{"id":192424,"date":"2009-04-01T20:52:00","date_gmt":"2009-04-02T01:52:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2009\/04\/01\/reports-that-gm-wants-to-force-gm-into-bankruptcy\/"},"modified":"2009-04-01T20:52:00","modified_gmt":"2009-04-02T01:52:00","slug":"reports-that-gm-wants-to-force-gm-into-bankruptcy","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2009\/04\/01\/reports-that-gm-wants-to-force-gm-into-bankruptcy\/","title":{"rendered":"Reports that GM Wants to Force GM Into Bankruptcy"},"content":{"rendered":"<p>We have reports that appear to be leaked from the White House that say that they want to see GM go through some sort of preplanned bankruptcy <a href=\"http:\/\/www.reuters.com\/article\/newsOne\/idUSTRE53010720090401\">here<\/a>, and <a href=\"http:\/\/www.bloomberg.com\/apps\/news?pid=20601087&amp;sid=aUFsRbmQyiJU\">here<\/a>.<\/p>\n<p>I don&#8217;t see this happening, and I tend to agree with <a href=\"http:\/\/www.nakedcapitalism.com\/2009\/03\/obama-pushing-quick-surgical-big-auto.html\">Yves Smith&#8217;s analysis<\/a> that says that this would be next to impossible, because you would have to essentially get <span style=\"font-weight: bold;\">all<\/span> the creditors to agree ahead of time.<\/p>\n<p>Smith suggests that a realistic timetable for a bankruptcy would be over a year, and the analysis of the cascade effect on auto parts suppliers is that <span style=\"font-weight: bold;\">no one<\/span> in the United States, including Toyota, Nissan, and Honda, would be able to make automobiles for something on the order of a year, because it would force the already tightly strapped auto parts suppliers into bankruptcy too.<\/p>\n<p>I see this as primarily a way to apply pressure to two parties, the UAW and Pimco, who runs the world&#8217;s largest bond fund.<\/p>\n<p>I think that Pimco is particularly a problem.  Their behavior in the GMAC bailout was to dig in their heels, and make <span style=\"font-weight: bold;\">everyone else<\/span> take a haircut, and all indications are that they are doing the same thing with GM.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>We have reports that appear to be leaked from the White House that say that they want to see GM go through some sort of preplanned bankruptcy here, and here. I don&#8217;t see this happening, and I tend to agree with Yves Smith&#8217;s analysis that says that this would be next to impossible, because you &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1108,1004],"tags":[],"class_list":["post-192424","post","type-post","status-publish","format-standard","hentry","category-auto-industry","category-finance"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/192424"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=192424"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/192424\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=192424"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=192424"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=192424"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}