GM: 'Substantial doubt' about survival

[Lunican]

GM: 'Substantial doubt' about survival

Automaker's annual report says it hopes to get $7.7 billion from the government to remain viable.

NEW YORK (CNNMoney.com) -- General Motors Corp. said in a government filing Thursday that its accounting firm has found there is "substantial doubt" about the automaker's ability to survive.

The embattled automaker made the disclosure in a 480-page filing with the Securities & Exchange Commission.

GM has sustained large and continuing losses, while saying it needs additional federal loans to remain in business. Thursday's statement from the company's auditors presents another hurdle the automaker will have to clear as it makes the case that it deserve additional taxpayer support going forward.

http://money.cnn.com/2009/03/05/news/companies/GM_10K/index.htm

[Sigma]

Meanwhile:

AFL-CIO Union Execs Hold Winter Meeting at Luxury Miami Resort
http://www.breitbart.tv/html/290393.html

"This all comes at a time when the economy is in sort of in the tank and union members are losing their jobs. Here are some numbers released today, for example. Manufacturing - the economy has lost 219,000 manufacturing jobs. Service industry - down 359,000 jobs. The goods producing and construction jobs down 338,000. It is hard to get exact numbers, but many of those people are dues-paying union members who are now without work."

[Joe]

What a shocker. This was the exact reason why people opposed the last bailout several months ago.

If you "loan" money to GM, you're never getting it back. Why should the government give them another 7 Billion dollar loan? It won't make the company viable either. They'll just come begging for 10 Billion next year after they've wasted the old money on their failure of a business plan.

Oh wait, I forgot. Jobs. Apparently it's extremely important that we overpay factory workers regardless of whether their jobs produce products that people want to buy.

GM isn't even a business anymore. It's a giant Ponzi scheme that's begging or leveraging as much debt as possible just so one more generation of auto workers can make their way into retirement before the whole house of cards collapses.

[Sigma]

I couldn't agree more.  Unions aren't giving in at all. Let them rot.  Unions were a great thing at one time by actually benefiting the workers they represented. 

[Lunican]

The general consensus back in October was that these are just loans and the taxpayers will actually make money off of their investment.

[Joe]

^ You're kidding right? Bailout opponents have been screaming bloody murder since the begining that this is like throwing money into a fire.

[Sigma]

But I don't get it.  The union has a convention at a nice hotel, but they are somehow the problem?

The Unions arent asking for money to bail out their years of bad decisions making gas guzzlers and heavy cars.

The big 3 have bowed to union demands over the years Stephen.  They spend huge amounts just to fund pensions, insurance, and high $/hr workers. 

But you are right about one thing - the big three have always been several steps behind other auto makers with quality and providing the consumer what it wanted.  Look at Toyota, Nissan and others.  They built factories here and still kick the big 3 in the pants.  It would be healthy for GM to go bankrupt and REALLY reorganize.  They would come out in the end a better company.

I've worked in a union environment.  It's kind of like welfare - makes people lazy while screaming like children for every toy in the store.

[Sigma]

Look around you Stephen - welfare does make people lazy and keeps them trapped in poverty.  Show me the positive results of 'The Great Society'.  Some people fight their way out of this cruel social engineering, but by large and far, look at how horrible this is. 

We don't produce much here anymore, so Americans need to get of their entitlement throne and start competing because we are being run over by other countries and workers who are more than happy to take the work. Having said that, just so you know, I'm against bad working environments as anybody.

And I never said anything about being unpatriotic.  But generally lazy - yes.  I knew a few hard-workers.  Did you actually work in a union environment?  I'm interested in your story for comparison, especially since it was in another area of the country.

[Sigma]

Glad to hear it.  Examples of your family are an inspiration already mentioned. 

But again, while work and marriage are steady ladders out of poverty, the welfare system perversely remains hostile to both. Major programs such as food stamps, public housing, and Medicaid continue to reward idleness and penalize marriage.

I think we should stard a thread on this issue by itself, though, we've gotten off track a little here.

[Sigma]

Oh, I don't know - studies maybe?

[Sigma]

Stephen, I started a new thread in Opinion. let's start there and get back to Cars and Unions here.

[Springfield Girl]

It's good that your family was able to use welfare for its true purpose as a tool to move out of poverty but I feel pretty safe assuming that they are in the minority. Go to any housing project and see how many intact, working families you will find.