Free-market icon (Icahn) says U.S. must bail out GM

mjd1001 · 11-15-2008, 12:09 PM

Billionaire activist investor Carl Icahn doesn’t like big government—except now, that is.

Speaking at a small gathering of hedge funds and attorneys last night, Mr. Icahn said that federal funds should be used to bail out automakers, specifically General Motors, which he said has been crippled by exorbitant union contracts and even more wasteful management.

“Now I’m not a union guy…[but] it’s up to this company to really cut the hell out of costs. And they try and try, but they can’t. They have too many layers of bureaucracy,” he said, noting also that executive compensation at the company was too high. “I mean, God knows how many airplanes they have.”

full article here: http://www.financialweek.com/apps/pb...811139979/1036

PAULSTS1 · 11-15-2008, 12:24 PM

From what I just read, he indicated that re-inventing GM would be impossible, So why is he in favor of a bailout? Is that a man who believes in tossing money into a fire, or is he thinking about buying millions of penny shares and raking in a fortune?

Somethings smelling, and it ain't in Denmark!

johnny smallblock · 11-17-2008, 01:21 PM

I think he's saying that GM has a lot of systemic problems, many of their own making, but we have to save them for the sake of the overall economy.

How many people have to stand up for GM before Bush & Co do something to help them?

Gm_Tooler · 11-17-2008, 01:34 PM

Quote:

Originally Posted by johnny smallblock

I think he's saying that GM has a lot of systemic problems, many of their own making, but we have to save them for the sake of the overall economy.

How many people have to stand up for GM before Bush & Co do something to help them?

No amount of experts in support of or otherwise seems likely to make a difference. This is a political fight. Unions against the GOP. These socialists against.....well.....those socialists.

**ChevroletRevived** · 11-21-2008, 08:30 PM

GM just needs to become much, much leaner and hopefully conditions of such (like removal of the Jobs Bank) will be attatched to any government bailout of the Big 3 companies. In the long run, this could be a benefit to the health of the entire industry if done correctly.

11-15-2008, 12:09 PM	#1 (permalink)
mjd1001 4.4 Liter Supercharged Northstar Join Date: Apr 2003 Location: Daytona Beach, FL and Upstate NY Drives: 2008 Saturn Vue Redline Posts: 2,872	Free-market icon (Icahn) says U.S. must bail out GM Billionaire activist investor Carl Icahn doesn’t like big government—except now, that is. Speaking at a small gathering of hedge funds and attorneys last night, Mr. Icahn said that federal funds should be used to bail out automakers, specifically General Motors, which he said has been crippled by exorbitant union contracts and even more wasteful management. “Now I’m not a union guy…[but] it’s up to this company to really cut the hell out of costs. And they try and try, but they can’t. They have too many layers of bureaucracy,” he said, noting also that executive compensation at the company was too high. “I mean, God knows how many airplanes they have.” full article here: http://www.financialweek.com/apps/pb...811139979/1036

11-15-2008, 12:24 PM	#2 (permalink)
PAULSTS1 6.0 Liter L76 V8 Join Date: Apr 2006 Location: Belmont Hgts., CA Drives: 98 Cadillac STS 09 Avalanche/CLS (Bus) Posts: 2,336	Re: Free-market icon (Icahn) says U.S. must bail out GM From what I just read, he indicated that re-inventing GM would be impossible, So why is he in favor of a bailout? Is that a man who believes in tossing money into a fire, or is he thinking about buying millions of penny shares and raking in a fortune? Somethings smelling, and it ain't in Denmark! __________________ Favorite Movie: Anything in Blu-Ray --"Pirates of the Caribbean" in 7.1 Dolby Sound

11-21-2008, 08:30 PM	#5 (permalink)
ChevroletRevived GMI Staff Member Join Date: Jul 2004 Location: The Good Ol United States of America Posts: 9,078	Re: Free-market icon (Icahn) says U.S. must bail out GM GM just needs to become much, much leaner and hopefully conditions of such (like removal of the Jobs Bank) will be attatched to any government bailout of the Big 3 companies. In the long run, this could be a benefit to the health of the entire industry if done correctly. __________________ GMI's Revitalization in Action Director Check out our latest lineup by Clicking Here If you've got inside news and would like to be a GMInsider, send me a private message or email me HERE.

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