Posted on 12/18/2008 11:36:24 AM PST by Shellybenoit
Apparently the President has heard the voices of his own party, earlier this week Republicans from both houses of Congress sent Bush letters about his plan to bail out the "weak three" Detroit auto-makers. The letters urged him not to make a deal without a reorganization of the Auto Companies, their obligations to their suppliers and the Union Contract. A deal to this effect was almost completed by Senator Corker, but the UAW bowed out at the last minute because they didn't want to commit to a date. At the time the rumor was that the UAW was certain that the President would intervene more gently than the Senate.
Now today the President is working on Pre-planned bankruptcy for the GM and Chrysler that would safeguard against a chaotic reorganization:
(Excerpt) Read more at yidwithlid.blogspot.com ...
Lol...what will they thik of next?
Actually, this might be the best we can hope for. It would force GM and Chrysler to take this route BEFORE Obama takes office, thus stealing from the Democrats the chance to fund a bailout that would avoid bankruptcy proceedings and their impact on the union!
Perhaps BYD or Tata will buy them out.
http://www.cnbc.com/id/28236421
http://news.cnet.com/2300-11389_3-6225465-1.html
As long as it involves a restructuring that fixes their cost problem, ok. There’s going to be some assistance to the Big 3, that’s a given. If the gov’t can force them via Ch. 11 restructuring to become competititve, i.e. bust the union, then it has some prayer of making sense.
And here’s a long discussion on the issue... LOL...
Bush says sacrificed free-market principles to save economy
http://www.freerepublic.com/focus/f-news/2149830/posts
Actually, this might be the best we can hope for. It would force GM and Chrysler to take this route BEFORE Obama takes office, thus stealing from the Democrats the chance to fund a bailout that would avoid bankruptcy proceedings and their impact on the union!
True dat!
Assuming the UAW work rules, wages and other high costs are fixed with GM and Chrysler. What will Ford do? It will be in Ford’s best interest to go into Chapter 11. Chrysler has so much inventory around the country in lots that they probably cannot give away.
Foolks this is all Pelosi/Reid 2006 socialism and more socialism is not going to fix it. Bankruptcy is the only way.
Somehow I think an “Orderly Bankrupcy” will still involve gobs of taxpayer money & other guarantees.
Exactly.
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