Friday, November 7, 2008

Why the GM/Cerberus/Chrysler Bailout is bad for taxpayers and doomed to fail without the benefits of a Chapter 11 filing for both Chrysler and GM

Robert Farago at The Truth About Cars, November 6, 2008, introduces a guest editorial "by a New York City bankruptcy lawyer who wishes to remain anonymous."
Cerberus Capital, a highly secretive NYC-based vulture investment fund, wants the U.S. government and taxpayers to bailout its failed investment in Chrysler and its failing investment in GMAC. Its partner in this raid on the US Treasury is General Motors, a woefully insolvent automobile manufacturer whose CEO is paid $40k each day. Here’s why a bailout for GM and/or Chrysler is a bad idea.

P.S. Mr. Farago is the author of "General Motors Death Watch", a series of editorials which began April 3, 2005.

Update: Blueprint for a Taxpayer-Funded GM C11, General Motors Death Watch 213

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