posted
when i was in 10th grade? i wrestled 138, our heavy weight (235) who was only a year older than me could throw me on top of a 7-11 easily.... we called him mcGilla, but his real name McDaniels. We always expectd him to end up as a pro guard or tackle but i lost track of him nad he never even showed up in college ball that i heard. his thighs were almost as big as my waist. i don't think he ever learned his times tables he was a total animal.
-------------------- Don't envy the happiness of those who live in a fool's paradise. Posts: 36378 | From: USA | Registered: Sep 2003
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posted
Obama Said to Plan for Chrysler Bankruptcy, Alliance (Update1) Share | Email | Print | A A A
By Mike Ramsey and Christopher Scinta
April 29 (Bloomberg) -- President Barack Obama plans to announce tomorrow that Chrysler LLC will be placed into Chapter 11 bankruptcy, leading to an alliance with Italian automaker Fiat SpA, people involved in the matter said.
Administration officials are still resolving outstanding issues, and the plan is not finished yet, said one of the people, who declined to be named. Any bankruptcy filing could come as soon as tomorrow, people familiar with the matter said.
Chrysler’s best assets would be sold to a new entity that would have an ownership structure similar to that envisioned in an out-of-court deal between the Auburn Hills, Michigan-base automaker and Turin, Italy-based Fiat, the people said.
The Italian company would become a 20 percent owner of Chrysler, and a union retiree health-care trust fund would own 55 percent, with the rest of the company staying in the government’s hands initially, people familiar with the matter said.
Chrysler has made progress in out-of-court restructuring, including reaching labor deals with the United Auto Workers union and Canadian Auto Workers on new contracts. Chrysler Chief Executive Officer Bob Nardelli said today in a memo to employees that the company is waiting to hear whether its 46 lenders will agree to take $2 billion in cash to wipe out $6.9 billion in secured debt.
Calls and e-mails to Chrysler spokeswomen, Lori McTavish and Shawn Morgan, seeking comment were not immediately returned.
To contact the reporter on this story: Michael Ramsey at mramsey6*bloomberg.net
Last Updated: April 29, 2009 16:04 EDT
-------------------- Wise men learn more from fools than fools from the wise. Posts: 3827 | From: beautiful California | Registered: Sep 2008
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quote:Originally posted by T e x: well, not sales as you intend, perhaps.
But I still have to "sell the job."
That is, if I show up to fix your house, you're not gonna give me the job just cuz I show up.
oh ok.. then definetly get the book... you'll see selling in a totally different light and not a burden... imo your sales per say will increase if you read this book and use his methods... the book and his story/methods are fascinating... they are also logical and you will say why didn't i think of that.. etc..
-------------------- Let the world change you... And you can change the world.
Ernesto "Che" Guevara de la Serna Posts: 4669 | Registered: Mar 2004
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quote:Originally posted by glassman: You forget I'm a salesman
actually i mentioned it specifically cuz i know and remebered you are one.
i'm a terrible sales person, so i have to work even harder on my peices to overcome my poor abilities as assaleperson...
I would HIGHLY recommend the book below even if you hate "selling". It's a classic in the selling field and you can read what the customer reviews say about it. Trust me, you won't regret reading this book.It will increase your sales without a doubt:
How I Raised Myself from Failure to Success in Selling by Frank Bettger
quote:Originally posted by Lockman: Ah Chrysler....another government owned company. This one isn't even a publicly held company, I believe they call this economic fascism.
I consider Chrysler a publicly held company indirectly...
-------------------- Let the world change you... And you can change the world.
Ernesto "Che" Guevara de la Serna Posts: 4669 | Registered: Mar 2004
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quote:Originally posted by Lockman: I believe they call this economic fascism.
how so?
When the government "invests" in private or public companies and overrules the board of directors and CEO it's a form of facism.
When the government injects it's will on what industries will be sucessful and which ones won't it's a form of facism.
