As a hardcore rightwinger – the alternative of not bailing out the auto industry is unthinkable. There are too many jobs dependent on them – plus think of the inflation in the auto industry once they are gone. Bankruptcy is possible for GM and Ford to emerge stronger – but it is a huge gamble.
I agree, chips. And look at the drop in the DOW. The Republicans are setting up the Democrats to look like heroes when they provide some aid to the auto companies and help to stabalize the economy or at least lessen the recession.
Chapter 11 would probably be the best bet. That way they can get out from under some of the crippling load they are under. The Judge can also replace executives if he feels thay have been the problem. Being in Chapter 11 is not the end necessarily. K Mart went into Chapter 11, sold off a few corporatae jets, got rid of the CEO and a few other adjustments and when they came out, the bought Sears. Granted Walmart is still killing them but they hang in there. American auto makers have too many high dollar union contracts they can not get out of. When factory floor workers are making 6 figures, something isn’t quite right. Or at least it isn’t equitable for GM and Ford. Update the product, update the contracts, and get on with making cars.
Once again, say it with us, the American auto industry is alive in well in parts not in Michigan. While it is lamentable that the employees’ unions and bosses made some horrible choices, that is what happens in a market economy. I refuse to allow my tax dollars to support ridiculous executive salary and pay someone $31 per hour to do crossword puzzles. Until companies’ bailouts force them to accept the federal pay scale, I will continue to encourage my senators and congress people to vote against any aid.
[blockquote]They pay good money to fly on bankrupt airlines.[/blockquote]
True Irenaeus, but they aren’t paying in excess of 20k to fly on that airline, and they aren’t expecting to service that 20k+ loan for 5 or more years to fly on that airline while wondering if the airline will still be in business at the end of the 5 year flight.
I would think that if the automakers went into bankruptcy that many buyers would shy away from them fearing that they would be stuck with loans on cars for which they couldn’t find parts as the suppliers and dealerships closed as the failure rippled through the economy.
Chapter 11 could be a wonderful opportunity for the Big Three automakers to rebuild their business models in a way competitive with foreign companies, who can successfully compete while manufacturing in the United States.
Unfortunately it won’t be. The new configuration in Washington will never do anything to anger their supporters in the auto unions, who are the other partner in this [i]pase doble[/i] to financial ruin.
I wonder if you will all be so gleeful when the larger effects of such decisions begin to be felt. Do you realize how many companies are laying off workers this morning already? Do you think none of this will ultimately affect you? That it’s just about “those people”?
For now, sanity reigns. Next January, with greater numbers in the Senate and House, the Dems will try to force-feed this t***burger to us again.
Stick a fork in them. GM is done. They won’t last til Obama is president.
Under the mercy,
[url=http://ad-orientem.blogspot.com/]John[/url]
An [url=http://www.youtube.com/watch?v=Gj4pUphDitA]Orthodox [/url] Christian
As a hardcore rightwinger – the alternative of not bailing out the auto industry is unthinkable. There are too many jobs dependent on them – plus think of the inflation in the auto industry once they are gone. Bankruptcy is possible for GM and Ford to emerge stronger – but it is a huge gamble.
Will folks buy a car from a bankrupt automaker? I would think that bankruptcy would taint the product and worsen the problem.
Why wouldn’t one buy a car from a bankrupt automaker? Many industries come out of a bankruptcy reorganization in a stronger position.
I agree, chips. And look at the drop in the DOW. The Republicans are setting up the Democrats to look like heroes when they provide some aid to the auto companies and help to stabalize the economy or at least lessen the recession.
Chapter 11 would probably be the best bet. That way they can get out from under some of the crippling load they are under. The Judge can also replace executives if he feels thay have been the problem. Being in Chapter 11 is not the end necessarily. K Mart went into Chapter 11, sold off a few corporatae jets, got rid of the CEO and a few other adjustments and when they came out, the bought Sears. Granted Walmart is still killing them but they hang in there. American auto makers have too many high dollar union contracts they can not get out of. When factory floor workers are making 6 figures, something isn’t quite right. Or at least it isn’t equitable for GM and Ford. Update the product, update the contracts, and get on with making cars.
Once again, say it with us, the American auto industry is alive in well in parts not in Michigan. While it is lamentable that the employees’ unions and bosses made some horrible choices, that is what happens in a market economy. I refuse to allow my tax dollars to support ridiculous executive salary and pay someone $31 per hour to do crossword puzzles. Until companies’ bailouts force them to accept the federal pay scale, I will continue to encourage my senators and congress people to vote against any aid.
Good!
[i] Will folks buy a car from a bankrupt automaker? [/i]
They pay good money to fly on bankrupt airlines.
_ _ _ _ _ _ _ _ _ _
Note that we’re stretching “bankrupt” to include going concerns that are under “chapter 11” bankruptcy court protection.
Chapter 11 graduates include United Airlines, Delta, US Airways (twice), and Northwest. Frontier is currently in chapter 11.
[blockquote]They pay good money to fly on bankrupt airlines.[/blockquote]
True Irenaeus, but they aren’t paying in excess of 20k to fly on that airline, and they aren’t expecting to service that 20k+ loan for 5 or more years to fly on that airline while wondering if the airline will still be in business at the end of the 5 year flight.
I would think that if the automakers went into bankruptcy that many buyers would shy away from them fearing that they would be stuck with loans on cars for which they couldn’t find parts as the suppliers and dealerships closed as the failure rippled through the economy.
Chapter 11 could be a wonderful opportunity for the Big Three automakers to rebuild their business models in a way competitive with foreign companies, who can successfully compete while manufacturing in the United States.
Unfortunately it won’t be. The new configuration in Washington will never do anything to anger their supporters in the auto unions, who are the other partner in this [i]pase doble[/i] to financial ruin.
No bailout. Let them file for bankruptcy.
I wonder if you will all be so gleeful when the larger effects of such decisions begin to be felt. Do you realize how many companies are laying off workers this morning already? Do you think none of this will ultimately affect you? That it’s just about “those people”?