Thursday, November 13, 2008
Bailout = Loan
Remember, the potential GM bailout is actually a loan, not a handout. Yes, it's coming from our tax dollars, but with the understanding that it will be paid back over time. Now for this to actually happen the payback structure would have to be so tightly engineered that the company would be able to handle the ongoing future payments and still stay afloat. A major restructuring of the company will be needed anyway from preventing it from tanking, which means many will lose their jobs regardless (not nearly as many as if it tanked tho). If GM goes bankrupt AFTER the bailout, then we are doubly screwed. That being said it's all or nothing here...
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