forddaughter Posted May 27, 2009 Share Posted May 27, 2009 http://money.cnn.com/2009/05/26/news/compa...sion=2009052618 Quote Link to comment Share on other sites More sharing options...
snooter Posted May 27, 2009 Share Posted May 27, 2009 http://money.cnn.com/2009/05/26/news/compa...sion=2009052618 fully expected..i never expected anything else from the real owners of GM...whats next???????...bankruptcy???..liquidation????..i suspect we will soon see lenders refuse to lend to any union based company...outcome all depends on what washington does and how bad the bondholders get tared and feathered..otta be fun watching this Quote Link to comment Share on other sites More sharing options...
Pioneer Posted May 27, 2009 Share Posted May 27, 2009 i suspect we will soon see lenders refuse to lend to any union based company Your bigotry precedes you. Quote Link to comment Share on other sites More sharing options...
LSFan00 Posted May 27, 2009 Share Posted May 27, 2009 Lending (to large corporations) depends on capital, which in turn depends on bond markets. Bonds are in a whole lot of trouble. I'm not an economist, of course, but you don't have to be an economist to understand (a) bonds are sold in a market, (B) the pace of deficit spending means a huge increase in the supply of debt, and © the loss of capital in the meltdown means weak demand for securities. Unions have had on the whole merely an incremental(ly unhealthy) effect on the elections and consequences we are now facing. The yield has risen over 90 basis points since March when the US Federal Reserve first announced its controversial plan to buy Treasury bonds directly, a move designed to force down the borrowing costs and help stabilise the housing market. The yield-spike may be nearing the point where it threatens to short-circuit economic recovery. . . . The Obama administration needs to raise $2 trillion this year to cover the fiscal stimulus plan and the bank bail-outs. It has to fund $900bn by September. "The dynamic is just getting overwhelming," said RBC Capital Markets. The US Treasury is selling $40bn of two-year notes on Tuesday, $35bn of five-year bonds on Wednesday, and $25bn of seven-year debt on Thursday. While the US has not yet suffered the indignity of a failed auction – unlike Britain and Germany – traders are watching closely to see what share is being purchased by US government itself in pure "monetisation" of the deficit. The game, as they say, is just about up. Unionized businesses are generally a little less profitable, but there's not going to be a lot of profit, or lending, in the near future. Lenders care about returns, not labor unions. Quote Link to comment Share on other sites More sharing options...
snooter Posted May 27, 2009 Share Posted May 27, 2009 Your bigotry precedes you. move to zimbabway or someplace that embraces socialism..a bigot..lmao..thats funny..stayed tuned your about to see how socialism really works..sadly you may experience the brunt of it..you simply cannot take away from the bond holders..they own GM..gosh i just love the canned rabid responses to this...whats next..i'm unamerican for for thinking GM and especially chrysler need to be torn down and rebuilt Quote Link to comment Share on other sites More sharing options...
Pioneer Posted May 27, 2009 Share Posted May 27, 2009 i just love the canned rabid responses to this... You talk of canned responses, but you and LS are king of them. You blame the Unions for everything, even when it's clear they are not the cause of the problem. Quote Link to comment Share on other sites More sharing options...
old_fairmont_wagon Posted May 27, 2009 Share Posted May 27, 2009 Their behavior in the past was clearly a peice of the puzzle that got GM and Chrysler to where they are today. I don't think that you can successfully argue against that statement. No one, however, can lay ALL of the blame at the union's feet. Quote Link to comment Share on other sites More sharing options...
Pioneer Posted May 27, 2009 Share Posted May 27, 2009 No one, however, can lay ALL of the blame at the union's feet. Snooter and LSFan can. That's all they do. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted May 27, 2009 Share Posted May 27, 2009 (edited) Their behavior in the past was clearly a peice of the puzzle that got GM and Chrysler to where they are today. I don't think that you can successfully argue against that statement. No one, however, can lay ALL of the blame at the union's feet. In the last three years, the UAW has bent over backwards to make tough deals happen. I think it is fairer to judge Ford Motor and the Union on their recent cooperative behavior, both have achieved the most important thing - the survival of Ford and its products. I just wish people would get off the Union bashing thing, it's counter productive and not indicative of the spirit at Ford motor. Edited May 27, 2009 by jpd80 Quote Link to comment Share on other sites More sharing options...
Mark B. Morrow Posted May 27, 2009 Share Posted May 27, 2009 move to zimbabway or someplace that embraces socialism..a bigot..lmao..thats funny..stayed tuned your about to see how socialism really works..sadly you may experience the brunt of it..you simply cannot take away from the bond holders..they own GM..gosh i just love the canned rabid responses to this...whats next..i'm unamerican for for thinking GM and especially chrysler need to be torn down and rebuilt Actually it is the Shareholders who own a corporation. The Bondholders are creditors who only have dibs in a liquidation. In the case of GM and Chrysler they stand behind the U.S. Government. Their only hope is that GM and Chrysler continue as going concerns. That can't happen without the workers. The UAW VEBA is a separate entity from the general union and it has no interest in keeping its investment tied solely to GM or Chrysler. They will diversify at the earliest opportunity. Quote Link to comment Share on other sites More sharing options...
Ford Jellymoulds Posted May 27, 2009 Share Posted May 27, 2009 (edited) Gotta say l was pretty amazed at the costs involved associated with GM going through bankruptcy they mentioned it will cost over 1 billion $$$ to pay all the lawyers, consultants & other vultures. Edited May 27, 2009 by Ford Jellymoulds Quote Link to comment Share on other sites More sharing options...
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