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In Four More Years We'll Be Detroit

scott s. Wrote: Nov 17, 2012 4:23 PM
I think GM went into "regular bankruptcy"? As far as foreign car makers, don't forget that Mercedes (Daimler-Benz) bought Chrysler and ran it into the ground. They then sold it to a private equity company (Cerberus Capital Mgt) who brought in Nardelli from Home Depot as a turn around and failed. Also Bush bailed out all the "big 3" in December 2008 with loans from TARP funds. GM did in fact go into chapter 11 bankruptcy and was reorganized, not liquidated. (Liabilities transferred to "Liquidation Motors" and New GM and Ally Bank spun off.) GM's current problems are due to heavy exposure to Europe.

From one moment to the next the city of Detroit doesn’t know where its next bailout is coming from. Chronically unable to pay its bills, the city looks to the state for cash gifts to stave off default. Operating under the terms of a consent agreement hammered out with the state, Detroit faces fiscal uncertainty largely because it has failed to get adequate concessions from public employee unions that are unsustainable. And those concessions that they have wrested from unions, politicians in Detroit have been unwilling to enforce.     

One prominent Detroit attorney, however, is facing the future of the Motor...

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