tag:blogger.com,1999:blog-403803322007821204.post1700738632280058713..comments2023-06-13T02:41:37.209-05:00Comments on A Traditional Life Lived: Bankruptcy is NOT the end of businessMichellehttp://www.blogger.com/profile/00799580437940059865noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-403803322007821204.post-77126343799287751562009-12-09T19:06:12.146-06:002009-12-09T19:06:12.146-06:00thanks my friendsthanks my friendsfilm izlehttp://www.zirzir.netnoreply@blogger.comtag:blogger.com,1999:blog-403803322007821204.post-19426085896668506732008-12-11T14:13:00.000-06:002008-12-11T14:13:00.000-06:001: Two years ago UAW made enormous concessions, th...1: Two years ago UAW made enormous concessions, the biggest of them being the take over of retiree health plans, which goes into effect soon. They also agreed to cut new employee pay in 1/2, meaning they would make less than half what Toyota, etc. pay their employees. Obviously these may be changed with the next contract negotiation, but judging from what UAW head said during the hearings last week, they will probably stay for a while.<BR/><BR/>2: It's a loan they will have to repay. It's true they may be back for more, and we can debate that loan then, but the current loan is covered by assets the companies already have and this government loan is first priority should the companies fail.<BR/><BR/>3: There are times where government oversight works. Sometimes it doesn't, but that's true of anything.<BR/><BR/>4: Could go either way. It really depends on who is chosen as the car czar.<BR/><BR/>5: Not sure on this so no opinion.<BR/><BR/>6: This depends on what level of bankruptcy they go into. You believe they will turn around under chapter 11. As I lay out in my other points, under the current economic conditions, that will be difficult if not impossible. <BR/><BR/>7: What regulation forced car companies to sell 10mpg SUVs? The only regulations on car production are CAFE standards, which have been at 24mpg (not including trucks) for almost 30 years. Their own CEOs and boards killed innovation because they thought it was too risky and they were making money on the SUVs. Toyota took the risk and benefited.<BR/><BR/>8: One of the main selling points for new cars are long warranties. Without those, cars whose value drop as soon as you drive off the lot become an instant upside-down loan for the buyer. A company in bankruptcy doesn't have to honor warranties and so that incentive isn't there to sell the cars anymore. It may not be a huge effect, but in an already depressed market, a 10 year, 100,000 mile warranty will sell a car better than no warranty.<BR/><BR/>9: No argument<BR/><BR/>10: It isn't nationalization. The warrants the government will get are non-voting shares. The "car czar" is only a position to ensure our money is being properly used, unlike what happened with financials.<BR/><BR/>11: DIP Financing is not available - http://financialweek.com/apps/pbcs.dll/article?AID=/20081013/REG/810129987/1003/TOC<BR/><BR/>If I thought that chapter 11 would work and more importantly that the workers who had nothing to do with the failure would be protected, I would support bankruptcy. Unfortunately, that is not the case. If the financial system wasn't locked up, we probably wouldn't even be here because they could still get financing for the reforms they have been working on for the past couple years.<BR/><BR/>The total plan is only $2 billion more than we spend in 1 month in Iraq. At least with this plan, we will get the money back.John J.https://www.blogger.com/profile/15113315088960432426noreply@blogger.com