Originally Posted By: javacontour
Not this argument again.
The question is do you want the pain now or later? GM/Chrysler, bad bank debt all got transferred to the taxpayer. Some was paid back, others not yet, and the culture in management has not changed.
Perhaps it would have been better for all in the long run had we let the market do it's job. Might be a different perspective on Wall Street, in corporate boardrooms and inside the beltway.
Instead, we kicked the can down the road and almost zero lessons were learned.
Sure, it would suck for GM to have had to restructure the traditional way.
But then it sucked for the bond-holders and stock holders who were not the UAW to have their value wiped out. Not just Richie Rich, but guys like you and me lost value in pension funds, 401(k) and IRA accounts when the sweetheart deal was cut.
The UAW got to skip several places in line and got a larger share than they would have received had the GM and Chrysler bankruptcies gone the traditional route.
Those who held bonds (and maybe stock) in the previous iterations of those companies who didn't get the same sweetheart deal have a legitimate gripe about how it was done.
Those who complain about the greed on Wall Street and in the board rooms should not look at this deal as a good thing. It only perpetuated the entitlement mentality in corporate America.
That wasn't going to happen. GM would have needed DIP financing but it simply wasn't available. Thats not an opinion, its a fact.
Not this argument again.
The question is do you want the pain now or later? GM/Chrysler, bad bank debt all got transferred to the taxpayer. Some was paid back, others not yet, and the culture in management has not changed.
Perhaps it would have been better for all in the long run had we let the market do it's job. Might be a different perspective on Wall Street, in corporate boardrooms and inside the beltway.
Instead, we kicked the can down the road and almost zero lessons were learned.
Sure, it would suck for GM to have had to restructure the traditional way.
But then it sucked for the bond-holders and stock holders who were not the UAW to have their value wiped out. Not just Richie Rich, but guys like you and me lost value in pension funds, 401(k) and IRA accounts when the sweetheart deal was cut.
The UAW got to skip several places in line and got a larger share than they would have received had the GM and Chrysler bankruptcies gone the traditional route.
Those who held bonds (and maybe stock) in the previous iterations of those companies who didn't get the same sweetheart deal have a legitimate gripe about how it was done.
Those who complain about the greed on Wall Street and in the board rooms should not look at this deal as a good thing. It only perpetuated the entitlement mentality in corporate America.
That wasn't going to happen. GM would have needed DIP financing but it simply wasn't available. Thats not an opinion, its a fact.
