Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Pelosinomics: Bankruptcy Is Not An Option
The Minority Report ^ | 3 December 2008 | .cnI redruM

Posted on 12/03/2008 5:36:01 PM PST by .cnI redruM

On Wednesday, the Big Three American automakers converged upon Congress- with their Christmas List of unjust demands. These would be the terms by which they would continue to produce sub-par merchandise, employ large numbers of Democratic Party loyalists and manage a pension and health care system that no one in their right minds would want to take over as part of a bankruptcy receivership.

The blackmail cost was originally $25Bn, but has now gone $9Bn higher. It will now require $34Bn in emergency funding for The United States of America to pretend it still maintains a viable domestic automotive industry.

There were skeptics in the audience. Members of both houses of Congress concerned that they may have to undergo competitive elections in the near to moderate future. These individuals had the gall to ask a few pointed questions. Senator Menendez crowned himself Master of The Obvious™.

"What is the strategy moving forward?" Sen. Robert Menendez asked in an appearance on CNBC television.

A logical economist, operating under the usual assumptions of microeconomics, might suggest these corporations find ways to drink in revenues faster than they piss away expenses. Executives for Walmart have stayed in the Econolodge while inspecting remote retail outlets. Executives from Ford Motor Company have flown into DC by private jet in order to beg for taxpayer money. One of these two corporations has a recent history involving profits instead of colossal losses.

That, however, involves pain beyond the threshold of casual tolerance. Union contracts require shredding. Deadbeats would be cut loose from bloated payrolls. Plants that produce marginal product at too high a cost would become abandoned corpses; symbolic of failed corporate thinking.

Political careers would crash and burn. So would social agendas. In short, the logical universe would welcome a lot of people accustomed to unearned comfort out into the suck. Nancy Pelosi therefore reworked economic theory to avoid the unpleasantness of condign and well-earned misery.

Nancy Pelosi has rewritten the stodgy, boring theory of the firm. Bankruptcy is officially no longer part of the outcome space. No matter how poorly a company executes, no matter how few units of merchandise get moved, no matter how much desperately needed capital gets poured into jobs banks and executive jets, bankruptcy is no longer an option.

She has taken this bold step for several reasons. A full-blown corporate bankruptcy could invalidate labor agreements that favor her political allies. It would also delegitimize claims that traditional centers of manufacturing such as Detroit, Michigan, are the proper leaders for future American endeavors into heavy industry. States like Michigan, Ohio and Pennsylvania could find their industrial bases further eroded as other enterprises leave more rapidly to avoid ending up like General Motors.

Pelosi also has to support her party’s new President Elect, Barack Obama. He has no desire whatsoever to walk into the White House and immediately have to deal with a bankruptcy at Ford, GM or Chrysler. Thus Nancy Pelosi makes the ridiculous claim that the inevitable failure looming before her is not an option.

She thus informs her party in Congress that they will vote to bail out the recalcitrant car companies. Another $34Bn is extracted from the tax base or just printed up by fiat. A crisis is postponed, another extension given to stupidity.

But failure rewarded soon becomes failure repeated. That which is repeated becomes habitual. The day will come when $34Bn is not available and a nation over 60% opposed to the idea of bailing out the least diligent in our midst will rise up to say “no.” Then a bailout will be less important than a shelter for these people to go hide in.


TOPICS: Business/Economy; Editorial; News/Current Events; Your Opinion/Questions
KEYWORDS: 110th; autoindustry; automakers; bailout; dunceonomics; pelosi
Nancy Pelosi waves her magic wand...

and bankruptcy is no longr an option!

1 posted on 12/03/2008 5:36:02 PM PST by .cnI redruM
[ Post Reply | Private Reply | View Replies]

To: .cnI redruM

Nancy Pelosi is a kook.


2 posted on 12/03/2008 5:38:10 PM PST by dandiegirl
[ Post Reply | Private Reply | To 1 | View Replies]

To: .cnI redruM

Have a PROZAC day Pelosi.


3 posted on 12/03/2008 5:47:44 PM PST by Lady GOP
[ Post Reply | Private Reply | To 1 | View Replies]

To: Lady GOP

4 posted on 12/03/2008 5:48:08 PM PST by Lady GOP
[ Post Reply | Private Reply | To 3 | View Replies]

To: .cnI redruM
Bankruptcy Is Not An Option

When you get to where the "Big Three" are, you may not have a choice.

5 posted on 12/03/2008 5:50:56 PM PST by SteamShovel (Global Warming, the New Patriotism)
[ Post Reply | Private Reply | To 1 | View Replies]

To: .cnI redruM
She's a great negotiator.
6 posted on 12/03/2008 5:57:41 PM PST by Vince Ferrer
[ Post Reply | Private Reply | To 1 | View Replies]

To: .cnI redruM

“Bankruptcy Is Not An Option”

Why??? - it is certainly an option for everyone else.

And Chrysler has nothing to worry about. Their old customers will return. I have been driving Dodge pickups for many years and will continue doing so. Especially knowing they are under control of a bankruptcy judge.


7 posted on 12/03/2008 6:00:18 PM PST by elpadre (nation)
[ Post Reply | Private Reply | To 1 | View Replies]

To: .cnI redruM
When a moron like Pelosi can become Speaker of the House in our great country, something is very wrong in our great country.

Something needs fixin'.

8 posted on 12/03/2008 6:02:32 PM PST by Rum Tum Tugger
[ Post Reply | Private Reply | To 1 | View Replies]

To: .cnI redruM
Bankruptcy Is Not An Option

Does this mean that everyone currently employed in bankruptcy courts is now unemployed?
9 posted on 12/03/2008 6:03:00 PM PST by monkeycard (There's no such thing as too much ammo.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: .cnI redruM
Nancy Pelosi waves her magic wand... and bankruptcy is no longr an option!

It is very similar to the RATS always ranting about we are going to have to turn our thermostat up in the summer and down in the winter, put on sweaters, get out of SUV and climb into the new 850 lb Detroit cars that will be mandated with them taking RAT funds. The RAT congress is just going to mandate green energy whether it is available or not in sufficient quantities to run America (it isn't and won't be in the foreseeable future). zer0bama was recoded as saying he is going to bankrupt the coal industry and drive electric rates through the roof. The other unspoken RAT policy is to drive the little guy out of his automobile, as well as the destruction of the free market capitalism system and replace it with a life long rule of RAT socialism.
10 posted on 12/03/2008 6:03:11 PM PST by Cheerio (Barack Hussein 0bama=The Complete Destruction of American Capitalism)
[ Post Reply | Private Reply | To 1 | View Replies]

To: .cnI redruM

Thankfully GM will prove her wrong, because there isn’t a snowball’s chance in hell of this Congress passing anything in time that will help GM avoid bankruptcy.

I think we will see just how wrong she really is about this, shortly.


11 posted on 12/03/2008 6:04:52 PM PST by Bean Counter (Stout Hearts.....)
[ Post Reply | Private Reply | To 1 | View Replies]

To: .cnI redruM

But doesn’t Pelosi hate oil? Unless they promise to stop making cars that use it, why would she want to help the auto industry?


12 posted on 12/03/2008 6:06:48 PM PST by mikey_hates_everything
[ Post Reply | Private Reply | To 1 | View Replies]

To: .cnI redruM

Bankruptcy Is Not An Option...screech...Bankruptcy Is Not An Option...screech...
screech...screech...screech...screech...screech...screech...screech...screech...screech...screech...screech...screech...screech...screech...screech...screech...screech... Argggggggggggggggg. Sorry, the name palousie sends me up the wall.


13 posted on 12/03/2008 6:09:00 PM PST by TribalPrincess2U (go into the light............ sweetness-light.com)
[ Post Reply | Private Reply | To 1 | View Replies]

To: .cnI redruM

Being a hysterical socialist is mandatory.


14 posted on 12/03/2008 6:14:42 PM PST by Baladas ((ABBHO))
[ Post Reply | Private Reply | To 1 | View Replies]

To: monkeycard

Why is it when individuals screw up financially bankruptcy is about the only option but for these companies it is not an option ? What’s wrong with that picture ?


15 posted on 12/03/2008 6:45:02 PM PST by Lady GOP
[ Post Reply | Private Reply | To 9 | View Replies]

To: monkeycard
It's the singularity, Dude! The time-space continuum is ripped asunder!
16 posted on 12/03/2008 7:05:50 PM PST by .cnI redruM (Change is not always good, and Hope is not a plan.)
[ Post Reply | Private Reply | To 9 | View Replies]

To: Baladas

In better times, socialism was not an option.


17 posted on 12/03/2008 7:07:23 PM PST by .cnI redruM (Change is not always good, and Hope is not a plan.)
[ Post Reply | Private Reply | To 14 | View Replies]

To: .cnI redruM

They all have a lower approval rating than Bush. I feel comforted, and with his honor becoming president I feel safe, Hand me that barf bag son.


18 posted on 12/03/2008 7:27:18 PM PST by ronnie raygun ( When CHANGE comes let me know, I'll put my tin foil hat on and sit in front of myTV)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ronnie raygun

Here’s a swig of Black Bush, it’ll help you feel better ;) Another FReeper gave me that bottle last week.


19 posted on 12/03/2008 7:37:49 PM PST by pray4liberty (Always vote for life!)
[ Post Reply | Private Reply | To 18 | View Replies]

To: .cnI redruM

There are very many practical reasons bankruptcy is not an option for the American automakers, which are explained quite well here: http://www.amconmag.com/blog/2008/12/01/save-detroit-bankruptcy-now-would-do-incredible-damage/#more-1314

Of course, most people hyperventilating at the thought of a loan to the American automakers—a loan that, even if never repaid, will cost a tiny fraction of the 7 trillion dollars the Treasury Department and the Fed have thrown at the financial sector—aren’t interested in facts.


20 posted on 12/04/2008 12:32:24 AM PST by Thorin ("I won't be reconstructed, and I do not give a damn.")
[ Post Reply | Private Reply | To 1 | View Replies]

To: Thorin
1) If we bail them out, why would they bother performing better? There is no reasn. They just become Trabant.

2) Where do we draw a line on this garbage? Can you name a major industry that wouldn't require a bailout int he national interest under the criterion your link proposes? Next it's steel, then pharmacueticals, then trucking, then shipping....

No one has any obligation to conduct business in an intelligent manner. They are all “too big to fail.”

3) Nobody in Detroit couldn't have seen this coming. These people have known for years they were failing and they knew exactly why. Did they bother trying to fix it? Nope. They all relied on the “too big to fail” magic label to avoid having to assume any professional responsibility.

21 posted on 12/04/2008 7:52:28 PM PST by .cnI redruM (Change is not always good, and Hope is not a plan.)
[ Post Reply | Private Reply | To 20 | View Replies]

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.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson