Where have we heard this before?
Stephen Harper, the prime minister, and Jim Flaherty, the federal finance minister, have been steeling Canadians in recent days for the possibility that the aid for GM will be large.
“Look, it will be a very expensive proposition” helping the Detroit automakers, Mr. Harper said in Calgary last Friday. “That said, the reality is that not doing anything would be a lot more expensive, a lot more damaging.”
Tell that to the Chrysler dealers, investors, and suppliers.
And now that Obama and the unions have taken control of the car industry, GM somehow decided they should pay staff three weeks early.
Canadian taxpayers are poised to own a stake in General Motors Corp. under a reorganization plan being hammered out for the automaker as it edges towards a bankruptcy protection filing by Monday.
Political and economic observers expect the federal and Ontario governments to take a portion of GM shares in exchange for offering the automaker an estimated $10-billion in financing to help it reinvent itself and pay its bills while it is under court protection. The aid would represent roughly 20% of the US$50-billion that will be pledged to the automaker by the U.S. government of Barack Obama, according to separate media reports in Washington. The U.S. aid includes US$19.4-billion in loans GM has already drawn down.
I say it would be more than wise to let em go.. would you invest in a company headed to bankruptcy? Wait till they are through with proceedings, then decide whether it’s worth throwing OUR money at them.
Obama has made sure this investment (along with Chrysler) is one of the worst possible… ever:
G.M. BONDHOLDERS: PEOPLE LIKE YOU AND ME. “The government is punishing one group of workers to reward another.” That’s the Chicago Way.