Our President has fired a CEO and dismissed members of a board of directors.
When is the last time you saw a companies B/K ordered by the President? Yesterday Chrysler.
lol, keep up...
look up Obama's response to Deb Price earlier tonight...
Obama seems to have a habit of saying one thing and doing another. I've heard him say before how much he likes the free enterprise system and then he injects government into it anyway. I believe our free market system will prevale even with Obamas interventions I just wish he'd let the systems in place work.
-------------------- Let's Go METS!!! Posts: 3317 | From: CT | Registered: Dec 2006
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the one where lenders can't renegotiate a bad loan with a homeowner...cuz the service company makes *more* money handling the foreclosure? and downstream investors can sue?
and bankruptcy judges can modify loans on luxury items--but not primary residences?
quote:Originally posted by Lockman: I believe our free market system will prevale even with Obamas interventions I just wish he'd let the systems in place work.
systems in place work? The system we had is what got us in this mess... The GOP's attitude of laizze faire towards business with no regulations, not even moderate ones corrupted the system and brought us down. It happened during Hoover's day, Reagan's and Bush Sr/Jr's times in office. Is that a coincidence? I think not. And it's always the Dem Prez who gets elected afterwards who gets holding the mess to fix.
There can be a "free" market but just not as free because businesses, people etc. abuse the privelege of a totally free market. So some regulations should be in place to prevent disasters like the one we are in now.
-------------------- Let the world change you... And you can change the world.
Ernesto "Che" Guevara de la Serna Posts: 4669 | Registered: Mar 2004
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Chrysler files for Chapter 11 bankruptcy By STEPHEN MANNING and TOM KRISHER, Associated Press Writers Stephen Manning And Tom Krisher, Associated Press Writers 7 mins ago
WASHINGTON – Chrysler LLC filed for bankruptcy protection Thursday and will form an alliance with the Italian carmaker Fiat Group SpA in an effort to revive the nation's ailing third-largest automaker.
The Obama administration said it had long hoped to stave off bankruptcy for the nation's third largest automaker, but it became clear that a holdout group of creditors wouldn't budge on proposals to reduce Chrysler's $6.9 billion in secured debt. Clearing those debts was a needed step for Chrysler to restructure by a government-imposed Thursday deadline.
"No one should be confused about what a bankruptcy process means," President Barack Obama said in a midday announcement. "This is not a sign of weakness but rather one more step on a clearly chartered path to Chrysler's revival."
Chrysler filed for Chapter 11 bankruptcy protection in New York on Thursday with the hopes of emerging in as little as 60 days under the new partnership with Fiat. The government, which has already poured $4 billion in loans into Chrysler, would provide up to $8 billion more to carry the company through bankruptcy, said senior administration officials speaking on condition of anonymity. The government will also help appoint a new board of directors.
The deals give Chrysler "a new lease on life," Obama said.
"This is not a sign of weakness," he said. "I have every confidence that Chrysler will emerge from this process stronger and more competitive."
Under bankruptcy, Chrysler would still sell cars and the government would back its auto warranties. But Chrysler said Thursday that it will idle its plants during the legal proceedings. The company's chief executive, Robert Nardelli, said he will leave when the bankruptcy is complete.
When that occurs, the Auburn Hills, Mich.-based automaker would end up owned by the United Auto Workers union, the U.S. government and Fiat. The Canadian and Ontario governments, which are also contributing financing, would have small stakes.
But Fiat, which the Obama administration hopes can jump start Chrysler with its fuel-efficient and lower-emission technology, could end up the majority stakeholder. Fiat would initially get 20 percent, a share that could rise to 35 percent if certain benchmarks are met. Fiat said Thursday it could get an additional 16 percent by 2016 if Chrysler's U.S. government loans are fully repaid.
Obama said Chrysler Financial, the arm of the company that makes loans to buyers and to dealers to finance their inventories, will be merged into GMAC Financial Services, once General Motors Corp.'s finance arm. The new GMAC will get government support. Chrysler's base of dealers would also be pared down.
