a psychological event that will once again highlight the risks of investing.