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RichM

Record Loss Of $8bn At Gm Could Swell Even Further

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I fear they made be facing Chapter 11 at the start of Q2, they have the cash reserves to carry out short term operations but those lingering longterm liabilites will have to be handled at some stage, Chapter 11 bankruptcy is almost the only way out. It would make Delphi appear like a sideshow.

Anyone out there have a predaliction for betting on spectacularly unfortuitous outcomes? (well, you're on here). What ya say folks, March, April, when will the chapter 11 restructuring come?

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It seems right now that a lot of the car companies are facing real problems.

I thought it had given up on this market and become a lender? - GMAC. :lol:

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I fear they made be facing Chapter 11 at the start of Q2, they have the cash reserves to carry out short term operations but those lingering longterm liabilites will have to be handled at some stage, Chapter 11 bankruptcy is almost the only way out. It would make Delphi appear like a sideshow.

Anyone out there have a predaliction for betting on spectacularly unfortuitous outcomes? (well, you're on here). What ya say folks, March, April, when will the chapter 11 restructuring come?

If GM go into Chapter 11, Ford and Chrysler will surely follow because the Airline industry has recently demonstrated the longstanding US dictum (think 19th century RailRoads) that it is impossible to compete with bankrupts if they can continue to trade. Chrysler might be slower than Ford because of the international implications, but I suspect Daimler-Benz might just hastily de-merge and let them do it themselves.

Now let's not beat about the bush: 'needing to enter Chapter 11' is shorthand for needing to walk away from the wages, healthcare benefits and pension entitlements that car industry management freely negotiated with the unions over the decades.

Before 'negotiations broke down' with the UAW and they were forced back into GM, Delphi were talking about 60% pay cuts for some jobs. Expect GM, Ford and Chrysler to talk similar percentages (for the factory staff, of course, not the top executives). FFS, how can any union accept that?

I predict there's going to be significant industrial strife, but the realities of globalisation will win and a large area of the US manufacturing midwest is going to see enormous income and wealth destruction. Think of places like Burnley or South Shields; but scaled up by a factor of 10.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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