The Treasury Department's auto task force has been racing in the past week to clear the major hurdles that prevented Chrysler from coming up with a viable plan to survive the economic crisis ravaging nation's automakers.
Along with the Fiat deal, the UAW ratified a cost-cutting pact Wednesday night.
Treasury reached a deal earlier this week with four banks that hold the majority of Chrysler's debt in return for $2 billion in cash.
But the administration said about 40 hedge funds that hold roughly 30 percent of that debt also needed to sign on for the deal to go through. Those creditors said the proposal was unfair and they were holding out for a better deal.
"I don't stand with them," Obama said.
A person briefed on Wednesday night's events said the Treasury Department and the four banks tried to persuade the hedge funds to take a sweetened deal of $2.25 billion in cash. But in the end, this person said most thought they could recover more if Chrysler went into bankruptcy and some of its assets were sold to satisfy creditors. This person asked not to be identified because details of the negotiations have not been made public.
On Thursday, a group of funds identifying themselves as 20 of Chrysler's "non-TARP lenders" released a statement saying they had been sidelined during negotiations between lenders and the government. The group, which said it holds $1 billion in Chrysler debt, complained that the four banks were "obviously conflicted" because they had accepted money from the government's Troubled Asset Relief Program while they had not gotten TARP money.
The group said its offer to the Treasury Department to reduce its claim to 40 percent was "flatly rejected or ignored."
Fiat is getting its stake in Chrysler for giving the company access to its fuel-efficient technology, a move toward cleaner cars that the Obama administration thinks is critical to Chrysler's future survival. The company has committed to building Fiat cars in Chrysler factories, to be sold as Chryslers.
Obama's auto task force in March rejected Chrysler's restructuring plan and gave it 30 days to make another effort, including a tie-up with Fiat.
Chrysler's bankruptcy filing said it owes more than $10 million a piece to 20 unsecured creditors, many of whom are vendors and suppliers.
At the top of that list were: Ohio Module Manufacturing Co. ($70.3 million), BBDO Detroit Inc. ($58.1 million), Johnson Controls Inc. ($50.3 million), Continental Automotive ($47 million), Cummins Engine Co. ($43.9 million) and Germany-based Germersheim Spare Parts ($36.2 million).
___
AP Auto Writer Tom Krisher reported from Detroit. AP Business Writer Vinnee Tong in New York contributed to this report.
-------------------- Wise men learn more from fools than fools from the wise. Posts: 3827 | From: beautiful California | Registered: Sep 2008
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quote:Originally posted by Lockman: I believe our free market system will prevale even with Obamas interventions I just wish he'd let the systems in place work.
systems in place work? The system we had is what got us in this mess... The GOP's attitude of laizze faire towards business with no regulations, not even moderate ones corrupted the system and brought us down. It happened during Hoover's day, Reagan's and Bush Sr/Jr's times in office. Is that a coincidence? I think not. And it's always the Dem Prez who gets elected afterwards who gets holding the mess to fix.
There can be a "free" market but just not as free because businesses, people etc. abuse the privelege of a totally free market. So some regulations should be in place to prevent disasters like the one we are in now.
I agree people in the know where turning a blind eye to the abuses. What I was refering to was the government over ruled all the basic systems for dealing with failing businesses. We dumped billions into failed companies and now their going B/K anyway. Why didn't we let the systems in place work and we could have saved ourselves a lot of money.
-------------------- Let's Go METS!!! Posts: 3317 | From: CT | Registered: Dec 2006
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quote:Originally posted by Lockman: I agree people in the know where turning a blind eye to the abuses. What I was refering to was the government over ruled all the basic systems for dealing with failing businesses. We dumped billions into failed companies and now their going B/K anyway. Why didn't we let the systems in place work and we could have saved ourselves a lot of money.
