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Government Motors

Submitted by Tonguetied on Fri, 06/05/2009 - 17:40
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If Chrysler and GM had been permitted/forced to declare bankruptcy months ago then there would not have been massive amounts of government money owed by those two companies.  As it was the debt owed allows the government to claim a majority ownership of both companies.If the single entity owning a majority of GM and Chrysler were not the US government would they be subject to a anti trust ruling from the federal government?How much collusion will there be between Chrysler and GM in the future with a common majority shareholder?

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antitrust

Submitted by chemjeff on Fri, 06/05/2009 - 18:28.

That is a good point.  If the government was a private company it would be hauled up on antitrust charges for attempting to monopolize an industry.  Here again is Lesson #2,379,723 on why bailouts are a bad idea: because they permit government to play the role of venture capitalist without being bound by any of the rules.

Genmar bankruptcy....

Submitted by ArmanA on Sat, 06/06/2009 - 05:02.

The boating industry has been hit by high gas prices and the recession. The Genmar bankruptcy will be making waves (cheap pun) in the marine world.  The company filed for bankruptcy, and the Genmar bankruptcy means bad news for the luxury yacht industry.  Perhaps they'll hold a wake for it.  Emergency loans weren't enough to stave off the filing, as Genmar Holdings, the parent company, had to file as there wasn’t enough cash to maintain Carver Yachts and other subsidiaries, as too much was owed to unsecured creditors and unsecured creditors, and they will be heading into U.S. Bankruptcy Court soon enough.  Luxury toys, like yachts, are discretionary spends, and the first to go in recessions, as you can't justify a cash 'til payday loan on a boat, thus the Genmar bankruptcy.

You made such a good point.

Submitted by WalE on Tue, 07/28/2009 - 23:04.

You made such a good point. It likes travelling to two destinations with one car.

Nevertheless, I think the government has no choice. They might not wanna see two biggest car manufacturers falling at the same time. That would hurt many people, and, moreover, it may make many people think that the economic crisis is really bad (actually, it is). So, people will panick and the situation is even worse.