Thursday, March 5, 2009

Flat Tire

The thing about ruts is that they're so rut like.

Tough to mentally motor out of them. My rut? Not to start a pissing match of my rut's deeper than yours because it's certainly not deeper than the rut GM finds itself in this morning. Looking for some reading to nod off too this evening? Look no further than the annual report prepared by Deloitte & Touche which raised “substantial doubt about the ability of General Motors to continue as a going concern.” Duh. Tell us something we didn't already know before that big cash influx.

It would have been more fun to have taken that taxpayer cash bailout over the ambassador bridge and blown it on strip club fun in Windsor Canada where the dollar still goes a bit far. Tiny bit farther. Shoulda coulda woulda. Dumb white guys.

GM warned last month that its auditors may raise doubts, and industry analysts said auditors’ statements may trigger clauses in some of GM’s loans, placing them in default but the company said in its filing that it has received waivers of the clauses for its $4.5-billion secured revolving credit facility, a $1.5-billion term loan and a $125-million secured credit facility. GM spokeswoman Julie Gibson said there is no clause in the terms of the government loans that places them in default if the auditors raise doubts about GM’s ability to keep operating. “That was not a condition of the loan. It’s not in the agreement,” she said. Nice. Lucky lucky us. Thanks again Bush administration.

Do you remember when Chief Operating Officer Fritz Henderson said at the time of the bailout that the government would be the only place the company could get financing for a Chapter 11 reorganization, because the credit markets were frozen. The worst-case bankruptcy scenario would cost the government $100 billion, Henderson said, because revenue would severely drop due to a lack of sales. GM deserves to be stuck in the mud. I can't imagine any more tax payer cash being thrown under the wheels to create traction. As for me, the sun shining today makes my mental rut that much smaller. Could be worse...we could live in Detroit.

1 comment:

Anonymous said...

total shame that 100 year-old firms are imploding daily..GM is one of my fav's..

what happens in the next world war when we have to rely on detroit for planes, tanks and jeeps and there are none to be made? we raise our flags and surrender like the french? do we hijack the bmw plant in south carolina and convert to military use? do we import weapons from china?

when an economy or country looses it's ability to manufacture's a sad day..
we can't rely on fizzy soda, fast food, software, and our entertainment industry to save our skin..can we?