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Obama: GM Restructuring Plan 'Full of Promise'

By Peter Whoriskey, Kendra Marr and William Branigin
General Motors filed for bankruptcy protection this morning in a move that President Obama said was necessary to restore the auto manufacturing giant to competitiveness and help ensure the survival of the domestic auto industry.

In a speech at the White House hours after GM filed for Chapter 11 bankruptcy protection in New York, Obama hailed GM's plan to emerge from its current woes as "credible" and "full of promise." But he also sought to reassure Americans skeptical about the plan's provisions to transfer a 60 percent ownership stake in the company to the U.S. government in return for an additional investment of about $30 billion during and after the bankruptcy process. The new infusion of cash will bring the total U.S. commitment to GM to about $50 billion.

"We are acting as reluctant shareholders, because that is the only way to help GM succeed," Obama said. "What we are not doing -- what I have no interest in doing -- is running GM."

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Posted at 1:57 PM ET on Jun 1, 2009  | Category:  Economy
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Obama is adding a whole new level of risk to investments – political risk. With GM and Chrysler as examples of overzealous government intrusion. Those encumbered with legacy liabilities, can expect to encounter serious difficulties raising capital in the foreseeable future.

http://pacificgatepost.blogspot.com/2009/05/obamas-not-so-private-economic.html

In the meantime Wall Street will continue to be bailed, make billions, replenish its coffers, and taxpayers won’t know the hows, whens or whats.

Posted by: JamesRaider | June 2, 2009 1:22 AM

What the auto companies want is for government to expenditure its loses. The last I looked it was one of the 5th largest businesses in this country. Not a government agency, if it had of taken note in the 80's when the foreign car market became increasingly more economic there would be more competition, the major problem plaguing the auto industry. We as americans will not stop buying american made cars, but with families becoming increasingly smaller the need for three big auto manufactures are gone, GM is the largest and should be saved but the others should revise how they compete for that valued foreign market, obviously the president must not be that impressed.

Posted by: edtroyhampton | June 1, 2009 4:53 PM

GM might have remained viable if we had single payer health care for all. They would haved saved thousands per employee per year, and average Americans would have had more disposable income to buy cars. www.pnhp.org

Posted by: rooster54 | June 1, 2009 4:06 PM

What O'Bomba-Nation should be doing instead of trying to play Auto-Czar;

is listening to good advice:

http://blog.heritage.org/2009/06/01/text-of-romneys-speech-the-care-of-freedom/

But, THAT would just be throwing Good Advice after Bad! ;~)

Nero Fiddles...

Posted by: SAINT---The | June 1, 2009 3:16 PM

Is this good money thrown after bad money?

http://www.youpolls.com/details.asp?pid=5408


.

Posted by: usadblake | June 1, 2009 2:24 PM

""We are acting as reluctant shareholders, because that is the only way to help GM succeed," Obama said. "What we are not doing -- what I have no interest in doing -- is running GM.""

Well, since it is EXACTLY what he is doing-Badly!;

I suspect he misread his precious teleprompter.

He MUST have meant RUINING!

While stealing from Private investors' SECURED Bonds, and giving the company to the very Union that destroyed it!

Posted by: SAINT---The | June 1, 2009 2:21 PM

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