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Careful with that stick, D.C.

Posted on April 20, 2009 11:00 AM
The White House automotive task force, now in firm control of most every decision relating to the future of General Motors Corp., will likely see that power diminished if it follows through on its threat to send the troubled automaker into bankruptcy.

General Motors since December has been technically insolvent, relying on more than $13 billion in government loans to avoid a Chapter 11 filing. But that largess will end by June 1, the task force has warned, unless the automaker can secure draconian cuts from its bondholders, unions and dealers.

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