I have been reading an interesting article about General Motors lately.
It seems that even after receiving $15.4 billion in federal loans, G.M. is once again on the brink of financial collapse.

What's more, Obama himself could be held responsible in a certain way.
By June 1, president Obama has to decide if the second restructuring plan is acceptable.
But it could be too late if he keeps waiting until the very last day of his own deadline.

Even after receiving $15.4 billion in loans, the financial problems of G.M. continue to deepen.
Apparently, G.M. is spending more than $113 million a day than it is taking in from sales of its vehicles around the world. So the company is getting closer to bankruptcy each day. Personally, I thought that president Obama would not allow G.M. to go bankrupt.
I assumed G.M. was just too big and too important, but what hope is there for a company that loses $113 million each day? According to analists like Brett D. Hoselton, the bankruptcy is looking like a real high probability.

Imagine the problems, imagine the chaos when one of the biggest companies in America stops to exist. Ten thousands Americans will lose their job directly. Ten thousands will follow for sure.
I fear that the consequences may even be harder then in the case of Lehman Brothers.
I realise it sounds harsh, but I think it is far more worse to lose your monthly revenue (without the possibilty to find one in the near future) then losing some money. Especially when you lost your savings earlier on.


Source: http://www.nytimes.com/2009/05/08/business/08auto.html?ref=economy