21 November 2008

GM intends to go Chapter 11...

yep, you read it right, GM, or more specifically GM's top management intends to file for Chapter 11 next year. as a 'controlled demolition' or a conjunctive merger/dispersal exercise. (complete with all manner of innovative 'golden parachutes')

the TELL ? ...

yesterday's news of GMAC filing to become a "bank".

such a move is chocked full of Federal Govt. regulations and options (2-5 years to divest 'non-banking' enterprises, of which GM's car-making is one, as well as Cerberus (owner's of Chrysler and a chunk of GMAC at the same time)but it will give GM/Cerberus/GMAC access to Paulson's $700Billion. hmmm.

today's news/rumour is of a potential Obama plan for a pre-packaged Chapter 11 "deal" for the Big 3. (on top of the car-state Senator's proposal to repurpose the already passed $25Billion to the automakers for re-tooling for hybrids)

the $25Billion "rescue plan" debated the last two weeks and now postponed until December (no show plan, no get money) is a product of the intended "controlled demolition", as the big OIL companies currently are the recipients of dozens, if not scores, of Billions of Dollars annually in tax-breaks/credits. to repeal just a fraction of those tax breaks to the OIL companies (who've enjoyed record profits during the past few years) would more than pay for any 'rescue plan' to the Big 3, yet no mention of it in the press, pundits, or Congressional hearings.

isn't that curious ? not really.

the OIL companies regard the re-tooling (and especially the public financing) of the Big 3's factories toward more fuel efficient hybrids as a mortal threat. one which they can easily delay or destroy via press agitation and lobbying pressure. (as well as gas pump price manipulation)

the OIL companies have much experience at getting Americans to forget the pains of high gas prices. now they will do it again, assisted by the recession/depression and federal budget deficits if necessary.