General Motors Finally Declares Bankruptcy

The time has finally come, GM looks to follow Chrysler with quick bankruptcy trip:

The automaker aims to make a swift trip through bankruptcy by cobbling together its stronger assets to create a new more viable company. If all goes as planned, GM would emerge from bankruptcy within three months.

Previously, the idea that one of the biggest and most complex bankruptcies in corporate history could be completed in such a short time was considered impossible as stakeholders bickered about who gets what.

There was never another option for GM than an eventual bankruptcy. I wrote about this before.

December 18th 2009:

Did you ever take a look at GM’s financials? The company is worth minus $60 billion. In a time like this you are asking taxpayers to sacrifice their hard earned dollars and throw them at a business that is worth LESS THAN NOTHING.

(…)

Let’s not again prolong the agony of a necessary correction by trying to keep prices up and failing businesses going, like we did in 1929 and 1930. Let’s help the big 3 become efficient by allowing the consumers to decide what is to happen. Let their owners go through Chapter 11 if necessary. Let the good pieces be turned into efficient and successful businesses and the useless parts be released for more useful occupations so the American car industry can once again be a force in the world rather than a caboose.

November 21st 2008:

As far as GM and Ford, they don’t deserve any more mention. These two giant jokes cannot possibly be called business operations. It is insulting to see the media seriously pose the question as to whether or not the taxpayer should even consider sparing his change for these miserable failures. It hurts to see their executive junkies squander more money on private jets to capitol hill in order to petition for yet another bailout fix. They, along with the UAW, need to be wiped off the face of the earth once and for all and stop making the American car industry the ridicule of the world.

Nancy Pelosi said in December 08:

U.S. House Speaker Nancy Pelosi said she believes either Congress or the Bush administration will step in to aid domestic automakers because bankruptcy is “not an option.”

“I believe that an intervention will happen,” Pelosi said at a briefing in Washington. “Everybody is disadvantaged by bankruptcy, including our economy, so that’s not an option.”

Unsurprisingly, she was wrong. In fact, bankruptcy was the only option. All arguments we heard over these past months in favor or more and more bailouts were wrong. It is important to point this out because even now the people who were wrong on every single thing they said, continue to spread their nonsense publicily.


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