Out of the bailed out ones only Chrysler is BK as far as i know... GM might might pull out of it though it's highly unlikely...
-------------------- Let the world change you... And you can change the world.
Ernesto "Che" Guevara de la Serna Posts: 4669 | Registered: Mar 2004
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posted
Glad we threw billions of tax dollars at automakers now Chrysler is doing bankruptcy. Obama admin is just spending as much money as possible and claiming different stories for when they sound convenient. im not buying this crap.
How can anyone prove that the stimulus saved us from bread lines?
We spent money we didnt have on a company that couldnt be saved!!!!!
-------------------- It isn't so much that liberals are ignorant. It's just that they know so many things that aren't so. Posts: 6949 | Registered: Apr 2004
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quote:Originally posted by CashCowMoo: Glad we threw billions of tax dollars at automakers now Chrysler is doing bankruptcy. Obama admin is just spending as much money as possible and claiming different stories for when they sound convenient. im not buying this crap.
How can anyone prove that the stimulus saved us from bread lines?
We spent money we didnt have on a company that couldnt be saved!!!!!
And when you look at the proposed budgets for the next two years, this round of spending is just peanuts. Wait until the health care sherade starts. Projected 650billion just to get started, multiply x5 to get the real figure. Government never comes close to budget figures and count in inflation when we can't borrow anymore from the Chinese. The banking system is far from corrected and we'll probably see some B/K's there also. All these clown's that made billions trading risky products are the only ones being bailed out. Let them lose and then the government can step in and control the downturn. What we've done now is shoot our load and when the real bomb hits where screwed.
-------------------- Let's Go METS!!! Posts: 3317 | From: CT | Registered: Dec 2006
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quote:Originally posted by CashCowMoo: Glad we threw billions of tax dollars at automakers now Chrysler is doing bankruptcy. Obama admin is just spending as much money as possible and claiming different stories for when they sound convenient. im not buying this crap.
How can anyone prove that the stimulus saved us from bread lines?
We spent money we didnt have on a company that couldnt be saved!!!!!
watch th ebankruptcy, you are going to see some people come out of that crying bad, and i bet its the people at the hedgies that forced the BK.
alotof opeople gave concessions, but the hedge funds didn't. the Judge will now decide and i bet the judge is ticked off that he/she even has to hear the case.
as for the bread lines? i already covered that you know what a death spiral is in stocks? we would have been in one with all the unemployent hitting all at once.
why are you so sure we wouldn't have had them?
do you know how much money the FDIC is insuring?
the FDIC is backed by the taxpayers. it astronomical and the bankers would have been forced to shut down and the taxpayers were still on the hook- that's the just the way it is.
it really is frustrating to explain this over and over again. we have been robbed. the govt is the LENDER of last resort. the bailouts are LOANS... nobody else is lending
those hedgies that forced this bankruptcy at chrylser better hope they are squeeeeky clean cuz the Feds are coming to go over thier books top to bottom...
what makes you so sure that Chrysler won't pay back the govt? i bet they do before the hedgies get their money...
-------------------- Don't envy the happiness of those who live in a fool's paradise. Posts: 36378 | From: USA | Registered: Sep 2003
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posted
"those hedgies that forced this bankruptcy at chrylser better hope they are squeeeeky clean cuz the Feds are coming to go over thier books top to bottom..."
Yeah, because we know how well that works. Take the SEC for example.
-------------------- It isn't so much that liberals are ignorant. It's just that they know so many things that aren't so. Posts: 6949 | Registered: Apr 2004
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posted
this ain't the SEC anymore. this is bankruptcy court.
Chrysler COULD have avoided BK. a few hedge funds refused to renegaotiate and the unions DID renegotiate as well as several other concenerd parties.
watch how it comes out.
i'm taking a risk and PREDICTING the hedgies will be sorry they forced the BK...
the FBI is not the SEC, i've been asking for years for the SEC to be done away with entirely OR folded into the the Department of Justice in which the FBI is the main power.
the govt isn't ALL politicians cash there's alotof good people in the govt too. they just need to be allowed to go do what they do. the Secret service does one hellofajob on credit card fraud you'd be amazed how many people try it and get caught. alot are still successful for a little while.
