Monday, February 16, 2009

News Flash! GM Gets $4 Billion Early

ABC News reported
this evening that President Obama authorized an immediate $4 billion in federal funds to General Motors. This is before GM's viability plan was even submitted.

The money, to be released to GM tomorrow is designed to keep GM alive long enough for the government to review the company's viability plan. Implicitly, GM's negative cash flow is much greater than the $1.5 billion per month that was reported in late 2008, likely $3-4 billion per month.

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