General Motors Corp.'s last-ditch, Hail Mary bid to avoid bankruptcy fell with a thud Wednesday as its bondholders overwhelmingly rejected a deal to swap their debt for equity in the company.Let's face it. This is not a Keynesian approach. This is not even Orwellian. This is a clueless libertarian shoveling our money into gross failures of a system in which we unwillingly become the owners of poorly regulated, poorly managed enterprises. In short: We don't like Keynesian style control when we're making buckets of money, but when we fuck up.... well Keynes is way cool!
That offer was a central element in the automaker's efforts -- guided by the federal government -- to restructure outside of court. Without it the company appears almost certain to file a Chapter 11 petition by Monday.
General Motors Corp.'s bid to have its bondholders exchange their holdings for company stock failed to attract enough support, the company said Wednesday, making a bankruptcy filing all the more likely.And this... is a Harper sycophant desperately grasping at a falacy in defence of his Dear Leader.
The failure of the debt-for-equity plan means the U.S. government could wind up with more than the 50-per-cent stake that was originally envisioned. The U.S. government's stake could now grow to 69 per cent.
The government of Canada is also in line to get a small equity stake in GM in return for lending the company money.
"Profound ignorance of industrial economics"? Give us all another fucking lesson, Charlie.
I'm sure it will be just, like, totally awesome.
Hat tip CC.