GM to follow Chrysler, auto “loans” transform into grants. *Unions thrilled!
Under the category of “You could see this coming from a thousand miles away” it is reported that GM will indeed literally become GOVERNMENT Motors and will miraculously be forgiven most of its 15.4 BILLION “loan”. From Reuters
General Motors Corp’s plan for a bankruptcy filing involves a quick sale of the company’s healthy assets to a new company initially owned by the U.S. government…
In addition, the government would extend a credit line to the new company and forgive the bulk of the $15.4 billion in emergency loans that the U.S. has already provided to GM, the source said.
Gee, they are so credit worthy, no problem with the previous “loan”, let’s extend them MORE money. I’m sure they will pay it back this time.
Of course no taxpayer funded government takeover would be complete without handing over the company to the very people who drove it into the ground. For those who haven’t guessed by now that would be the thrilled Auto Union.
The government’s plans include giving stakes in the new company to GM’s union and bondholders, although the ownership structure of the company is still being negotiated, said the source who is familiar with the company’s plans.
(Again, bolding mine)
Apparently there are some bondholders that foolishly think that there is going to be a negotiation (as opposed too, meet the head of the UAW Mr. Gettelfinger, he will be working with you he will be laughing at you he will tell you to go to hell as he will have complete government sanctioned control over GM).
I suggest the bondholders see how things are going for the other debt holders at Chrysler for a hint of what happens next.
At some point I hope someone says “There is such a thing as rule of law”, the unions are owed nothing for their efforts to destroy manufacturing in America and nowhere in the constitution does it say “The government shall bail out any failed business with sufficient political connections”.
I know, silly hope, I fully expect everyone to rollover, hand the union and government a car company plus billions of taxpayer dollars and call it a day.