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News Let Detroit Go Bankrupt

Let Detroit Go Bankrupt Let Detroit Go Bankrupt

Submitted by Patriot Watch | 1 year ago

www.nytimes.com - IF General Motors, Ford and Chrysler get the bailout that their chief executives asked for yesterday, you can kiss the American automotive industry goodbye. It won’t go overnight, but its demise will be virtually guaranteed.

Tags: GM, Ford, Chrysler, bailout, bankrupt

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Patriot Watch (Independent) - 1 year ago

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Reply to MsAttitude
There is no disagreement that these companies failed to produce cars that Americans want to buy and … Show full comment

I don't know to be honest with you but they will go right back to the old model. They can't decrease pay or go non-union so they raise prices on cars? Can't do that.
My problem is who's next and when does it end. All this money?? Who's paying for it? You and me.
The biggest problem I have is a Democrat ran on change as usual and promised he would be different. Frank, Dobb, Reid and a host of other Dems have been pushing for years to loosen up on credit checks so people who couldn't afford a house got one.
Don't blame wall street or main street that is crap. Dems pushed the housing market in a bad direction now everyone in every industry is suffering.
Until this Obama comes out and admits as such just as Bill Clinton did a few months ago I am on a rampage. I'm p**sed.
Our school systems, our markets and our energy policies all suck because of Dems.
I'm not mad at you Ms Attitude. I'm mad at people saying George Bush, George Bush instead of telling the truth.

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Wandler 1 year ago

OK, so the stronger part of me thinks we should get on with the fire and hope (nay, expect) a stronger tree grows in its place. But this would be a fire of such epic, unimaginable proportions that its ramifications would tear through the US economy in virtually all its aspects. 'Ripple effect' hardly does justice to what you would see - this would be tsunami time and the financial lowlands would be extensive. Some of those in the 'I say...let em burn' camp would be stunned to find the water at their own doors.

There's lots of blame for all here - mistakes were made (as they say in that terific 'past passive exonerative' case) - but more pain is more pain and it can be avoided. Well, perhaps.

How? By providing a bailout but on nasty tough terms. Haircuts so short, from the execs to the bankers to the dealers to the folks on the line, that they actually ask themselves if they would prefer to close shop/walk away. If less than, say, a third don't give up then we're not tough enough.

Debt gets swapped for someday equity, equity gets diluted, wages get slashed, insider options get re-priced (or terminated!), lenders must step up, and...ya get the point.

Then the stakeholders - in the broad sense - have to work together to rebuild or lose it all.

It's a hard call - gut wrenching to use my money to prop up an industry we've seen slide for years, but I say give them a last chance on those terms. Make the central players hurt, but give them at least some chance to get better.

Few gave Iacocca a chance with Chrysler, but he pulled it off. Normally I'd say trust the market. But this is way too big.

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MsAttitude 1 year ago

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Reply to Patriot Watch
Supreme Athur is right. Government regulation and the Unions ran all over the 3. The BIG 3 and gover … Show full comment

There is no disagreement that these companies failed to produce cars that Americans want to buy and their management lacking coherent strategy. However, what do you propose at this point? Let them go into Chapter 11 or go out of business all together? Even if they do go to Chapter 11, they would need to draw financing from some sources in order to proceed with the re-organization.

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Patriot Watch (Independent) - 1 year ago

Supreme Athur is right. Government regulation and the Unions ran all over the 3. The BIG 3 and government set up all kinds of laws and regulations so no one else could get in the market. Than the 3 agreed to all kinds of UNION crap that made making a car real expensive.
Detriot auot workers make $70.00 an hour where Toyota worker here in USA make $39.00 a hour. Toyota cranks and the big 3 are asking for my money.
Now the employees are crying my retirement won't be funded. Well sell your house and down size and take that boat back. You should od been saving half your check.

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jcscuba (Independent) - 1 year ago

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Reply to Supreme Arthur
The Big Three are dinosaurs who haven't been on the right track for thirty years. They are living of … Show full comment

I posted this on my blog site this morning and couldn't agree more! http://jimsworldblogspotcom.blogspot.com/

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Supreme Arthur 1 year ago

The Big Three are dinosaurs who haven't been on the right track for thirty years. They are living off their rep from when they were the only game in town (the 50's or whatever). They should have never been able to last this long with their business practices in place. They are not American but ANTI-American, impulsive and lacking any vision.

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