F150 Man

I am willing to put a pin my thoughts regarding this, let's check back in the fourth quarter and see where we stand. Of course, it might not necessary since we could be hit by a meteor, wiping out life as we know it here on Earth. Everything is a possibility! Let's talk probability.

Why would you believe the cash burn is going to be less in 2009? I would say we are off to a very dismal start.

Can you say, "Bullshit"? Make no mistake, we are ALL on thin ice, once we break through, there will be many who will not survive. Most of you 'chapter 11' supporters don't have any skin in the game. I have been in the business for 32 years and stand to lose a significant piece. I can understand why those on the sidelines have no concern for those in the fight, but remember on thing: It was many previous generations that paved the way for you new comers. I will survive; however, you might be well advised to think ahead about your golden years and retirement. You can pick up the pieces, but you can't put it back together.

I bet as a kid, GWB enjoyed pulling the wings off flies... Now he is simply using his signature "water-board" technique on GM & Chrysler to inflict a huge amount of pain and suffering. Its anybodies guess about the purpose of the end game. To suggest an orderly bankruptcy at this point, after the weeks of industry testimony and feedback from experts, reflects a lack of understanding and rational thinking. His banking buddies all got a free pass when it came to bailouts, without any real investigation as to what really happened or why they were required. I hope every Republican reader makes a sound financial accounting of what this administration has cost them personally for the past eight years.

I would suggest you read some old automotive history, specifically, Chrysler circa 1975. Back then, Chrysler was run by two finance types: Lynn Townsend & John Ricardo. Like today with falling sales GM and Ford both cut production schedules, except for Chrysler. They naively held to the belief that their unsold vehicles where asset items, which is true and where they are carried on the balance sheet. However, they seemed to forget the related niggling liabilities - namely "accounts payable" and "overhead expenses". While parts are parts, suppliers generally like to be paid for deliveries in 90 days. After every parking lot was filled with unsold vehicles; the company eventually ran out of cash. If fact they had to lay off virtually all employees from the Thanksgiving break 1974 until April 1, 1975 because they could not meet the payroll (another minor liability). I didn't read this history, I experienced it first hand and while the numbers are bigger today; it sure feels like 1974 all over again.

Not true... it's still in the Dearborn pipeline for 2010. The 6.2L was dropped, but it will be available with 5.4L It rocks!

Jim Cramer said last night on his show, that it's too late for a bailout (bridge loan). That the industry must reorganize in chapter 11, and Chrysler might not make it out the other side. Now before the flames fly, I know Cramer is to put it mildly a bit eccentric (idiot savant), however, he has a keen directional sense of where things are going. I believe the industry can indeed pour $25B down the 'hole', without anything backing up. We are beyond surgery; an amputation might save the patent.

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I would take exception, the car that almost sunk the brand: http://www.mustangii.net/1974_commercial.asp

Double Bull.. What company would buy or has the conjonas to buy something as big and dated as GM?? Simply buying the company, would not absolve their billions of outstanding debt... there is a long list of first claim creditors that would pick the carcass clean of any significant assets. Ever wonder what happened to all those little towns along Route 66 on the way to California? While it orginated in Chicago, the point is.. they were bypassed by a more progressive form of travel.... Interstate Highways. Same here, a more progressive transportation solution will prevail.

Don't worry Nancy is coming to town with a big check book.... 13M jobs is too big of economic failure, maybe bigger than AIG. Your just watching a big game of poker play out. However, I would not buy any stock at this point. I bought in at $3.50 and will bust before the hand is over. The GOVERNMENT will eventually be the winner, shareholders losers. They will hold warrants which take precedence over common stock. Also, remember we have mortgaged the next 10 year earnings... No pie for the common share holder.

http://biz.yahoo.com/ap/081112/auto_bailout.html?.v=9 Hank takes tough love to a new level. First he begs for $700B (literally goes down on one knee and virtually kisses Nancy's ring). Now that he HIS the cash, he's not spending it in the way in which it was voted upon by Congress. Instead it going DIRECTLY to his 'friendly' bankers. Then come the poor beleaguered autos to beg for some small scrap of the pie, and their told #$^& off! Tough love.

Always looking at the upside... the downside is that we need $10B to keep the lights on for any given day (cash required on hand to keep the checks from bouncing), and the $19 divided by the accelerated burn rate ($2.5B/month) will last about 8 months.... While we may be in better shape the GM, it still means we NEED help from Washington to stay afloat for the entire year of 2009.

What else would a broke man tell you when asked such a dumb question? Yea, we expect to go chapter 11 next year... why that's akin to trying to put the fire out with gasoline. Alan is a pretty sharp CEO and will do everything possible to keep things upright.