Diary

Obama is saving us $70B with GM

According to this Reuter’s article yesterday, GM may demand $30B in aid.

General Motors Corp (NYSE:GM – News) said on Tuesday it could need a total of up to $30 billion in U.S. government aid — more than doubling its original aid — and would run out of cash as soon as March without new federal funding.

But not to worry, Obama has told us we “can’t afford to let GM go bankrupt” which is a good thing, since GM says that would cost us $100B.

GM said its own analysis of the costs and risks of a bankruptcy filing would require more than $100 billion in financing that could have to be provided by the U.S. government.

So voila!!! We are saving $70B when we pay GM $30B! Could it be any simpler folks?

Sure a couple of months ago they said they wouldn’t need more than $18B, but I bet we weren’t going to save as much if we only gave them $18B instead of $30B. And sure they promised to have a plan by yesterday and it consists mainly of “we’ll have a plan by the end of March” since they are getting no cooperation from the UAW or bondholders. But c’mon people, how can we pass up a chance to save $70B?!?!?