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Old 12-06-2008, 07:46 PM   #61
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The problems in Detroit are not simple - otherwise they would have been resolved. They are deep rooted and mostly the result of an investor-driven culture that obsesses with short term results which are then massively over-compensated.

I also think the big 3 CEOs are in Washington asking for money not because they need it but because our political leaders are allowing it. In fact, they love it. Over $1T so far and more to come. No criteria, no scrutiny, no accountability, no agreed-on limit or total budget. AIG alone has more than $100B. This is a politicians dream come true. This isn't going to stop anytime soon.

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Old 12-07-2008, 09:28 AM   #62
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I agree with MichaelB. Come next election cycle, guess who is going to be calling on Detroit for contributions?

This issue, like many in the press, disgust me! We are fed half truths as truth. Things like 'No one will buy a car from a company in Chap 11' with no real data to back that up.

While no one is talking about letting the US auto industry go out of business, it is reported as though the auto companies would file Chap 7 (liquidation) vs Chap 11 (reorganization). Tens of millions of job losses. Well not in Chap 11, but hey so what, if they do file Chap 7 the headline is true, and besides it sells more papers, scares the average guy, and supports our agenda!
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Old 12-07-2008, 09:47 AM   #63
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Without aid, GM (at least) CAN'T file for chapter 11 as they can't secure the financinng to support a reorganization.
They are 46 Billion in debt to creditors.
The 3 Million jobs number I have heard is, I suspect, a stretch of epic proportions.
However, what people that throw around that number fail to say, is that if the companies are bailed out and become competitive again, how many jobs will that mean?
Think of it, many have said that the dealer networks are too big. Ok, if they shrink, how many jobs is that? More robots in factories? That means fewer workers, doesn't it?
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Old 12-07-2008, 10:31 AM   #64
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Without aid, GM (at least) CAN'T file for chapter 11 as they can't secure the financinng to support a reorganization.
They are 46 Billion in debt to creditors.
Agreed, but what if GM enters Chpt 11 with the Fed as the creditor? Can Congress do that, why "certainly" says Curly.

What if any downside would there be vs an outright bailout?
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Old 12-07-2008, 10:40 AM   #65
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Agreed, but what if GM enters Chpt 11 with the Fed as the creditor? Can Congress do that, why "certainly" says Curly.

What if any downside would there be vs an outright bailout?
I agree, I think that is the best solution. I should have added, 'without aid'.
I feel this would allow GM to do the necessary restructuring to become a viable company.
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