Tuesday, March 31, 2009

New GM exec says bankruptcy probable; that's good news for taxpayers who don't need bailout

GM's new top executive said today that bankruptcy is probable, which goes in line with yesterday's WSJ report that the Obama administration is intent on GM and Chrysler reinventing themselves in the courts or having their parts sold off.

Bankruptcy would save taxpayers mega billions of dollars to bail out these corporations and their unions that should have pay for the reprecussions of their greed and bad decisions.

The New York Times reports:

DETROIT — The new chief executive of General Motors, Frederick A. Henderson, said Tuesday that bankruptcy was “more probable” than ever for the automaker but that he still hoped to successfully restructure the company out of court.

“We will get the job done,” Mr. Henderson, who is known as Fritz, said in his first news conference since succeeding Rick Wagoner, who resigned at the request of the Obama administration over the weekend.

“We will either do it out of court or we will do it in court,” Mr. Henderson said, “but we will get the job done in terms of recreating and reinventing General Motors as a competitive enterprise, one that wins in the marketplace.”

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