-------------------- Don't envy the happiness of those who live in a fool's paradise. Posts: 36378 | From: USA | Registered: Sep 2003
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quote:business SEC chief: Valuable tips fell through cracks
By Miles Moffeit The Denver Post Posted: 04/28/2009 12:30:00 AM MDT Updated: 04/28/2009 12:34:11 AM MDT
The Securities and Exchange Commission has been unable to keep up with more than a million investigative tips flowing into its offices in recent years because of shoddy controls, Chairwoman Mary Schapiro revealed Monday during a Denver conference of the country's business-news media.
Tips ranging from Ponzi-scheme leads to shareholder complaints on executive pay reach the sprawling agency through more than 40 channels and are logged on a maze of computer systems, she said.
The result: a mishmash of data that eludes proper monitoring.
"Last year, we had 750,000 tips, and we'll never be able to follow up on all of them," Schapiro told a luncheon at the Society of American Business Editors and Writers conference, which drew more than 200 attendees.
The leaky system ranks among her top priorities for reform, she said, and already has led to the hiring of a federal contractor — the Center for Enterprise Modernization — to shore up internal procedures to manage information that can lead to major investigations and enforcement actions.
The reputation of the SEC, the country's top watchdog regulating U.S. financial markets, has suffered during the last year as Congress and the public have blamed it for failing to investigate prominent investment banks, rein in reckless lending and spot damaging scams.
Most notably, the SEC failed to investigate Ponzi-scheme swindler Bernard Madoff until late last year, despite years of warnings by tipsters. He cheated investors out of an estimated $50 billion.
In her speech Monday, Schapiro sought to assure business journalists that she is focused on revitalizing the agency and catching future Madoffs.
"In real ways, the SEC has not addressed the most pressing issues . . . that should epitomize a world-class regulator," she said.
Schapiro, who previously served as chairwoman of the Commodity Futures Trading Commission, said she will pursue stronger controls over investment advisers with custody of clients' funds and securities. New standards would require surprise exams by certified public accountants and third-party compliance audits.
Among her first steps as SEC chief was to knock down barriers to swift enforcement. She nixed a program championed by the Bush administration that required commission approval before pursuing certain civil penalties, a process that some critics believe prevented aggressive fraud crackdowns on companies and accounting firms in recent years.
In response to questions seeking examples of how she plans to improve investigations and enforcement, Schapiro stressed her effort to reorganize from scratch the agency's methods for gathering tips.
In her first weeks, she directed her staff to run down where investigative tips were coming from. What she found was "not a great picture."
The finding: There's "no ability" to mine data to see whether one complaint is related to another complaint.
Schapiro said she's adamant about integrating the information to connect the dots on possible investigations to pursue.
"My goal is to increase the probability that we don't miss the next Bernie Madoff," she said.
SABEW awardsThe group announces winners of its "Best in Business" contest.
Miles Moffeit: 303-954-1415 or mmoffeit*denverpost.com
The single, largest item that I'm aware of that "falls through cracks" in bankruptcy court is the inability of judges to modify terms on a primary residence. In other words, not flippers, not speculators. But some smashed bazterd who needs to save the family home.
Yet, for the well-to-do, the same judge *can* modify loan terms for all kinds of superfluous, bullcrappedy items. It's only the main residence that gets special treatment, cuz of the lending lobby.
posted
yes judges cater to the lawyers they play poker with or golf with..
dropping a couple grand in a poker game with the judge is a business expense to some lawyers...
as to the SEC?
they have no teeth anyway. they are CIVIL law enforcement. they do not throw people in jail.
and?
many tips are designed to manipulate the makret and are dropped by people with skin in the game...
does that make 'em bad tips? no, but the SEC can't follow all of 'em.
make the penalties jail time.
this goes right back to my other pint about why jails are full of peole of color. they get prosecuted for stealing or dealing on a small scale, but the big fish are still swimming in the shark tank.
