Wednesday, November 19, 2008


Says to let the Big Three go into bankruptcy. No details on how the restructuring should be paid for, but hey, I'm sure he has an idea or two up there in that giant noggin of his.


Bubba the Hutt said...

He brings up some very good points in regards to the cost disadvantage brought upon by the unions. That quote "Getting more and more pay for less and less work is a dead-end street" is right on.

From what I've gleaned (wasn't able to watch today's grilling of the execs, only heard a summary from a co-worker) their big concern about the bankruptcy is that they won't be able to secure the credit they need to buy parts from manufacturers, which will then cause a ripple effect on jobs. I'd imagine there's an easy way around that problem with Federally insured loans that don't factor credit scores.

But that wouldn't fix the real problem, it's only a bandaid solution, and I think Congress sees that.

Like Mitt mentioned, labor costs, retiree benefits and executive perks must all come down. If you don't then you're sailing down the river with the same overloaded ship you had before, one that will eventually run aground.

daniel said...

the freemarket-er in me is happy to let all three us automakers go away. bust the unions, adjust post-retirement obligations to real world levels, get some good management in there; it sounds very good. unfortunately, it won't work right now.

debtor in possession financing, which is the major funding mechanism for companies trying to complete a chapter eleven restructuring obtain working capital, has been unobtainable for weeks. unless congress wants to authorize a blank check to run the companies for eighteen months or more, pay the lawyers and work out groups, and allow the OEMs to pay their suppliers, we'd have a liquidation on our hands rather than a reorg. if that's the desired policy, fine. be aware that it will also mean a doubling of us unemployment levels and a deepening of the current economic slowdown.

pragmatism trumps idealism when times get tough.

Bubba the Hutt said...

"You never want a serious crisis to go to waste, and what I mean by that is an opportunity to do things that you didn't think you could do before."

-Rahm Emanuel

Bubba the Hutt said...

The auto industry should look into using pictures of spiders as collateral.

Problem solved.

PassTheChips said...

GB's fascist (brown shirts) comment was a bit much, especially after the power grab of the last eight years.

Bubba the Hutt said...

A bit much? Maybe, but Bush's power grab would support that statement more than refute it.

The precedence has already been set, making a "brown shirt"-esq revolution more realistic, especially when you already have small children singing songs about you and teenagers in fatigues marching around shouting "Alpha and Omega" in your name.

PassTheChips said...

Definitely a Cult of Personality thing going on, but c'mon. Fascism? An overthrow of the Constitution?

Bubba the Hutt said...

I'm not saying that will happen, and I don't think that Glenn is either, but it does make for good radio.

The table has been set, and what better time to change everything when the fundamentals apparently aren't working.

PassTheChips said...

Entertainment trumps fact every time.