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sw363535
Honored Advisor

Re: Can you guess?

Maybe my stock value paid for the volt.

 

It is hard to defend the gm/government theft of owner equity.  

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Palouser
Senior Advisor

Re: Can you guess?

That's what bankruptcy is all about. Shed liabilities and go on. Chevrolet had been struggling off and on for some time. Poor management, poor planning. Ford went about it completely differently and didn't need a bailout.

 

Everyone who loses feels robbed. Pensioners and employees who see their retirement halved and healthcare disappear. Few of the companies kept their accounts current. Much of the burden is shifted to the government for benefits. Common practice, and a huge number of stockholders and employees suffer long term.

 

If corporations were legally required to keep funds covering obligations current (and if it was enforced) then it would also help protect shareholders. Shareholders want dividends at the expense of employee obligations. All lose in the end. That was a huge issue in the case of GM.

 

There was no theft by the government. The Bush administration pumbed in billions but it wasn't enough. W/o the government refinancing the GM corporate entity after it emerged from bankruptcy GM would have disappeared leaving little value for sure. Bondholders refused an earlier settlement and therefore got nothing.

 

 

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kraft-t
Senior Advisor

Re: Can you guess?

Son n law is lusting after a Nissan leaf. He runs his house on solar power and has a minimum light bill. He would get a huge kick out of free electricity for his work car. The man loves to save money. Yet he and his family lead a very event full life. Their youngest is less than 3 years old and just finished her 4th cruise. He works a 7 days on and 7days off work schedule which allows him to work extra shifts to pile up the income and live well.

 

But he will save a few dollars here and a few dollars there and a whole lot of dollars every once in a while.

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