Posts Tagged ‘GM Bankruptcy’

Ralph Nader’s statement on GM’s bankruptcy

Source: Ralph Nader, Consumer Advocate, reprinted at Breitbart.com.  

H/t to Timothy D. Naegele.  Quoting Tim, "Ralph Nader has done enormous positive things for American consumers.  The cars that Americans drive today are safer because of Nader’s tireless efforts."   

Nader Statement On GM Bankruptcy

Today’s bankruptcy declaration in federal court by General Motors is an avoidable, crude weapon of mass devastation for workers, dealers, auto suppliers, small businesses and their depleted communities. For GM’s voiceless owners — the common shareholders — it is a wipeout. The proximate cause of the bankruptcy was supposed to be the inability of GM and the government’s auto task force to reach an accommodation with GM’s bondholders. But late last week, the bondholder problem was moving toward rapid resolution, and was clearly resolvable. Why then are GM and its multibillion government financier proceeding with bankruptcy?

The bankruptcy and the GM restructuring plan are the product of a secretive, unaccountable, Wall Street-minded government task force that assumed power because of a Congressional abdication of historic magnitude. By all rights, the restructuring plan should have been submitted to Congress for deliberative review and decision…

Many, many jobs will be lost that could be preserved. There is reason to question whether too many plants and brands are being closed — a matter that should have been taken up in Congress. Just the closing of hundreds of (GM and Chrysler) dealerships will cost more than 100,000 jobs. These sacrificed jobs will fray communities and impose enormous expenses on government entities that will have to provide unemployment and social relief, while suffering lost tax revenues.

The unionized workforce will see the wage and benefit structure slashed — even though auto manufacturer wages make up less than 10 percent of the cost of a car — so that new jobs at GM will no longer be a ticket to the middle class. This will drag down the wage structure of the entire auto industry — exactly the wrong direction for the country… 

Full article here.

SOURCE Ralph Nader, Consumer Advocate
Copyright 2009 PR Newswire. All Rights Reserved.

 


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Administration’s Statement On General Motors Bankruptcy Filing

Courtesy of Tyler at Zero Hedge

Administration’s Statement On General Motors Bankruptcy Filing

On March 30, 2009, President Obama laid out a framework for General Motors to achieve viability that required the Company to rework its business plan, accelerate its operational restructuring and make far greater reductions in its outstanding liabilities. After two months of significant management engagement, General Motors has developed such a plan and has already begun to make progress toward its achievement. The Company has also secured commitments of meaningful sacrifice from all of its major stakeholder groups, sacrifices sufficient for this plan to proceed forward. As a result, the President has deemed GM’s plan viable and will be making available about $30 billion of additional federal assistance to support GM’s restructuring plan. To effectuate its plan, General Motors will use Section 363 of the bankruptcy code to clear away the remaining impediments to its successful re-launch.

For the better part of a century, The General Motors Corporation has been one of the most recognizable and largest businesses in the world. Today will rank as another historic day for the company—the end of an old General Motors, and the beginning of a new one.

General Motors Restructuring – Shared Sacrifice

The President made clear throughout this process that every one of the Company’s stakeholder would be expected to sacrifice, and that none would receive special treatment because of the involvement of the government. The resulting agreement is tough but fair, and has garnered broad support from GM’s major stakeholders:

  • Operational restructuring: GM is undertaking a significant operational restructuring that will address past failures, dramatically improve its overall cost structure, and allow the company to move toward profitability even if the auto market recovers slowly. As a result of this restructuring, GM will lower its breakeven point to a 10 million annual car sales environment. Before the restructuring, GM’s breakeven point was in excess of 16 million annual car sales.
  • The UAW has made important concessions on compensation and retiree health care that, while difficult, will help save jobs for active employees, pensions and health care for retirees, and make GM more competitive. In virtually every respect, the concessions that the UAW agreed to are more aggressive than what the Bush Administration originally demanded in its loan agreement with GM. Among other things, the UAW’s existing VEBA – to which GM


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Told ‘Ya So (GM: ZERO!)

Courtesy of Karl Denninger at The Market Ticker

Told ‘Ya So (GM: ZERO!)


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Some Facts In The GM Propaganda Race

Courtesy of Tyler Durden

Some Facts In The GM Propaganda Race

Zero Hedge pointed out how abysmally hilarious CNBC’s repetitive conclusion that GM’s bankruptcy is a done deal, when you only have 20-35% of the bondholders on deck. True, Rattner will likely make some urgent phone calls, and attempt a gut (and wallet) wrenching appeal to the holdouts, referring to such flights of fancy as the holdout’s mother, family, the IRS, the SEC, etc. But even all that does not preclude those who believe they stand a chance of getting a better recovery in liquidation than a 20% warrant upside in a company that has in the past made such utter horrors as the Aztek, in appealing to district and, eventually, Supreme Court.

In fact, ZH is quite confident that Mr. Lauria is currently contemplating just what the best overtures to the Supreme Court should be for both Chrysler and GM. Whatever these are, the fireworks will hopefully be interesting: luckily Sotomayor is still not up and running.

As for the facts, Dealscape has a great interview with Jeff Marwil of Proskauer who lays it out straight:

"It’s not a deal if it’s only 20% of the bondholders agree, and it doesn’t mean the plan will succeed. It just means the government has support now from some bondholders, and bankruptcy now seems like a foregone conclusion," Marwil explained.

"I think the greatest challenge will be doing it right the first time and emerging from bankruptcy poised for success. Who knows how long the bondholders will fight? This will be the biggest bankruptcy ever so there are a lot of issues to get resolved," he said.

