wrote in message
t...
On Thu, 13 Nov 2008 11:38:58 +0000, Tom Francis - SWSports wrote:

On Thu, 13 Nov 2008 02:12:16 -0500, "Eisboch"
wrote:


"D.Duck" wrote in message
news:G_Odnc2FKtknEYbUnZ2dnUVZ_tfinZ2d@giganews. com...


My hope is that the GM/Ford/Chrysler problems are resolved (if
resolvable) in bankruptcy, not throwing more tax payer dollars at
them.


Duck, I couldn't agree with you more. Chapter 11 isn't permanent. It
allows for "reorganization" which is exactly what the auto industry
needs to do right now. Revise business plans, products and
re-negotiate the union contracts under the watchful eye of a bankruptcy
judge.

Handing them a pile of taxpayer money, calling it a government
"investment" just to keep them in business under their current
organizational structures won't do a damn thing.

I agree.

Tough call. I don't like these bailouts, but can we afford not to? In
this country, 1 in 10 jobs are connected to the auto industry. If the
auto companies fail, we're talking depression, not recession. All of
this, could get real scary, real quick.

I will argue yes, they can afford not to bail them out.

When GM is gone, there will be holes left. It will not take long before a
capitalist will buy up a plant or two, fire it back up and make money and
parts/cars.

For example, if GM goes down, say Ford picks up the brand image for $200
million on the cheap. Many ex-GM buyers will start to buy more Fords.

The problem is excess capacity driving costs nuts. Yet GM/Chrysler/Ford
can't downsize or the lower cash flow will cause them to miss their
obligations. There isn't room for 3 any more. In fact, it might go down to
one.

Another possibility, in chapter 11 they can be sold off. Say chapter 11
lets GM off of the union issues, lets them fix the financial issues. And
say 5 billionaires get together and buy it out for $25 billion on a clean
slate, fire dysfunctional management, send the union packing, and then
rebuild a lean mean high quality GM without the baggage that caused the
problem.

Having the tax system hurt everyone a little also gives everyone a little
less to spend on cars, further reducing the market. Moving GMs problems to
main street tax payers is counter productive as government inefficiencies
make it a loser. When main street pays you still have the fundamental
problems in GM waiting money.