Bush looking into 'Orderly Bankruptcy' for Detroit, as opposed to...?
The House of Bush told reporters this morning that the administration is looking into an "orderly" bankruptcy for General Motors and Chrysler that would be part of an overall rescue package. One possible plan is to give the two automakers enough cash to make it through the next few months (essentially the bailout funds that GM and Chrysler pleaded for in front of Congress) and after that time a federal overseer would sit down with the executives and other interested parties to discuss filing for Chapter 11.White House spokesperson Dana Perino said during the press conference that "...the president is not going to allow a disorderly collapse of the companies... [it] would be something very chaotic that is a shock to a system. There's an orderly way to do bankruptcies that provides for more of a soft landing." Perino quickly added that no final decision has been made.
The plan would likely include major banks providing debtor-in-possession financing for GM and Chrysler (Ford isn't part of the plan), and would require serious concessions from the UAW, stakeholders, suppliers and investment banks.
[Source: New York Times]











Reader Comments (Page 1 of 3)
einstein 2:08PM (12/18/2008)
soft landing or not, you still hit the bottom
Reply
Lad 8:52PM (12/18/2008)
I worry when President Bush says he is going to do anything for the people or companies; I always ask: "What's in it for him and his trickle down buddies?"
I think Senator Corker (R-Tenn) has already given it away...it's all about union busting through the courts. Like I've say before: There's two kinds of politicians. Those who are in it for themselves and those who are there for the good of the people. No question which one Bush is. As a result, many of us no longer trust our government. In fact some are in fear when Bush speaks. That is if you can understand him!
hypermiler 2:09PM (12/18/2008)
$700 billion for Wall Street.
$0 for Detroit.
You will be telling your children the days you drove an American-made car down the highway. Your children wouldn't understand since all cars sold in the US would wear foreign badge.
Reply
Chris 2:18PM (12/18/2008)
Actually, most of us won't be telling our kids about the days we drove an American car down the highway because a lot of us own foreign brands. Just like how you didn't give a crap about clothes being made in the US and you went to Walmart/Sears/Macys/Bloomingdales and bought all of your clothing from companies outsourcing to small island countries. Or how you buy most of your electronics from foreigners. I doubt you have a RCA product in your entertainment system. I know I don't. The whole buy American thing is so played out and such a hypocritical joke.
I do support the US industry, when they make good products. And the sad thing is they are making great products: Pontiac G8, Ford Fusion Hybrid, even the fugly but interesting Chevy Volt.
But please stop the whole trying to guilt others into buying products. I'm sure you didn't care about US textile workers or electronics factories. Where were you then?
Dude 2:19PM (12/18/2008)
Most companies come out of bankruptcy much stronger and leaner.
If they do it right (i.e shed the UAW), you could be telling your grandkids about a time when "foreign badged" cars once dominated the landscape.
Chapter 11 is your friend. Use it!
Mobius_1 2:21PM (12/18/2008)
Daddy? What's a Corvette?
I hope that would never happen...
SPF 2:24PM (12/18/2008)
@Chris
Thank you.
Frylock350 2:26PM (12/18/2008)
@Chris,
My home theater system is Harmon/Kardon, my appliances are Whirlpool or GE, I drive a Suburban and a Roadmaster, I use St. Croix fishing rods, I wear Carhartt jackets, I use Snap-On and Craftsman tools, etc. I make a conscious effort to buy American and I'll always do my research to see if there's an American product before buying foreign.
I refuse to shop at Wal-Mart. They have about as much chance of getting my business as a Toyota dealer does.
ack154 2:31PM (12/18/2008)
@ hypermiler
You may need to get your ideas straight for a better argument. You can easily buy an American-made car with a foreign badge. Camry. Tundra, etc.
If you want to make that argument, maybe American-based is the best way to go with that one?
Oddly enough, my Scion is 100% Japanese both in parts and manufacture. I guess that makes me an unpatriotic asshole. That's fine by me though, I wouldn't trade it for any similar American branded car in the US.
zamafir 2:38PM (12/18/2008)
@Chris: Wow. well put!
