[A-List] SIMPLY STAGGERING: GM took an $8.6 billion loss for 2005
michael.hudson at earthlink.net
Sat Jan 28 18:05:58 MST 2006
Looks rather like the CREDITORS need to have GM and Ford nationalized to
socialize the losses and repay them.
On 1/28/06 9:57 AM, "Charles Brown" <cbrown at michiganlegal.org> wrote:
> * From: "Henry C.K. Liu"
> More staggering is GM dividend payout of $2 which comes to 8.45% yield
> on day of market share price. The payout amounts to $1.1 billion. With a
> cash reserve of $19.2 billion and a bank credit line of $5.6 billion,
> and effectively shut out of the commercial paper market, and estimates
> of $1.5 billion negative cashflow in case of a strike, GM will be
> insolvent in about 13 weeks. Benefit obligations to ex-GM workers who
> transferred to bankrupt Delphi lies in the range of $3.6 billion to $12
> billion, With numbers like that can bankruptcy be far behind, even if
> the government bails out the pension obligations?
> CB; Looks like we need to nationalize GM and Ford.
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