In other news, ZH has its Bowling Green spies reporting, and I hope to bring to our readers the moment when Gonzalez puts Peck to shame with the fastest steamrolling of the bankruptcy process in recorded history.

 


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GM To File Bankruptcy On June 1

Courtesy of Tyler Durden

GM To File Bankruptcy On June 1

According to Bloomberg. As expected, Good GM will buy all the good stuff, and the garbage (Pontiac Aztek and such) will be thrown away.

Market rallies on the news that 20% of bondholders (the ad hocs) agree with the proposed plan to get warrants in a worthless company.  Hm, what about the 80% who do not?

 

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Phil's Favorites

We are guinea pigs in a worldwide experiment on microplastics

 

We are guinea pigs in a worldwide experiment on microplastics

Microplastics in the Mediterranean Sea. By Dirk Wahn/shutterstock.com

Courtesy of John Meeker, University of Michigan

One of the main problems with plastics is that although we may only need them fleetingly – seconds in the case of microbeads in personal care products, or minutes as in plastic grocery bags – they stick around for hundreds of years. Unfortunately, much of this plastic ends up as environmental pollution. We’ve all seen the gruesome images of a ...



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Zero Hedge

Cooperate Or Die: In Private Meeting, Top Facebook Exec Threatened News Outlets

Courtesy of ZeroHedge. View original post here.

Authored by Jake Johnson via Common Dreams,

During a closed-door and off-the-record meeting last week, top Facebook executive Campbell Brown reportedly warned news publishers that refusal to cooperate with the tech behemoth's efforts...



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Kimble Charting Solutions

Junk Bond 12-month divergence matter this time?

Courtesy of Chris Kimble.

CLICK ON CHART TO ENLARGE

Above compares the Pimco High Yield Fund (PHDAX) to the S&P 500 over the past 20-years.

Junk bonds diverged from the S&P 500 for nearly 24-months, prior to stocks peaking in 2000.

Junk bonds diverged from the S&P 500 for nearly 7-months, prior to stocks peaking in 2007.

Junk bonds have been diverging from the S&P 500 for the past 12-months. Will it be different this time?

At this time “It Doesn’t Matter Until It M...



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Insider Scoop

Morgan Stanley Incrementally Bullish On Salesforce, Says MuleSoft Deal Underappreciated

Courtesy of Benzinga.

Related CRM 10 Biggest Price Target Changes For Tuesday Insider Buys Of The Week: AT&T, GE, Salesforce ...

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Chart School

Bitcoin Update - 6000 is support

Courtesy of Read the Ticker.

Demand shows it hand at support levels, well it obvious that $6000 BTCUSD is support so far.

More from RTT Tv , Ref: Brazil bitcoin currency , Brazil New Accounts
 


 

Main Chart in video



 

Sure fundamentals...



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ValueWalk

Hedge Funds Spending Close To $1M A Year On Alternative Data, But Show Me The Alpha

By Mark Melin. Originally published at ValueWalk.

It should come as no surprise to ValueWalk readers that alternative data has an obsolescence value that is negatively correlated to adoption rates. While we have noted data value dropping as usage and knowledge rise, a known concept in the hedge fund industry. What has been unknown until now is the levels to which fund managers must go to ensure the value of their alternative data does not get lost to the dulling mainstream consensus.

...

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Biotech

Here's what we know about CRISPR safety - and reports of 'genome vandalism'

Reminder: Pharmboy is available to chat with Members, comments are found below each post.

 

Here's what we know about CRISPR safety – and reports of 'genome vandalism'

A standee of the movie ‘Rampage’ at a theater in Bangkok, Thailand. Scientists in the film used CRISPR to create a monster. By Sarunyu L/shutterstock.com

Courtesy of Jianhua Luo, University of Pittsburgh

A movie just recently released called “Rampage” features Dwayne “The Rock” Jo...



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Digital Currencies

What is a blockchain token?

 

What is a blockchain token?

What’s this digital token good for, anyway? knipsdesign/Shutterstock.com

Courtesy of Stephen McKeon, University of Oregon

People are just becoming acquainted with the idea of digital money in the form of cryptocurrencies like bitcoin, where transactions are recorded on a secure distributed database called a blockchain. And now along comes a new concept: the blockchain-based token, which I’ve been following as a blockchain researcher a...



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Members' Corner

There Are 3 Main Theories That Explain Trump's Approach to Putin and Russia-Which One Makes the Most Sense?

What do you think?

Thom Hartmann suggests that the "Manchurian Candidate theory" is the least likely explanation for Trump's pro-Russia behavior in "There Are 3 Main Theories That Explain Trump’s Approach to Putin and Russia—Which One Makes the Most Sense?" (below).  disagrees and suggests that Putin probably has "the goods" on Trump in "Trump’s Plot Against America". (To be fair, Hartmann acknowledges that his three theories are not mutually exclusive.) Jonathan Chait argues ...



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Mapping The Market

Mistakes were Made. (And, Yes, by Me.)

Via Jean-Luc:

Famed investor reflecting on his mistakes:

Mistakes were Made. (And, Yes, by Me.)

One that stands out for me:

Instead of focusing on how value factors in general did in identifying attractive stocks, I rushed to proclaim price-to-sales the winner. That was, until it wasn’t. I guess there’s a reason for the proclamation “The king is dead, long live the king” when a monarchy changes hands. As we continued to update the book, price-to-sales was no longer the “best” single value factor, replaced by others, depending upon the time frames examined. I had also become a lot more sophisticated in my analysis—thanks to criticism of my earlier work—and realized that everything, including factors, moves in and out of favor, depending upon the market environment. I also realized...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

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Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

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All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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