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Auto Bailout: The Government Puts GM Through A Stress Test Too

GM will get its $4 billion loan payment from the government today but the company is nowhere near being off the hook.

Bloomberg reports that GM must also present a progress plan to the U.S. Treasury tomorrow that shows progress in cutting labor, debt and other expenses to prove the automaker can restructure to become viable and repay the loans by the end of 2011. If GM doesn’t show progress, the loan terms allow the government to recall the money or force the automaker into a government-supported bankruptcy.

Now that sounds like a much more reasonable stress test to me than the bank bailout plan. Fair’s fair.  If you can’t survive then it’s reasonable to file for bankruptcy.  But effective nationalization…well that’s neither here nor there!

Image credit: Bloomberg

Written by Reenita Malhotra

Reenita Malhotra Hora is an Ayurveda clinician, entrepreneur, writer and mom. Her experience has ranged from running Ayoma, an Ayurveda business to running a natural health practice at San Francisco's California Pacific Medical Center.

Reenita is a published author of two books books about health and wellness: ‘Ayurveda - the Natural Medicine of India’ and
‘Inner Beauty’. She is also the Editor for Green Options Media's business blogs and a freelance writer for a variety of print and web publications.

In quieter moments, she likes to spend her time hiking, swimming the warm seas, cooking with the family or writing fantasy fiction adventure stories for kids from from 2 to 92.

Check out her wisdom at


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