On Fri, 5 Dec 2008 10:45:21 -0500, "Eisboch"
wrote:


"Boater" wrote in message
...

Eisboch wrote:

Here's a thought for you. The auto industry makes up a significant
percentage of our heavy manufacturing abilities. If we allow it to fail,
and that seems very possible, we will have lost much of our ability to
wage serious war. Not only would we not have the auto plants staffed and
available to manufacture for a war effort, we will have lost most of the
ancillary industries, too.

Hey, I know...we can shop for stuff on...eBay.



First of all, the auto industry is not anywhere near as important as a
wartime manufacturing base as it was 60 years ago. Future wars will not be
won because of a limitless manufacturing capacity in the US as it existed
during WWII. It will be fought and ultimately won with small, special
capabilities forces supported by technology. Still, the auto industry
should be saved.

There's a smarter, well proven way to resolve the auto industry problems.
It's called voluntary Chapter 11 bankruptcy. I am watching the House
hearings as I type. The UAW president is arguing against a prepackaged
Chapter 11 (with tax payer assistance) because he claims nobody will buy an
American car with the company in Chapter 11. I guess nobody has informed
him that nobody's buying them now.

It's painful to watch. I have to give Ford a bit of credit as they seem to
have been making more major changes in their business model than GM or
Chrysler. They aren't looking for a bailout, but rather a standby line of
credit.

A pre-packaged Chapter 11 is the fairest solution for all concerned,
including the taxpayer. It's not going out of business; it's an opportunity
to reorganize the business without being forced into involuntary bankruptcy.
Chapter 11 is far better than Chapter 7 for all concerned.

I'm not sure that Chap 11 is the right way to go. Depends on union
and dealer concessions under the gov loan deal.
With Chap 11 management has more options, but I don't trust the
management. What's hilarious about this is the auto guys are going
through hell while asking for less than 5% of what Congress just gave
Wall Street with no real resistance.
We'll see how it turns out. I'm pretty sure GM and Ford will tough it
out however it goes.
What I find most interesting is the air of protectionism the lays over
it all.
There are big changes a'comin'.

--Vic