F. George McDuffee wrote:
Note that in the process of developing these plans over two
weeks, the projected "bridge loans" needed increased from 25
billion to 38 billion.

Now if this were most any other company, they
would default on their loans and pension plan,
go into receivership, be sold off for a fraction
of their current worth, and start producing product
with a labor rate of $40/hr instead of $75/hr.
Which, of course, would be the best thing for
the majority of the country.

Instead, the government, i.e. us, will continue
to flush money down the gopher hole without fixing
the problem.

If you are interested in what the car makers said, and not in
what the talking heads and "spin meisters" said they said, click
on

http://banking.senate.gov/public/_fi... ateFinal_.pdf
http://banking.senate.gov/public/_fi...onAppendix.pdf

http://banking.senate.gov/public/_fi...heGMPlan.pd f
http://banking.senate.gov/public/_fi...ssionFinal.pdf

http://banking.senate.gov/public/_fi...elby000000.pdf
http://banking.senate.gov/public/_fi...ablityPlan.pdf
http://banking.senate.gov/public/_fi...sofInquiry.pdf

IMNSHO the only company that appears to have their head where
sunshine can reach, based on their plan, is FoMoCo. Even here,
it appears that technical solutions of non-technical problems are
stressed, which are sure to fail. Increasing complexity does not
add value to the product, and increases the life cycle costs, if
not the initial purchase price. They also continue to toe-dance
around Diesels.

Note that the provision "Protect taxpayers by granting the most
senior status for any government loans provided, ensuring that
taxpayers get paid back first" means that the existing creditors
[including vendors] are being ripped off in that their chance of
recovery is diminished.

GM seems to be dreaming in that they assume their bond holders
will line up to exchange c. 32 billion in GM bonds [now yielding
50% per year based on current prices] for GM stock. [the old
debt for equity offer -- note that at current stock prices, 32
billion is ==about 11X the entire current GM market cap.==]
http://finance.yahoo.com/q?s=gm


Unka' George [George McDuffee]
-------------------------------------------
He that will not apply new remedies,
must expect new evils:
for Time is the greatest innovator: and
if Time, of course, alter things to the worse,
and wisdom and counsel shall not alter them to the better,
what shall be the end?

Francis Bacon (1561-1626), English philosopher, essayist, statesman.
Essays, "Of Innovations" (1597-1625).