Wednesday, April 22, 2009
GM to Default on Its Debt [Stephen Spruiell]
So says the WSJ. Just yesterday it was reported that the Obama administration had approved the company for $5 billion in additional loans. I wonder if the check already cleared.
Update: Link now goes to the story. The government will hold GM's hand through the bankruptcy proceedings. Why couldn't we have done this in December? What did taxpayers get for the $13.4 billion we invested in the company?
Update II: An economist e-mails:
The White House will not be surprised by this. In fact, the White House is behind it. This is what it means when a company is encouraged to “ask bondholders to make sacrifices” to ease the pain for union members.
04/22 01:14 PM
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