-------------------- Don't envy the happiness of those who live in a fool's paradise. Posts: 36378 | From: USA | Registered: Sep 2003
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posted
Chrysler is in court today for bankruptcy hearing 59 mins ago
NEW YORK – Attorneys packed a downtown Manhattan courtroom Friday morning for Chrysler's first hearing that may signal whether a quick, "surgical" bankruptcy will be possible for the automaker.
The nation's third-largest automaker filed for bankruptcy protection Thursday with an ambitious plan to emerge in as little as 30 days as a leaner company.
In the early morning hours before the hearing began, attorneys lined up outside the bankruptcy court for the Southern District of New York under overcast skies with coffee and rain gear in tow of hopes of securing a spot.
The large, windowless courtroom filed up quickly and two overflow rooms with video and audio feeds were opened up to accommodate the crowds.
Bankruptcy Court Judge Arthur Gonzalez convened the hearing shortly after 10 a.m. and was to hear the case's first motions Friday. On the agenda were typical motions aimed at allowing the company to continue paying workers and basic utility costs as it restructures.
Eventually, Gonzalez will have to reach a decision on creditors that hold $6.9 billion of the Chrysler's debt. Banks holding 70 percent of the debt agreed this week to a deal. But some hedge funds balked, saying it was unfair.
-------------------- Wise men learn more from fools than fools from the wise. Posts: 3827 | From: beautiful California | Registered: Sep 2008
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posted
Fiat eyes new company with GM Europe, Chrysler- AP Fiat Group SpA confirmed Sunday it was in talks to acquire General Motors Corp.'s European operations with the aim of possibly creating a new company that also would include its newly acquired Chrysler automaker.
-------------------- Wise men learn more from fools than fools from the wise. Posts: 3827 | From: beautiful California | Registered: Sep 2008
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-------------------- Wise men learn more from fools than fools from the wise. Posts: 3827 | From: beautiful California | Registered: Sep 2008
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The latest "news" is, Chrysler to get three new lines installed "soon". Fiat to assemble in North America??????
The only way "soon" will happen is to move existing lines and that's not cheap. It's only worth it if your getting big tax incentives.
No one is saying what the lines will build. So far they are just checking manpower availability, which is crazy because they know most of us are sitting at home. Waiting.
Posts: 105 | From: Toronto | Registered: Nov 2005
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It is unfortunate Cerberus will not feel the pain that Chrysler will. Cerberus will gain from the bailout by not having to show a loss. Very sad to see the very very "Rich" giving the finger to everyone else.
That's right. Not to save the jobs of Chrysler employees or America's disappearing manufacturing base, mind you, but to prevent "one of the world's richest and most secretive private investment companies" from having to take a relatively modest financial hit and use some of its own capital to prop up the smallest of the major automakers.
Of course, Cerberus is sparing no expense to spare their investors any exposure. Together with Chrysler, it has spent $7 million to hire such high-rent lobbyists as Dan Quayle (who runs one of Cerberus' international units), former Sen. John Breaux (D-La.) and former Bush legislative liaison David Hobbs. Their goal: $7 billion from the auto industry bailout package Congress is working on now and another $8.5 billion in loans from the Energy Department that have already been authorized.
Even after bushy is gone, you can't get rid of "him".
Posts: 105 | From: Toronto | Registered: Nov 2005
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posted
most americans don't know what it is like to live in a battle zone 3 million more unemployed might give them the chance to find out.
