Mama Bin Cranky

Screaming on the Inside

GM Bankruptcy Questions

Posted by madjillmom on June 1, 2009

I have several questions about the GM Bankruptcy:

  1. How is this not a transfer of wealth from the bondholders and the shareholders to the UAW workers?  The bailout is to save 50,000 jobs at a cost of over $400,000 per job.  That is utterly ridiculous.  This is a payoff to the unions by the Democrats.
  2. If the US government is now the defacto owner of GM, and China is the owner of over 750 billion of our debt, does China now own GM?
  3. Why are medical benefits or retirees such a big issue to the UAW?  How many of the retirees are not eligible for Medicare?  If that number is a sizeable amount then that indicates that the blue collar jobs of the UAW are too generous and need to be cut before the bondholders and shareholders are reduced to poverty.  If a guy can retire at full benefits at 40 at GM, there is something wrong.  If you can reasonably retire at 65, then medicare is the provider of healthcare and there needn’t be any huge issue with legacy costs.
  4. How is it that a 31 year old man with no real corporate experience is the government task force guy to shepherd GM through the process of bankruptcy?  
  5. Will the Car Czar’s wife sign off on the dealership closures and did she sign off on the Chrysler dealer closures?  She is a former Democratic fundraiser who know which dealers supported which candidates. 

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