http://www.nakedcapitalism.com/2009/03/obama-pushing-quick-surgical-big-auto.html --------------------------------------------snip What is Team Obama smoking? It isn't to their advantage to have an unrealistic view of the process, yet the pronouncements strongly suggest they haven't done sufficient due diligence on what this entails.
And consider this comment from a reader: The "Chapter 11" reorganization idea is an assumption. There is little contemporary evidence that a Chapter 11 reorganization of GM can succeed under the current system. A Chapter 7 bankruptcy liquidation is more likely. And there is no evidence Chrysler will do anything other than liquidate. It would be better if we were wrong, but this looks like Lehman redux. The powers that be are getting bailout pushback, and aren't willing to take any financial perps out, so by default it's Big Auto. And if they miscalculated, the consequences will be catastrophic. It won't simply be GM and Chrysler, but the parts makers, and the transplants will take hits due to the loss of suppliers. GM and Chrysler are not isolated players, but major components in a large ecosystem. There are no good answeres here, but the Administration does not appear to have thought this out (how many balls does Geithner have in the air, including the G20?). A miscalculation here would have major repercussions. But Andrew Mellon would be pleased. -raghu. -- "I lost a button hole today" - Steven Wright _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