-------------------- Wise men learn more from fools than fools from the wise. Posts: 3827 | From: beautiful California | Registered: Sep 2008
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posted
i have to laugh when people casually say that "its' wrong" to "bail out" the nations infrastructure.
what's wrong was to allow Wall St to do what they did.
what's wrong is that big corporations walk all over everybody.
i dunno how people that do the work that allowed all of this to happen live with themselves.
if they were exposed to the public? there would be a run on tar and feathers..
i heard yesterday that Toyota ( the new largest car maker in the world) will post a 5 billion dollar LOSS this year. that's right GM isn't the only car maker in trouble.
the Japaneses will not allow Toyota to go under.
what was it they told Daddy Bush?
Its the Economy STUPID!
well, they were right.
-------------------- Don't envy the happiness of those who live in a fool's paradise. Posts: 36378 | From: USA | Registered: Sep 2003
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quote:Originally posted by glassman: i have to laugh when people casually say that "its' wrong" to "bail out" the nations infrastructure.
what's wrong was to allow Wall St to do what they did.
what's wrong is that big corporations walk all over everybody.
i dunno how people that do the work that allowed all of this to happen live with themselves.
if they were exposed to the public? there would be a run on tar and feathers..
i heard yesterday that Toyota ( the new largest car maker in the world) will post a 5 billion dollar LOSS this year. that's right GM isn't the only car maker in trouble.
the Japaneses will not allow Toyota to go under.
what was it they told Daddy Bush?
Its the Economy STUPID!
well, they were right.
-------------------------------------------------------------------------------- Carl Fox: "I came into Egypt a Pharoah who did not know." Gordon Gekko: I beg your pardon, is that a proverb.
Carl Fox: No, a prophecy. The rich been doing it to the poor since the beginning of time. The only difference between the Pyramids and the Empire State Building is the Egyptians didn't allow unions. I know what this guy is all about, greed. He don't give a damn about Bluestar or the unions. He's in and out for the buck and he don't take prisoners
Carl Fox: I don't go to bed with no whore, and I don't wake up with no whore. That's how I live with myself. I don't know how you do it.
-------------------- Let the world change you... And you can change the world.
Ernesto "Che" Guevara de la Serna Posts: 4669 | Registered: Mar 2004
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quote:Originally posted by Lockman: Allowing companies to reorganize in B/K is not doing nothing. We have a system in place to deal with companies in trouble lets use it.
yeah and let's let people lose their jobs for no reason other than some hedge fund want to make 125% on their investemnt instead of 100%.
that's called greed and greed kills.
that was the reason they put Chrysler into BK.
you may have a job, or you may not need one, but if you own any stock? you NEED people, all people to have jobs and money to spend so that your investments will not go broke.
this ain't complicated and quite frankly? i think the people yelling the loudest are the criminals that pulled this crap off.
going along with them is foolishness.
-------------------- Don't envy the happiness of those who live in a fool's paradise. Posts: 36378 | From: USA | Registered: Sep 2003
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posted
The Associated Press May 7, 2009, 4:35PM ET text size: TT GM draws closer to bankruptcy in first quarter By TOM KRISHER and KIMBERLY S. JOHNSON
MORE FROM BUSINESSWEEK China's Geely Eyes GM's Saab, Ford's Volvo - BusinessWeek GM: The Vultures Circle - BusinessWeek Can GM Keep GMC? - BusinessWeek Fiat Seeks Majority Stake in Opel - BusinessWeek Porsche Fails to Swallow VW - BusinessWe
General Motors drew closer to bankruptcy Thursday, acknowledging that its revenue fell by nearly half as car buyers worldwide steered away from showrooms for fear that the auto giant would not be around to honor its warranties.
The company lost $6 billion in the first three months of the year. The results were bad enough to bring a warning from Chief Financial Officer Ray Young, who acknowledged the difficulty of climbing out of a steep decline even if the company cuts costs.
"Once you start losing revenue, you get yourself into a vicious circle in which you cannot recover," he told reporters on a conference call.
