Follow Barack Obama prior and during his tenure as the 44th President of the United States. Read about my personal observations along with every day facts as they happen. This blog will only submit factual information about the first black President, now in his 2nd term of office.


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President to announce GM bankruptcy on Monday morning - What does this mean?

Sunday, May 31, 2009

Written by editor James of  'Obama in the White House'

Tomorrow morning. President Obama will announce at a 11:30 a.m. press conference that General Motors will file for bankruptcy according to officials that are close to the talks. So what does that mean? GM will still be manufacturing cars and trucks, but they will be doing so under bankruptcy protection. Back in 2005, there were talks about GM filing for bankruptcy. So it's been a while now that GM has had problems. Back then, chairman and Chief Executive G. Richard Wagoner Jr. told 325,000 employees in an internal memo that filing for bankruptcy is "unnecessary". He claimed back then that filing for Chapter 11 was "contrary to the interests of our employees, stock and bondholders, dealers, and our suppliers and customers". It was reported that the Chief Executive said that bankruptcy was "unthinkable". So GM was in trouble 4 years ago, but failed to take the necessary steps to avoid bankruptcy protection, and now they have no choice than to file. Read the entire Businessweek report back in 2005 right here....   What if GM did go bankrupt?
What would a GM bankruptcy look like? No one would even think in their wildest of imaginations that Chrysler would also file. It will be one of the most massive Chapter 11 filing of all time -- a watershed moment in the history of American business, with far-reaching consequences for all of GM's stakeholders. While the direct impact on the national economy would be relatively modest, the Midwest would be hit hard by the combination of job losses at GM and its suppliers and benefits cuts for the company's retirees. If you are near retirement, the only think you might say is 'good luck'.
The coming week will be very eye-opening. GM filing is just part of the big picture developing around the president. You will hear allot of sad stories on your local and national news channels. 2009 will definitely be one of the worst years in economic history, and hopefully the plans of President Obama will work to start a recovery in the job market. In the mean time, people need protection. The bankruptcies in the North East, especially around Detroit, will skyrocket. Only time will tell. All we can do now is sit back and go for the ride.
Will the people affected in the north east vote for the same president in 2012? Unfortunately, many of these poor souls will blame President Obama for loosing their jobs, and will not vote for him. They will not recognize the fact that prior President George Bush should be held responsible. The statement just made is the opinion of the editor of this blog.  But on the other hand, if somehow Obama manages to get people back to work and turn GM back in the right direct so they can profit, then maybe he may have a chance to regain those votes from job stricken cities. 
People look at President Obamas record now in 2 ways. First, most people will tell you that President Obama has been very busy for only being in office for 4 months. He seems to have the energy to handle just about everything at once. But on one hand, people will tell you that he is destroying the nation, and other will tell you that he is saving it. One thing for sure, he is doing something. Our prior president, George Bush, was too complacent of a president for these bad economic times. He was looking at the world through a pinhole, devoting most of his time to terrorism and Iraq, not even recognizing the methods he used to get information from prisoners he considered terrorists is considered as torture, now outlawed by the current President Obama. Did President Bush ever once in his two terms in office show any sign that the economy was about to collapse until during the elections? I don't think so, but President Bush's timing on the announcement of the failing economy just before he left office just about destroyed John McCain's chances to win the election.
The republicans now have only to blame themselves for what we are facing now. It just so happens that President Obama will take the heat for things that happen to the U.S. citizens now, as the problems of the entire world are now on his shoulders, and likewise will accept the praise for everything that he does right.


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