Posted on 11/22/2008 5:58:05 AM PST by Leisler
The moment of truth in the nation's automotive bailout debate might have come this week. As the CEOs of GM, Ford and Chrysler begged Congress for federal aid, a Detroit radio talk-show host asked whether Michigan, as well as the car companies, should get assistance. The state is being hit by an economic hurricane, he said, just as New Orleans was hit by a natural hurricane. Huh? Will the victimology myth never end? Hurricane Katrina was an act of God. The car crisis is an act of man. For the difference, consult the Bible. Any version will do. Yesterday, congressional leaders gave the car companies until Dec. 2 to come up with viable business plans and renew their request for aid. Meanwhile, it's worth examining the myths that are shaping this debate. One is GM's assertion that "bankruptcy is not an option." In truth, GM already has conceded that it's bankrupt -- by publicly stating it's nearly out of cash and needs emergency assistance. The company hasn't made a formal bankruptcy filing, which is no small matter. But it has declared bankruptcy everywhere else. Chrysler, at this week's Senate committee hearing, did the same. A second myth is that management changes in Detroit would be pointless. GM CEO Rick Wagoner said he wouldn't resign to secure federal aid for his company. This was like Louis XIV saying, "L'État c'est moi."
(Excerpt) Read more at online.wsj.com ...
What did the car companies do during the great depression of the 30’s?
Bad link.
Ceo should resign when a publicly held co. goes bankrupt
You did not cut costs for your Shareholders, Rick Loser.
It is not like it has not been done before.
I guess they figure no one would buy a car from a bankrupt company...?
It’s been a bad morning....
The milk industry is worse off than the auto industry:
http://feedyouradhd.blogspot.com/2008/11/milk-industry-moos-for-bailout.html
Yep. Appears to me like their financial reporting has been deficient (materially understated liabilities?), and there might be some jail time due for corporate officers (fraud). Too bad the real culprits (union bosses and the DemocRATic Party pols) don’t get to join in some of that.
Wrong. The flooding of New Orleans was also the result of human folly in building a large city below sea level. I remember that after the storm sensible people argued against rebuilding much of the town. But instead, the productive, sane, disciplined people of America (an ever-shrinking minority, based on the last election) are expected to bail out everyone who does something stupid or corrupt.
Many smaller manufactures went out of business. Some where bought up.
" ... We know that methane gas is a serious contributor to global warming, but just how are you supposed to feel comfortable producing milk when you have a suction pipe attached to your ass all day long,” Smith asked the committee ..."
This leads me to believe that attaching suction pipes to all the asses in Congress (with the exception of Barney Frank and his queer friends, of course) might just solve many of our current problems.
1) It may just be so uncomfortable that they would not be able to continue destroying what is left remains of this country.
2) The combined gas output provided by these idiots may be substantial enough to power the country for the foreseeable future.
Just before Katrina hit, someone here was saying that the hurricane could cause $10 billion in damages. Some Freeper from Detroit chimed in and said that if Katrina hit his home town it would do $10 billion in improvement.
Went out of business.
Cord, Pierce-Arrow, Bantam, Willys would have were it not for the Jeep,Duesenberg, Auburn...about 50 manufacturers shut down in the depression, leaving only the strongest companies. Washington didn’t lend a dime and the best companies survived and thrived.
Mitt is right - NO BAIL OUT!
Taxpayers shouldn’t be paying for this.
File for bankruptcy.
NO union payoff.
“Washington didn’t lend a dime and the best companies survived and thrived”
Thats kind of what I was thinking.
“I guess they figure no one would buy a car from a bankrupt company...?”
Thats exactly what they are afraid of. But it don’t look like people are buying at present either. I don’t think it bothered Chrysler when Iacocca took them over as CEO in recievership, FOR ZERO SALARY! And Chrysler has done good in the years since considering the burdemsome union contract that remained intact.
This is more about the Democrats trying to save one of their biggest campaign contributors and voting blocs, the UAW.
I guess they figure no one would buy a car from a bankrupt company...?
The percentage of companies that come out of chapter 11 is low. Who would want to buy a car not knowing if the warranty would be any good or if parts would be available. Plus, with the computers on cars now there are some things that regular mechanics don’t have the equipment for, only dealers.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.