"Eisboch" wrote in message
...

"Canuck57" wrote in message
...

"Tom Francis - SWSports" wrote in
message ...

I still say that this is a great opportunity for some capital
investment firm to step in and build a new car company from scratch
designed to compete with Honda/Toyota, etc.

I'd be willing to bet that it could be done, start to manufacturing
and distribution, in less than five years.

Chapter 11 would allow that to proceed. I wouldn't even doubt some
billionaires' private equity cash is sitting and waiting and watching.
But they know, to get the meaningful change needed to make GM viable,
means they need chapter 11.

There is also a mater of equity here. GM's market cap is what, $2.5
billion?

GM is asking for $25 billion?

WTF. In my books that makes their debt to equity obscenly stupid. No
wonder that can't borrow a dime.


One of the financial experts interviewed on CNN commented on this. He
said that even if GM received the full requested government bailout ...
*plus* an additional 50-75 billion that he figured will be necessary in
the future, GM will still be an insolvent, bankrupt company.

It makes absolutely no sense to pour money into it without stepping back
and completely reorganizing it's business base. It will be painful for
sure. Jobs will be lost. Benefits will be cut back. Dealerships will
close. But reality *has* to be faced and the sooner it is done, the
better chance it has of surviving.
IMO, anyone who thinks that simply dumping billions of dollars into a
company like GM is going to benefit anyone in the long run has lost touch
with reality.

Eisboch

Please, I beg. Write your senator and congressman to tell them to force GM
chapter 11 ASAP. They are screwing with Canadian politics in a bad way.
Fortunately the junta failed, but they plan on trying again.