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There are plenty of investors who believe dumping your money into a stable company like GM would be better than speculative startups like Tesla or Rivian...isn'
by nexuist 5y ago
There are plenty of investors who believe dumping your money into a stable company like GM would be better than speculative startups like Tesla or Rivian...isn't this typical risk-averse advice? The status quo is that GM is a good investment. They're probably not going bankrupt tomorrow.
- throw0101a 5y ago> The status quo is that GM is a good investment. They're probably not going bankrupt tomorrow. Well: * https://en.wikipedia.org/wiki/General_Motors_Chapter_11_reorganization https://en.wikipedia.org/wiki/General_Motors_Chapter_11_reor... * https://www.reuters.com/article/us-autos-gm-treasury-idUSBREA3T0MR20140430 https://www.reuters.com/article/us-autos-gm-treasury-idUSBRE... * https://www.cbc.ca/news/politics/loans-canada-account-finance-auto-sector-bailout-2009-gm-chrysler-1.4722529 https://www.cbc.ca/news/politics/loans-canada-account-financ...
- nexuist 5y agoI guess I'll rephrase and say that they're probably not ending tomorrow, because of the historical precedent the Fed set when they bailed them out. What's a few hundred billion dollars between friends?
- throw0101a 5y agoThe Fed did not bail them, Congress did. As did the Canadian government (and not the Bank of Canada). Politicians decided that GM going bankrupt would be too disruptive, especially since it occurred during the already turmoil-filled 2008-2009 timeframe.
- SilasX 5y agoTechnically, the -2008 General Motors doesn't legally exist anymore, all the assets (including brand) were transferred to the restructured org.