GM Headed for World's Largest Chapter 11 Filing
June 17th, 2009 10:34 AM
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GM bondholders have only tendered “a low-single digit percentage” of GM’s $27 billion debt-for-equity swap offerings, reports Reuters. This (along with unfolding government/UAW deals) sets GM on a crash-course for bankruptcy, and a filing is expected as early as tomorrow, according to another Reuters report. Both stories are replete with quotes arguing the inevitability of GM’s debt-swap failure, although with a 90 percent required participation it didn’t take a professional analyst to figure out that GM’s offer was DOA. Next stop, bankruptcy court.
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The US can't go bankrupt..they'll just raise taxes until it equals out. My economics textbook says so. Wait, what is a Laffer curve? Who was Keynes? It's too hard, I'll just vote however my union steward tells me.
Chapter 11. It's what you've asked for. Just remember that.
This will mark the official beginning of our next 'Great Depression.' Think I exaggerate? Wait a few months. People have no idea how many knock on effects this is going to have. The government and their advisers, both legal and industry experts, admit as much. It's going to be a deep, dark time in the USA, and many other countries, I might add.