Thursday, March 5, 2009

GM Facing Bankruptcy: Told You So!

GM is facing bankruptcy. Government bailouts are not working for the auto makers, they are not, and will not work to fix the banks. And tax dollars won't help the mortgage crisis.

Such a sickening waste of money.

DETROIT (AP) - General Motors Corp.'s auditors have raised "substantial doubt" about the troubled automaker's ability to continue operations, and the company said it may have to seek bankruptcy protection if it can't execute a huge restructuring plan. The automaker revealed the concerns Thursday in an annual report filed with the U.S. Securities and Exchange Commission.

"The corporation's recurring losses from operations, stockholders' deficit, and inability to generate sufficient cash flow to meet its obligations and sustain its operations raise substantial doubt about its ability to continue as a going concern," auditors for the accounting firm Deloitte & Touche LLP wrote in the report.

In pre-market trading, GM shares fell 18 percent from Wednesday's close, to $1.80. GM has received $13.4 billion in federal loans as it tries to survive the worst auto sales climate in 27 years. It is seeking a total of $30 billion from the government. During the past three years it has piled up $82 billion in losses, including $30.9 billion in 2008.

Damn, I seem to recall saying four months ago that the Auto Bailout was nothing but a band-aid delaying the inevitable.

GM wants a total of $30 Billion to further stop the bleeding?

Pretty damn expensive band-aid.

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