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View Diary: The Swan is still Black, and We're Still Screwed (212 comments)

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  •  Whether it is an reorganization (4+ / 0-)

    or liquidation bankruptcy will matter.

    And I honestly think that unless the Obama administration holds hands through the process like it did with GM that the latter is a possibility.

    GM was nearly forced into liquidation, but the administration was able to stop that from happening.

    CIT's assets are a lot more liquid, and would be easier to move. As far as GE and GMAC, GE is loaded with non-performing commercial real estate loans.

    Everything is not well, and wishing it so, will not make it so.

    by ManfromMiddletown on Sat Jul 18, 2009 at 09:35:37 AM PDT

    [ Parent ]

    •  GM is different than CIT (2+ / 0-)
      Recommended by:
      3goldens, yellow dog in NJ

      GM does not have a business model that generates free cash flow. GM is a black hole that will continue to bleed money until it is put out of its misery.  The sooner GM is put into liquidation the better for the taxpayer.

      CIT has a lot of free cash flow.  That's why they will not be liquidated.

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