A BK at GM will cost the Gov. (us) $40 billion. GM is part of the country, its veins run through us.
“The banks don’t have enough money, or for that matter the gumption, to provide the billions in debtor in possession (DIP) financing needed for a chapter eleven bankruptcy. Without that DIP financing GM would have to go into a Chapter 7 liquidation which could trigger other bankruptcies in the auto industry, cause more jobs to be lost, and in general create a disastrous situation for an economy already in a recession. The bottom line: If Washington were to throw GM into bankruptcy right now, it would be running the risk of blowing an even bigger hole in the economy.”
Obama’s bailout will cost us $1 trillion to save or create 3 million jobs. $30-$40 billion to the auto makers will do the same thing.