Frylock350 2:37PM (12/18/2008)
@ack,
Or you could buy an American-made American car with an American badge like Malibu or Silverado.
happy_penguin 2:38PM (12/18/2008)
Driving a Scion doesn't make you unpatriotic. ;)
Matty 2:58PM (12/18/2008)
"Buying American" when you sincerely believe that there exists a better product for the money is irrational behavior. While I understand that one can derive noneconomic utility from owning something made in his or her country of origin, something as serious and expensive as a car purchase should not be taken so lightly. Before committing thousands of dollars to a very essential piece of machinery, consumers should shop around and consider products made in many countries. One of the beautiful things about the global economy is the ability for good products to enter any market and for the best products to win out. Think about this: American cars are selling poorly and the Big 3 are considering bankruptcy protection DESPITE the incredible patriotic, "buy American" sentiment in this country. To be selling so poorly despite noneconomic incentives to buy means that the products must truly be seen as inferior to foreign competition.
I find it ironic that Americans are chided for embracing the free market and buying what they feel is the best product when this country was founded on lasseiz-faire capitalism. It is truly "un-American" to ask for government intervention in the economy, if you consider our political culture. That said, I've been rooting for some federal money to go to the auto industry because I think it may actually have the potential to produce good products once some of the top execs are removed (and likely replaced with individuals who have successfully managed foreign car companies).
The free market is a core American principle. Freedom of choice is a core American principle. Blind allegiance to a company because of its place of origin is not a core American principle. Consumers should shop around and buy the best car for their money. I did; I bought German.
happy_penguin 3:05PM (12/18/2008)
There is no "free market" in the world, only in the United States. We have a $700 billion trade deficit. That's $700 billion drained from the United States, never to return all because of the dumping of foreign goods on American soil and it's only getting worse because people believe that we have a "free market" and that's why we're in such a hot mess.
compy386 3:17PM (12/18/2008)
@Frylock350
I have a friend that works in a plant that makes craftsman tools. Believe me when I say there's not an American that works there.
happy_penguin 3:20PM (12/18/2008)
How do you know they're not American? Has anyone checked their identification? And if they are not American, do they have work permits? If not, why hasn't someone turned them in?
compy386 3:27PM (12/18/2008)
I should clarify by saying there's no one on the floor that's American. They're all here on work visas from Vietnam. It's kind of sad how little they make. Earn minumum wage to do pretty hard work. I'm not really a pro-union person, but seeing people like that makes you think twice about their role.
Shipey 3:28PM (12/18/2008)
Chris,
There were lots of American clothing companies to choose from until NAFTA. As soon as that was passed, the entire textile industry base in the US collapsed. The companies either joyfully moved overseas (or south) in search of higher profits, or were forced to in order to remain competitive. I witnessed this first hand as my father was forced out of job after job as factory after factory closed.
Now, you have to search long and hard to find US-made clothing. It's still out there in small quantities, but major retailers rarely carry it.
So, with autos you still have a choice, with clothing, not so much.
I think it's completely un-American to say that buying a foreign car is un-American. Freedom of choice is what it's all about. However, it's just as un-American to dismiss domestic autos as inferior without giving them a fair shake when buying.
I'll never believe that my fellow countrymen cannot produce world-class products. We just need to change some laws so they can do so at competitive costs.
happy_penguin 3:38PM (12/18/2008)
Compy, I'd still rather have the factory here in the United States even with foreign workers as long as they're legal. Perhaps they'll choose to become American citizens and that kind of opportunity is what this country is about. I certainly hope they're being paid a legal wage and the proper taxes are being paid. I'm certain they deserve more.
Mike 3:51PM (12/18/2008)
Actually, we'll be telling our children someday that America was an Economic Super Power that lasted a short 60 years and we got to enjoy the finer things in life such as two cars in our garage, because we supported one another and realized that our neighbors made money by working at the local factory and in turn they bought goods or services from your company and you made money, so life was good. But at the turn of the century we got greedy. We wanted cheaper, disposable goods and we used "Union" as a punchline and ridiculed everthing that was made in America. So we watched reality TV on our Chinese made LCD televisions because it was easier than watching the world pass us by.
So to those of you who sit on your high horse and say "F#@K the Big 3", I ask how secure is your job? Because the alarming unemployement rate in the midwest is coming to your hometown soon.