Moody’s gives it a 70 percent likelihood. The agency also gives 25 percent odds of a bailout, no “soft-landing” bankruptcy involved, and a 5 percent chance of a hard bankruptcy not part of a bailout. (Of course, we know how accurate Moody’s analysis has been the last five years. Then again, GM Is not a tranched CDO.)
Besides, given that Bush broached the bankruptcy option yesterday, even a Moody’s on the take could make this prediction.
Anyway, this is definitely a good news, bad news situation.
The good news is that it reduces the likelihood of pounding government sand down a rathole.
The bad news, as I blogged yesterday, is that a bankruptcy filing, especially one supported by Shrub, could be a back-door way to get Southern senators’ anti-labor strategy on the table through the usual “wage concessions.”
As I said earlier, ask airline pilots and flight attendants from most non-Southwest airline companies about that.
Bad news part 2 is also part of this. The General had already announced it is delaying building the engine-making factory for the hybrid-drive Chevy Volt. No word on how long of a delay is planned.
You can bet whatever delay GM planned earlier is going to get even longer. So much for the $25 bil in clean car loans from Congress, eh?
No comments:
Post a Comment
Your comments are appreciated, as is at least a modicum of politeness.
Comments are moderated, so yours may not appear immediately.
Due to various forms of spamming, comments with professional websites, not your personal website or blog, may be rejected.