Monday, June 1, 2009

Motor City's burning

As has been expected for the last 60 days, GM filed for bankruptcy this morning. It was an electronic procedure, almost automated. & the American taxpayers just as automatically forked over another $30B to tide the behemoth over through the expected 60- to 90-day Chapter 11 period.

That’s in addition to the $20B we’ve already flushed down this particular sewer line.

Chrysler, the other automotive welfare mother, has been authorized by its own bankruptcy judge to sell its assets to Fiat. That deal doesn’t involve any real cash, just a promise by Fiat to build cars people will actually buy.

Quelle idée.

People have been watching the Chrysler process to predict what type of bankruptcy we can expect from GM. But the Fiat deal was already circling the body in the water before Chrysler filed, and there’s no one in sight except the US taxpaying chumps for infusing billions into a company that’s shown again and; again that it can’t or won’t reorganize its way out of a paper bag.

So it’s going to be a long, hot summer.

No comments: