GM Bailout: November 18th, 2008
November 18, 2008 – 10:48 pmWashington has made some very questionable decisions this year, but not bailing out GM would be a catastrophic mistake. I stated in the past I would have liked to have seen GM file for restructuring bankruptcy, but if you want to talk about accelerated unemployment and ultimate fear is equity markets, that would be the result of a large automaker defaulting. To put this into perspective folks, every job at GM accounts for approximately 8000-10000 jobs worldwide. According to Standard and Poors, GM currently has 266,000 employees worldwide. Do the math. Granted not everyone would lose their job unless chapter 7 bankruptcy is filed, but I will guarantee you a whole hell of a lot of people will be layed off in a chapter 11.
