The mortgage

[tw]

Originally Posted by TheMercenary

GM should just be allowed to fail.

It is still possible that if GM was allowed to fail, then no employee jobs would be lost. But obvious even in the press are lies about what a bankruptcy threat does. By driving both Chrysler and Ford to near bankruptcy in 1979 and 1981, then both companies were saved without job losses. Because bankruptcy fixed the problems, then both companies were earning record profits four or eight years later.

Unfortunately, socialism is alive and well in America. Ross Perot is from a long list of people who tried to save GM. But too many Americans so wanted to destroy America as to keep buying that GM crap. At least one here even praised his GM product rather than admit some glaring facts.

The products were saying GM needed bankruptcy in 1991. Indeed, GM was only four hours away from bankruptcy when bean counters invented money games to protect their jobs. Among the new money games - short the pension funds.

A game played by many banks. When the homeowner did not make a payment, the finance company simply added that payment to the principal and called the mortgage viable. Therefore massive numbers of mortgages were in default - but not on the spread sheets. More Enron accounting.

Just another technique made all but legal by our illustrious leaders - who talked to god.

[DanaC]

Originally Posted by TheMercenary

GM should just be allowed to fail. Let's be done with it. Toyota can be our new car company. But of course that is because I own a Toyota.

Nice to see you're in touch with the bigger picture Merc :P

[Pie]

Let 'em sell off what profitable/popular brands they have, and let the rest fold.

[xoxoxoBruce]

Some can't pay the mortgage.

[tw]

Originally Posted by xoxoxoBruce

Some can't pay the mortgage.

Some are finally asking damning questions of Paulson. The original $700billion intent was to buy toxic assets and to help restructure mortgages. Well a blank check is still not restructuring mortgages. But now it will be used to enrich $1.8 billion GM with how many tens of $billions?

People are suspecting that Paulson has no idea what he is doing - jumping from fire to fire and never putting any out. Major companies are now purchasing finance companies to also qualify for TARP money.

Simply give $1billion to Telsa Motors. Let them buy a major part of GM and make a car that actually might be profitable. (Obviously not a solution, but it makes more sense.)

Meanwhile, TARP may be sucked into AIG. Having been given $85billion, AIG burned through that. Government next bought $billions in preferred stock as if that would justify more money. Well new obligations mysteriously keep arising in AIG along with new credit obligations. The entire net worth of AIG may only be $27billion - not even enough to cover the governments AIG preferred stock.

Worse, there appears to be no end to AIGs need for more money to save their maybe $1trillion of contracts. AIG keeps finding more obligations that were never known previously on the spread sheets. Another black hole that means TARP may have even less money left to help restructure mortgages.

Be scared. Every week, more mysterious debts suddenly materialize. Debts that previously disappeared with Enron accounting standards. Apparently a 40% stock market drop is not the bottom.