America’s twin economic “generals” are both in very deep trouble.
General Electric was founded in 1892, and it was once one of the most powerful corporations on the entire planet. But now it is drowning in so much debt that it may be forced into bankruptcy.
General Motors was founded in 1908, and at one time it was the largest automaker that the world had ever seen. But now it is closing a bunch of factories and laying off approximately 14,000 workers as it anticipates disappointing sales and a slowing economy.
If the U.S. economy really was “booming”, both of these companies would probably be thriving. But as you will see below, both of them have been victimized by the exact same Ponzi scheme, and both firms are sending us very clear signals that the U.S. economy is heading for troubled waters.
Whenever you hear the word “restructuring”, that is always a sign that things are not going well for a company.
And it turns out that GM’s “restructuring” is actually going to cost the firm 3.8 billion dollars…
General Motors said Monday it plans to effectively halt production at a number of plants in the U.S. and Canada next year and cut more than 14,000 jobs in a massive restructuring that will cost up to $3.8 billion.
Of course GM doesn’t have 3.8 billion dollars just lying around, and so they are actually going to have to borrow money in order to close these plants and lay off these workers.
Needless to say, President Trump is not very happy with General Motors right now…
Trump said he spoke Monday with GM’s CEO, Mary Barra, and ‘I told them, “you’re playing around with the wrong person”.’
He told reporters as he left the White House for a pair of political rallies in Mississippi that the United States ‘has done a lot for General Motors. They better get back to Ohio, and soon.’
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12 comments:
Board members pay CEO's way to much for their poor performance and only the average Joe stockholder gets screwed.
GM had their debt erased and a big loan from the U.S. government 10 years ago and here we are again.
Albert Einstein: The definition of insanity is doing the same thing over and over and expecting different results.
I hate to see all those people laid off but the automotive industry is changing and there is something positive to be said about GM trying to adapt for the future instead of running their business into the ground and getting bailed out by the taxpayers like last time.
Ford makes few cars, they never took the tax payer bailout money, they swiched to more popular SUV's and more trucks.
The person who wrote this article is clearly someone special and I meant that in the most Heinous way... Clearly, people can't afford anything when the gov'ts first reaction is to tax everyone more and more each year, where do you think we will find money to spend on your bull shit to keep the economy going???? Furthermore, people are buying more and more SUV's becasue they are cheaper and gas is still relatively cheap, 3 bucks a gallon versus 5 bucks... Also, who would have thunk that GM would suffer from the fact that they themselves admitted to knowing ignition problems for over 10 years plus but refused to do anything about it, until people started to get hurt and even cause death... That is why your POS GM company is failing, not becasue the economy is hurting...
Also, how do you know these companies are not telling you false tails to get tax payer money bailouts??? Ford went bankrupt, borrowed money, and now is thriving and even paid it all back, so what is different about ford versus GM, here ends your lesson...
4:095 I think you need to recheck your facts and history, becasue FORD did take bail out money, and even paid it all back...
All: if you think this is the end of it you are wrong, the reason for all of this is robots... soon this will happen to the food or restaurant industry as well, once robots start taking over that industry... Same thing for taxis, what are they going to do when self driving cars are in full swing??? I don't understand why you people are so dam stupid and why you keep yourself inside a box... think outside the box, you need to so you can understand the implications, good or bad with all of this new technology... sure it might make something faster in your life, and make you more stupid or lazy, but you never think about the jobs market with this stuff or anything else...
No bailing out gm
Look - it's a much bigger problem than anyone wants to admit to. Fact is - it is virtually impossible for any business to flourish in the US anymore. With all of the regulations - (State, Federal, Local, Environmental, Pensions, Taxes, etc) makes it virtually impossible for any business to make it. Sears is gone, Kmart is gone, GM almost gone, Ford - on its way out, GE - almost out, thousands upon thousands of businesses have exodus our Country. And just wait and see, Tesla will have to close to. It's the nations overall infrastructure that makes it nearly impossible for any business to make it.
Home Depot's CEO said it most eloquently - that under today's standards, they (meaning HD) could have never made it as a newly launched business entity.
So when buggy whips became obsolete the government didn’t bail them out. Piss poor management is the problem. Especially when they rape the company to feather their own pockets. Let em fail and make those who profited handsomely give it all back. Maybe then the ceo’s Will start making better long term decisions. This is was about propping up stock price in the short term. Not what’s best for the long term health of a company and their workers. How’s those unions working out for you? Companies that treat their workers poorly get unions.
If you are talking about laws today hindering big business you are totally wrong. Obama wrote all those regutlations remember he stated I have a pen - I don't need Congress. Now that Trump is in office big business is doing well and small business except for those you did not keep up with the changing times. GM needs to change its name and start over without taxpayers help.
The demise release drove up stock 6 % and CEO's where dropping it like hot coals. Like GE when they stopped making quality product and got into loan and financing they screwed themselves.
GM & GE Were Both Victimized By The Same thing....STUPIDITY!!!!
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