Its now official: Once GM goes bankrupt its Government Motors

Are you surprised? I’m not. Now its confirmed. Once GM files for bankruptcy probably sometime in June, the US government will buy GM. More from the Reuters article:

General Motors Corp’s (GM.N) plan for a bankruptcy filing involves a quick sale of the company’s healthy assets to a new company initially owned by the U.S. government, a source familiar with the situation said on Tuesday.The source, who would not be named because he was not cleared to speak with the media, did not specify a purchase price. The new company is expected to honor the claims of secured lenders, possibly in full, according to the source.

The remaining assets of GM would stay in bankruptcy protection to satisfy other outstanding claims.

This picture by Doug Powers with h/t to Michelle Malkin is looking more and more accurate isn’t it?

And maybe the worst part of the whole situtation:

In addition, the government would extend a credit line to the new company and forgive the bulk of the $15.4 billion in emergency loans that the U.S. has already provided to GM, the source said.

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May 19, 2009 · Filed Under General Politics, muslims


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