Originally Posted by Hazdaz
You don't understand that in bankruptcy, the people that are owed money by GM will receive pennies on the dollar... GM's suppliers can NOT survive like that. They are already in a huge bind as it is. It's not just the bankruptcy of GM... that would cause all these other supplies to follow suit. If those suppliers go, then other automakers will be greatly effected also. Again, domino effect.
Oh yea, and no one is expecting for GM to keep all it's employees - but laying off XX,XXX number of people to keep X,XXX,XXX employed is what it's gonna take.
You are right about the suppliers being the ones who will be the most effective, but I don't think it will equal out. If this money keeps GM running till March, then maybe it only helps the suppliers till the end of January and then they are back to where they were. I wish there was a real auto industry bail out where the suppliers were given the money and the manufacturers went into a controlled bankruptcy. Problem is it would take too much time/intelligence for the government to manage that. Regardless, I think they will be slashing jobs and divisions right away.