It seems like a nightmare with no end in sight. Dumb Money will hail their fight for survival but ignore the fact that both companies, GM and AIG, should have fallen victim to Economic Darwinism a long time ago. GM should have filed for Chapter 11 last year, while AIG should have been completely wiped off the financial and economic map. A long time ago, those two were considered blue chip global economic giants but have crumbled ever since that bubble busted. Now they are nothing more than a Dumb Money illusion, and they try to hold on to them regardless at what cost and negative economic impact.
GM's only option was bankruptcy but idiotic socialist policies thought it would be nice to waste over $30 Billion before they have to give in and understand that bankruptcy is the only solution for a severely mismanaged, over-employed and debt ridden company on the decline (Experts say GM bankruptcy almost inevitable; AP). GM's new CEO Henderson, who took over after the government ousted former CEO Wagoner in a move way overdone but accomplished with wrong methods, continues to hold on to his hope that GM may avoid a necessary bankruptcy filing which needs to be followed by more heavy job cuts (GM CEO says tasks are large to avoid bankruptcy; AP).
Another possible step after the bankruptcy filing is to leave Detroit, once an auto manufacturer fortress which has since broken down to one of the poorest big cities in the country with plenty of challenges ahead, altogether (GM chief leaves door open to move out of Detroit; AP). Michigan politicians scramble to avoid such a move. In the meantime, six GM executives dumb over 200,000 share into the market in an attempt to at least get a few bucks out of the collapsed automaker (Six GM executives sell more than 200,000 shares; AP). GM dismisses the sales and claims there is no lack of confidence by executives. Sure, and a mutual fund is a professional investment vehicle managed by sophisticated investors. Pathetic!
Chrysler has already filed for Chapter 11 and Fiat picks up what they want. Fiat also offered to snap up all of GM's European assets, most likely during the Chapter 11 filing. Ford, soon to be the only U.S. auto manufacturer left, continues to struggle for survival. Ford has avoided to ensure their total collapse and refused to take socialist money. They rather go down then allow the Obamanites to ruin the company, which makes their survival more likely.
Ford will continue to face tough times over the next few years and needs to accelerate their cuts in operating expenses. Ford has offered 300 Million shares to boost capital (Ford offering 300M shares in public offering; AP). Unless the UAW does not play along, Ford may have to follow Chrysler and GM with a bankruptcy filing sometime next year.
AIG, which has cost taxpayers over $200 Billion due to severe lack of competence and idiotic socialistic agendas, continues to trim down and sell assets (AIG sells Japan headquarters for $1.2 billion; AP). AIG takes their time to get rid of parts of their business and they may finally face reality. AIG should have been gone over six months ago and while they attempt to imitate to operate as a viable business they lose customers as well. It is only a matter of time, and once the second wave of the financial crisis hits, the economy resumes its downtrend and the credit crisis starts to unfold, AIG will not have the strength to continue to follow their illusion and pay the bill for constant mismanagement.
GM's only option was bankruptcy but idiotic socialist policies thought it would be nice to waste over $30 Billion before they have to give in and understand that bankruptcy is the only solution for a severely mismanaged, over-employed and debt ridden company on the decline (Experts say GM bankruptcy almost inevitable; AP). GM's new CEO Henderson, who took over after the government ousted former CEO Wagoner in a move way overdone but accomplished with wrong methods, continues to hold on to his hope that GM may avoid a necessary bankruptcy filing which needs to be followed by more heavy job cuts (GM CEO says tasks are large to avoid bankruptcy; AP).
Another possible step after the bankruptcy filing is to leave Detroit, once an auto manufacturer fortress which has since broken down to one of the poorest big cities in the country with plenty of challenges ahead, altogether (GM chief leaves door open to move out of Detroit; AP). Michigan politicians scramble to avoid such a move. In the meantime, six GM executives dumb over 200,000 share into the market in an attempt to at least get a few bucks out of the collapsed automaker (Six GM executives sell more than 200,000 shares; AP). GM dismisses the sales and claims there is no lack of confidence by executives. Sure, and a mutual fund is a professional investment vehicle managed by sophisticated investors. Pathetic!
Chrysler has already filed for Chapter 11 and Fiat picks up what they want. Fiat also offered to snap up all of GM's European assets, most likely during the Chapter 11 filing. Ford, soon to be the only U.S. auto manufacturer left, continues to struggle for survival. Ford has avoided to ensure their total collapse and refused to take socialist money. They rather go down then allow the Obamanites to ruin the company, which makes their survival more likely.
Ford will continue to face tough times over the next few years and needs to accelerate their cuts in operating expenses. Ford has offered 300 Million shares to boost capital (Ford offering 300M shares in public offering; AP). Unless the UAW does not play along, Ford may have to follow Chrysler and GM with a bankruptcy filing sometime next year.
AIG, which has cost taxpayers over $200 Billion due to severe lack of competence and idiotic socialistic agendas, continues to trim down and sell assets (AIG sells Japan headquarters for $1.2 billion; AP). AIG takes their time to get rid of parts of their business and they may finally face reality. AIG should have been gone over six months ago and while they attempt to imitate to operate as a viable business they lose customers as well. It is only a matter of time, and once the second wave of the financial crisis hits, the economy resumes its downtrend and the credit crisis starts to unfold, AIG will not have the strength to continue to follow their illusion and pay the bill for constant mismanagement.
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