The bad side of GM/Chrysler bankruptcy surfaces

Discussion in 'Politics, Religion, Social Issues' started by Shivetya, Aug 8, 2009.

  1. Shivetya macrumors 65816

    Joined:
    Jan 16, 2008
    #1
    http://www.freep.com/article/20090807/BUSINESS01/908070382

    Now comes the first of the fun reveals post GM/Chrysler bankruptcy. Hundreds of millions of dollars of fines and work related to polluted areas they used and abused. Trickle down has never been executed better than this, not only did they get our money up front they left the tab behind for their mess.

    Really, how is this justified? So not only were we out billions bailing out these two corporations the hidden costs are just starting to surface. This is change? Both of the new companies should be sued to fix the crap they left behind.
     
  2. Desertrat macrumors newbie

    Joined:
    Jul 4, 2003
    Location:
    Terlingua, Texas
    #2
    "Both of the new companies should be sued to fix the crap they left behind."

    Okay, fine. But you're suing yourself, as a U.S. taxpayer-owner; the Canadians, as partial owners; and the UAW, as partial owners.

    Hey, it was an obamaphile deal, was it not? :)

    'Rat
     
  3. mkrishnan Moderator emeritus

    mkrishnan

    Joined:
    Jan 9, 2004
    Location:
    Grand Rapids, MI, USA
    #3
    Just to play devil's advocate... the alternative was generally to let GM sink, yes? If GM sunk, isn't it almost entirely unlikely that they would have made good on these environmental liabilities anyway? They would not have that much in liquifiable assets, and this would've been too low on the totem pole.

    I'm in agreement that there are some serious ramifications to the GM deal both as a precedent and just in and of itself -- particularly the ultra-rapid bankruptcy and the real question of whether appropriate stewardship and adherence to laws was engaged in during this process.

    I'm not sure this particular issue, however, is a delta between this plan and the alternative, however.
     
  4. Zombie Acorn macrumors 65816

    Zombie Acorn

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    Feb 2, 2009
    Location:
    Toronto, Ontario
    #4
    Pollution fines are the least of our worries.
     
  5. .Andy macrumors 68030

    .Andy

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    Jul 18, 2004
    Location:
    The Mergui Archipelago
    #5
    This has always been pretty much the reality of trickle-down economics.
     
  6. quagmire macrumors 603

    quagmire

    Joined:
    Apr 19, 2004
    #6
    The benefits of the 363 sale. GM and Chrysler was able to put these bad assets into the bad GM and bad Chrysler.
     

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