New memoir reveals how close GM was to collapse

[SVT666]

New memoir reveals how close GM was to collapse
02/01/2010, 7:10 PM
BY DREW JOHNSON


General Motors? financial situation nearly ruined the company in late 2008, but an emergency bailout loan from the United States government ultimately saved the Detroit automaker. However, a new report reveals how close GM actually came to liquidation bankruptcy.

According to a new memoir published today by Business Plus, former Treasury Secretary Henry Paulson refused to meet with General Motors on several different occasions. Moreover, Paulson failed to believe that General Motors was on the verge of collapse.

According to Paulson?s accounts, former GM Rick Wagoner called several times requesting a meeting with the former Treasury Secretary. Paulson refused, insisting the Troubled Asset Relief Program should not be used to support automakers. However, Wagoner was adamant that GM would go into liquidation without $10 billion in aid by November 2008.

?He and his team may have sincerely believed this, but I knew better,? Paulson wrote. ?I worked with companies like GM long enough to know that they did not die quickly.?

As the history books show, Paulson ? along with House Speaker Nancy Pelosi ? eventually acquiesced with GM?s request, granting a total of $17.4 billion in bailout funds to GM and Chrysler. ?It was politically impossible to rescue Citi and not help the automakers,? Pelosi told Paulson.

Paulson?s story represents just one of the many hidden within the GM-Chrysler saga. A full recap of the auto bailout is expected later this year.

[AutobahnSHO]

The sensation of the headline is almost debunked by the quotes.   

[Morris Minor]

New memoir reveals how close GM was to collapse
02/01/2010, 7:10 PM
BY DREW JOHNSON

... but an emergency bailout loan from the United States government ultimately saved the Detroit automaker.

"Ultimately saved?" Oh really..., what a cretinous thing to say. Who is this new genius in the field of long-term historical and economic perspective?

Your average special needs highschooler would be able to tell us that it's about ten years too early to be making a pronouncement like that.

[3.0L V6]

"Ultimately saved?" Oh really..., what a cretinous thing to say. Who is this new genius in the field of long-term historical and economic perspective?

Your average special needs highschooler would be able to tell us that it's about ten years too early to be making a pronouncement like that.

Well...yeah. GM can be permanently saved, cause it's mostly owned by the taxpayer now. Now it can never fail! Yay!

Oh...wait a sec....