Comments on: Why the government is keeping GM alive http://blogs.reuters.com/felix-salmon/2009/06/02/why-the-government-is-keeping-gm-alive/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: cbl http://blogs.reuters.com/felix-salmon/2009/06/02/why-the-government-is-keeping-gm-alive/comment-page-1/#comment-2348 Wed, 03 Jun 2009 17:39:44 +0000 http://blogs.reuters.com/felix-salmon/2009/06/02/why-the-government-is-keeping-gm-alive/#comment-2348 What about the national security angle? Wouldn’t the desire to have massive assembly line capacity outside of Ford be a consideration for the government in the off chance WWIII breaks out tomorrow?

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By: Argel http://blogs.reuters.com/felix-salmon/2009/06/02/why-the-government-is-keeping-gm-alive/comment-page-1/#comment-2317 Tue, 02 Jun 2009 23:28:17 +0000 http://blogs.reuters.com/felix-salmon/2009/06/02/why-the-government-is-keeping-gm-alive/#comment-2317 To Marc: Supplier bankrupticies doubtful? Several suppliers are already in bankruptcy!!

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By: Unsympathetic http://blogs.reuters.com/felix-salmon/2009/06/02/why-the-government-is-keeping-gm-alive/comment-page-1/#comment-2301 Tue, 02 Jun 2009 19:27:57 +0000 http://blogs.reuters.com/felix-salmon/2009/06/02/why-the-government-is-keeping-gm-alive/#comment-2301 Felix, the third tier 1 supplier declared bankruptcy today. Or, perhaps I should say, “declared its intention to lapse into delinquency.”

Just out of curiosity, how many suppliers have to go bankrupt with no bailout before we (you? Mish? Anyone?) takes the administration to task for simply throwing money at banks once again. Banks are the only ones making any money in this BK. Shocking!

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By: odograph http://blogs.reuters.com/felix-salmon/2009/06/02/why-the-government-is-keeping-gm-alive/comment-page-1/#comment-2294 Tue, 02 Jun 2009 18:09:27 +0000 http://blogs.reuters.com/felix-salmon/2009/06/02/why-the-government-is-keeping-gm-alive/#comment-2294 I don’t see a lot of light between Reich and Salmon’s positions. I think Salmon explained the mechanism more clearly, but the end-game looks pretty much alike.

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By: winstongator http://blogs.reuters.com/felix-salmon/2009/06/02/why-the-government-is-keeping-gm-alive/comment-page-1/#comment-2290 Tue, 02 Jun 2009 17:35:46 +0000 http://blogs.reuters.com/felix-salmon/2009/06/02/why-the-government-is-keeping-gm-alive/#comment-2290 If GM is voluntarily closing factories, how much are they selling those factories for? Anything?

How much would GM yield in a liquidation? There are lots of operations that if closed would have zero buyers. Would the foreign manufacturers buy up those plants because they anticipate increased production above their current capacity? Haven’t the big3 closed other factories in MI while the foreign manufacturers have built plants, mostly in the South?

Your conclusion rightly sums it up.

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By: lark http://blogs.reuters.com/felix-salmon/2009/06/02/why-the-government-is-keeping-gm-alive/comment-page-1/#comment-2288 Tue, 02 Jun 2009 17:21:23 +0000 http://blogs.reuters.com/felix-salmon/2009/06/02/why-the-government-is-keeping-gm-alive/#comment-2288 Reich’s lack of insight here was shocking. My respect for him went down a notch.

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By: Don the libertarian Democrat http://blogs.reuters.com/felix-salmon/2009/06/02/why-the-government-is-keeping-gm-alive/comment-page-1/#comment-2283 Tue, 02 Jun 2009 16:21:35 +0000 http://blogs.reuters.com/felix-salmon/2009/06/02/why-the-government-is-keeping-gm-alive/#comment-2283 “So the point of the $60 billion isn’t to buy GM, or to provide jobs to some subset of its workers. It’s to avoid the catastrophe that would be a GM liquidation”

I agree. But, initially at least, I thought that bailing out the automakers was a matter of optics, especially for the Bush Administration. It was beginning to look like only bankers, financiers, and Bush cronies, got bailed out. Hence, the help for homeowners and auto makers.

Now, I know all about Cerberus, but, frankly, even helping homeowners can be seen as bailing out banks and lenders. These bailouts had better optics. This also explains, in my book, the rather over the top criticism of creditors. It makes the bailout look like a defense of the little guy. Sort of.

Optics matter. It’s a bitter pill to see such posturing from my party, but I’m getting used to bitter pills.

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By: Marc http://blogs.reuters.com/felix-salmon/2009/06/02/why-the-government-is-keeping-gm-alive/comment-page-1/#comment-2282 Tue, 02 Jun 2009 16:19:09 +0000 http://blogs.reuters.com/felix-salmon/2009/06/02/why-the-government-is-keeping-gm-alive/#comment-2282 How many suppliers have only GM as a customer?

There would undoubtedly be supplier layoffs, bankruptcies – very doubtful.

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