Are GM’s and GE’s troubles unique to those companies, or are there indicating trouble for the US economy? From Michael Snyder at theeconomiccollapseblog.com:
America’s twin economic “generals” are both in very deep trouble. General Electric was founded in 1892, and it was once one of the most powerful corporations on the entire planet. But now it is drowning in so much debt that it may be forced into bankruptcy. General Motors was founded in 1908, and at one time it was the largest automaker that the world had ever seen. But now it is closing a bunch of factories and laying off approximately 14,000 workers as it anticipates disappointing sales and a slowing economy. If the U.S. economy really was “booming”, both of these companies would probably be thriving. But as you will see below, both of them have been victimized by the exact same Ponzi scheme, and both firms are sending us very clear signals that the U.S. economy is heading for troubled waters.
Whenever you hear the word “restructuring”, that is always a sign that things are not going well for a company.
And it turns out that GM’s “restructuring” is actually going to cost the firm 3.8 billion dollars…
General Motors said Monday it plans to effectively halt production at a number of plants in the U.S. and Canada next year and cut more than 14,000 jobs in a massive restructuring that will cost up to $3.8 billion.
Of course GM doesn’t have 3.8 billion dollars just lying around, and so they are actually going to have to borrow money in order to close these plants and lay off these workers.