GM is living on $15.4 billion in federal loans and faces a June 1 government deadline to finish a restructuring plan or join Chrysler in Chapter 11 bankruptcy reorganization. The company would prefer to restructure out of court, but even its own executives say the obstacles are formidable.
"I think bankruptcy is highly likely, not because the losses are so bad, but because everyone has realized that this company needs fundamental restructuring," said Douglas Baird, a University of Chicago law professor who specializes in bankruptcy cases.
Chapter 11 "seems the best way to clean up the balance sheet, clean up the problems, get a fresh start."
Young conceded that the second quarter will also be tough for GM because it is shutting many of its U.S. factories for up to 11 weeks to slash dealer inventories. But he expects revenue to bounce back once the automaker gets through inventory cuts.
He said GM is making more money on new products than it did on their predecessors, including the Chevrolet Malibu and Cadillac CTS.
General Motors Corp. spent $10.2 billion more cash than it took in from January through March, mainly because revenue fell by $20 billion from the first quarter of last year, to $22.4 billion.
Young expects GM to need another $2.6 billion in federal loans this month and $9 billion more during the rest of the year.
All the talk about bankruptcy, Young said, is scaring some car buyers away. Detroit rival Chrysler filed for bankruptcy protection last week.
"People are concerned about bankruptcy, and that's the reason why we want to avoid it if at all possible," he said.
Government guarantees of GM and Chrysler warranties were not revealed by President Barack Obama until March 30, so consumers did not know about them for virtually the entire first quarter, Young said.
Car buyers, he said, should be reassured by the government's warranty guarantee, but it might take time for word to spread.
GM's quarterly loss amounted to $9.78 per share, compared with a loss of $3.3 billion, or $5.80 per share a year ago.
Although huge, the $6 billion loss was nowhere near GM's worst. The auto giant lost $39 billion in the third quarter of 2007 due mainly to a write-down for unused tax credits.
Revenue tumbled a stunning 47 percent because of declining sales worldwide, as well as huge production cuts and a strengthening U.S. dollar that made income earned in other currencies worth $3.5 billion less to GM.
GM cut structural costs by $3 billion in the quarter mainly with staff reductions, but Young said that was not enough.
"We cannot cut costs fast enough to offset that revenue loss," he said.
Young said GM continues to prepare for bankruptcy while simultaneously pursuing its preferred option of restructuring out of court.
Chapter 11 does not necessarily mean a company goes out of business and liquidates its property. It also allows businesses to keep running and rehabilitate finances without the threat of creditors' lawsuits.
The "revenue implosion," Young said, was due largely to GM's effort to cut inventories, reducing production by 900,000 vehicles globally, or about 40 percent.
Automakers count revenue on their books when cars leave factories for showrooms. If they are not making vehicles, they do not make money.
GM ended the quarter with $11.6 billion in cash, down from $14.2 billion on Dec. 31.
GM reported an operating loss of $3.2 billion from its North American operations alone. In Europe, the operating loss totaled $2 billion. Italy's Fiat SpA is in talks to take over GM's operations in Europe -- Germany's Opel, Britain's Vauxhall and Sweden's Saab.
Fiat confirmed Thursday that it is also interested in GM's operations in Latin America, where the U.S. company squeezed out a small profit in the latest quarter.
GM faces an almost impossible list of restructuring tasks before the June 1 deadline. It must get new cost-cutting agreements with unions, close factories, cut jobs and complete a debt-for-stock swap with 90 percent of its bondholders to prove to the government it can repay loans.
The government could wind up with 50 percent of GM's stock, while a United Auto Workers' retiree health care trust fund could get around 39 percent. Of the remainder, 10 percent has been offered to bondholders and 1 percent would go to existing shareholders.
GM shares fell 6 cents, or 3.7 percent, to $1.60 in afternoon trading.
-------------------- Wise men learn more from fools than fools from the wise. Posts: 3827 | From: beautiful California | Registered: Sep 2008
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he was a total animal.
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