End of the line?

It sure looks like GM may go down the tubes.
Their burn rate of available cash may not last until Obama takes office.

According to some analysts, Chapter 11, which keeps the creditors and 
suppliers off their backs while they reorganize really isn't an option. 
Who 
would buy a car from a company in bankruptcy?  Furthermore,  consumers
have 
pulled in their horns in terms of buying big ticket items in general with 
concern of continued employment.

There's a 25 billion dollar government "loan" available to the auto
industry 
in general that is intended to help them finance the development of new, 
high efficiency vehicles.  Bush has recommended expediting the release of 
funds associated with this loan, but is against a further "bailout" using 
funds from the recent 700 billion TARP plan.

GM's burn rate is 3.1 million per  *hour*  and as of the end of September,

they had about 16 billion in cash.


Personally, I have very mixed feelings about this.  A while back GM
dropped 
the Oldsmobile line due to poor sales and to cut costs.  They also hinted 
that another line .... either Buick or Pontiac ....  would be on the 
chopping block in the future if their financial situation didn't change. 
That was a couple of years ago and nothing has been done.

Although it would be disastrous for the employees and suppliers for GM to 
fold,  I also can't see why the taxpayers should spend good money after
bad. 
The only way I personally could sup****t a general bailout would be if it 
were tied to a very specific and aggressive business plan laid out by GM 
that would cut costs, simplify operations and overhead and otherwise
provide 
believable proof that the bailout money would not simply extend their 
existence for a while longer while business goes on as usual.  GM had the 
op****tunity to address their problems and have done very little to save 
themselves.  Their problems did not originate with September's market 
meltdown.

The other problem with bailing GM out is that it sets a precedent to
justify 
the bailout of any company experiencing financial problems.  How do you
save 
a job here, but let an equally im****tant job to someone else in another 
company dissolve?

Eisboch