Friday, August 24, 2012

Should We Be Worried?

Reuters reports: The world's largest auto maker, General Motors Co, is in talks with lenders to double its line of credit currently worth $5 billion in a bid to consolidate its balance sheet and shrink its pension obligations, The Wall Street Journal said quoting unnamed sources.


  1. I heard an economist speaking earlier this week that GM is dangerously close to having to re-enter bankruptcy and that this time, the government will not be able to support them.

  2. Does "shrink its pension obligations" translate to "offer sufficiently attractive lump sum retirement-buyouts to high-wage-tier workers to get them to sign away their pensions"?

    If so, then yes, we should worry. Workers who stay employed continue to live around here, of course. Retirees who get their pensions a month at a time often continue to live around here. Folks who get large lump-sum buyouts often move somewhere else, and spend their money there.


Thanks for commenting. I moderate comments, so it may take a while for your comment to appear. You might enjoy my book about Flint called "Teardown: Memoir of a Vanishing City," a Michigan Notable Book for 2014 and a finalist for the 33rd Annual Northern California Book Award for Creative NonFiction. Filmmaker Michael Moore described Teardown as "a brilliant chronicle of the Mad Maxization of a once-great American city." More information about Teardown is available at