Thanks Fed! After Wasting $14 Billion On Stock Buybacks, GM Commences Wasting Workers & Plants

But saving money is going to cost a ton: $3.0 billion to $3.8 billion, GM said. This includes “up to $1.8 billion” asset write-downs and pension charges; and “up to $2.0 billion in employee-related and other cash-based expenses.”

This money has to be borrowed, obviously: It “expects to fund the restructuring costs through a new credit facility,” GM said. The money has to be borrowed because GM blew, wasted, and annihilated $13.9 billion in cash on share buybacks over the past four years (data via YCharts):

 

 

https://wolfstreet.com/2018/11/26/gm-after-14-bn-share-buybacks-prepares-for-carmageddon-shift-to-evs-cuts-workers-closes-8-plants/

 

David Stockman's Contra Corner is the only place where mainstream delusions and cant about the Warfare State, the Bailout State, Bubble Finance and Beltway Banditry are ripped, refuted and rebuked. Subscribe now to receive David Stockman’s latest posts by email each day as well as his model portfolio, Lee Adler’s Daily Data Dive and David’s personally curated insights and analysis from leading contrarian thinkers.