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On Sat, 06 Dec 2008 08:42:35 -0500, Eisboch wrote:


The fairest and most efficient means to save the auto industry is
through a government (taxpayer) supported, pre-packaged Chapter 11
filing. They don't go immediately out of business. Current workers
continue working. But, a federal judge will arbitrate new contracts,
vendor payments, and the negotiations required to accomplish these.
Government (taxpayer) financial support can be given subject to specific
uses for the money, as overseen by the bankrupcy court.

It works.

I'm not sure bankruptcy court would work in this case. Bankruptcy court
is good for getting people to do the same things, only cheaper.
Detroit's supply chain, is already working on very thin margins, as
evidenced by the number of in-bankruptcy companies, e.g., Delphi. It
seems to me, a more innovative approach is needed for long term
viability. Bankruptcy courts are not known for being innovative. I tend
to prefer Frank's bill.

http://www.house.gov/apps/list/press...ss111708.shtml

That is because they all have the same problem. Slack incompetant
management and union. Detroit has already spun off divisions and business
in a complex non-value added web. But they are related to the issues.
These contracts and management "buddy" relationships need to become more
competative.

They are correct this is an industry issue, and to let GM go into chapter 11
is really a necessity to send the shot out that it isn't going to pay to beg
on the public purse. It is now a mater of principle and GM has screwed
itself too far into the ground. Tehy should ditto this to banks, if they
can't make it work then it should be no different.

Hands in my pocket and they are not mine.