You think the bailed out financial entities are viable businesses in the face of current and future circumstances?
No pleading was required by the good ole boys at the banks and brokerage houses. They were not asked to surrender their first born.
In that sense with the number of job involved in this it is good for motors.
Standing down would be a better approach than begging.
The politicos will panic when they find out the bankruptcy papers have already been written and would have been utilized if it had been a standoff.
What is good for the financial geeks is good for lousy manager’s gander.
GM, Chrysler considering bankruptcy to get bailout report
Thu Dec 4, 2008 8:06am EST reuters
(Reuters) – General Motors Corp and Chrysler LLC are considering accepting a pre-arranged bankruptcy as the last-resort price of getting a multi-billion dollar government bailout, Bloomberg reported, citing a person familiar with internal discussions.
In response to automakers’ bailout plea, staff for three members of Congress have asked restructuring experts if a pre-arranged bankruptcy — negotiated with workers, creditors and lenders — could be used to reorganize the sector without liquidation, Bloomberg said.
General Motors and Chrysler could not be immediately reached for comment by Reuters.
Industry executives and analysts say the immediate carnage from a bankruptcy of General Motors Corp, Ford Motor Co or Chrysler would spread throughout an industry that is bleeding cash in a global slowdown.
Jim Sinclair’s Commentary
Another tidbit from Alf Fields:
Commentary From Alf Fields:
Major ONE up from $256 to $1,015 (actually 4 times the $255 low);
Major TWO down from $1015 to $699, say $700 (a decline of 31%);
Major THREE up from $700 to $3,500 (a Fibonacci 5 times the $700 low);
Major FOUR down from $3,500 to $2,500 (a 29% decline);
Major FIVE up from $2,500 to $10,000 (also a 4 fold increase, same as ONE)
We have already blown through waves one and two. Wave three is projecting out to $3500 and wave 5 to $10,000 for an ounce of gold. This is the point. Last year we had a $400 billion deficit. Next year we will have a $2.5 trillion deficit and in the next four years a minimum of $10 trillion deficit. It is not hard now to see why the price of gold would go to $10,000 per ounce.
What this means is that the Federal government will burn the house down printing dollars which will lose value at a dizzying rate. Conveniently, this unbridled printing will allow the US government to pay all its bills domestically and to foreign holdings by simply printing away debt. This will also have a massively negative impact on all our creditor nations. I would not be surprised if they ended up in far worse shape than us.
We have seen it time after time when a big debtor runs its creditors into the ground and ends up smelling like a rose. This is most likely what will happen to the US although the citizenry will also go through some real tough times.
What to do? Find those asset classes which will hold their value during this process. It sounds ridiculous, but it is that simple and you will prosper.
Elliott Wave Gold Update 23
By Alf Field Dec 2 2008 10:39AM
Jim Sinclair’s Commentary
The source is not exactly the Financial Times, but the idea is intriguing.
DESTRUCTIVE BET HEDGING SCHEMES CONTINUE
Now, everyone is screaming bloody murder and there is only one solution: arrest them all!