GM Stepping Towards Bankruptcy

Steve Stack

The new head of GM, Fritz Henderson, has admitted there is a strong possibility of GM filing for bankruptcy come June. Due to their inability to come to terms with workers unions and bondholders, the company will not be able to come up with a plan to survive without government invention. President Obama gave GM until June 1st to come up with a very precise and detailed plan of action for the company to avoid entering bankruptcy. I see this as an important step for GM to succeed in surviving this economy. Without government intervention, I can hardly see the company developing a plan of action that was good for the company itself, shareholders, and employees, especially the laborers. Seeing President Obama stand behind the laborers and union workers that endorsed him is another thing I really am proud to see. It seems that all too often laborers and the working class men and women are looked over for the executives and shareholders and that is a sad occurance.

link: NY Times