Quote:
Originally Posted by camcojb
I think what a lot of people are afraid of is the loan will be burnt through in a few months and they will be right back where they were, except with billions of our money gone.
If I try to get a business loan I have to prove my credit worthiness and ability to pay it back. So I think GM needs to show what changes they're going to make that satisfies the lender that they have a good chance of being re-paid. I don't think they've said a single thing they're going to do differently, and if true I see that as the problem.
I hope this all works out. I have many friends that work there, most on this board. Plus I'm a big GM guy anyway, and I realize that this reaches much further than just direct GM employees losing their jobs. But I think GM should be working on a plan to right the ship financially. If they come up with a viable plan I think the loan is there. Actually I think the loan will happen even if they don't change anything just due to the financial impact it'd have, but if the goal is to survive and compete with the other companies they need a new business model. You cannot keep doing the exact same thing and expect the results to change.
Jody
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Herein lies the difference. The money given to banks/financials was not just to save them, but to stimulate further lending in our economy and to help keep this flailing economy moving. Some of them are accused of not using the money to actually lend, which is a big problem. But the automakers have no plans for getting back to profitability, and they didn't help their collective and individual causes with that poor showing in front of Congress the other day. They refuse to consider bankruptcy in any form? Why not?