Obama explained today that Canada and the U.S. government (in addition to others) will take stake in GM giving tax payers a sixty percent stake in GM (roughly a $50 million investment). However, in the end GM will be redefined and come out ahead. Experts are saying building a new GM is not going to be pretty. The biggest cost is jobs.
Keep in mind UAW is offering those with lost jobs severance packages that are pretty hefty. CNN reported the severance packages are 100 percent of salary for a year or 50 percent of salary for two years.
Confused yet? Here it is in normal terms. The economy sucks, GM got greedy, made poor business choices and now we're all in the tanker because one of the biggest industry giants in North America has run out of money.
I am trying to understand what all this bankruptcy and restructuring of General Motors will mean for us lowly tax payers out here in BFE. I've come to the conclusion that we all might as well pick out one of these - because that's what it's coming too.
Obama says consumers are already buying cars because they are "confident". (Chrysler sold more cars in May than it did in April).
Nope - they're buying because they're dirt cheap and dealerships are giving them away before they have to eat the cost.
Here's something Obama. I'm confident I'm going to get a good deal on a truck in August.
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