Roger Altman says this is it for GM, unless Federal Government bails them out.
This is different than the banking system. GM should not be bailed out. They should enter bankruptcy in a prepackeged formula, and the Feds might consider debtor in possession financing. GM (and Ford) need to stiff the UAW and you and I should not have to pay for it.
Now, with a Democratic Administration and Congress, I am shouting into the wind. They will get their bailout. Otherwise, it will appear that the Feds bailed out Fat Cat Wall Streeters and not blue collar auto workers. Nice pitch. Not a shred of truth, by that is how it is going to be presented.
If the U.S. provides money to cover the healthcare and pension income of the UAW workers, they should do it for me, you, migrant farm workers, toll collectors, butchers, bakers, and those nasty candle stick makers, too.
Wall Street does not exist any more. We don't need GM or Ford either. Somebody else would be MUCH better at coming up with the battery technology absent all the legacy liability. Let's stop "pissing up the rope".
The U.S. Pension Benefit Gauruntee Corp. is going to fail. PERIOD. Will all Americans be required to work till the end of their days so that retired UAW and municpal workers can enjoy decades of carefree retirement? Nope, because Americans won't tolerate it. NAFC.
Mentatt (at) yahoo (d0t) com
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5 comments:
DOW headed to 4000 by february
Dear Anon @ 8:51am
IF you think so, go long SDS (double short the S&P 500) - you will make a fortune...
If you are above making money... Do it anyway, give your winnings to charity, and if you are wrong you will lose everything.
4000? By February? Bit of a stretch... Maybe 7000 to 7500.
But you never know...
We haven't even headed into 2009 at all. The unemployment hasn't even really started. I don't think a low, low Dow is out of the question, especially with all these very nervous baby boomers who have now seen their house value and portfolio value collapse so much -- they will panic some more and sell. With no good news on the horizon and the govt. making all the same mistakes they always make (Keynesianism is what it is called), his prediction isn't outside of reality.
Add in Obama's stated tax policy, and Russia and Saudi Arabias need to actually make money from oil along with the declining supply.
A DOW of 5000 by Feb isn't out of the question.
Never said it was out of the question.
My point was this:
If you REALLY believe your analysis, put all your money on RED. If it comes in RED, you will get paid big time Wall Street money. If you are wrong, you will lose everything.
If I was convinced of DOW 4000 I could make 9 figures. PLEASE - convince me. Not with BS.
Lay the analysis on me. I really want to be convinced.
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