I'm not sure I've got the scenario straight, so correct me where I'm wrong please-
President(?) Obama has changed the law, and contracts as they are written about bankruptcy mean nothing anymore. Private property of preferred stock and bondholders of Chrysler and GM is being stolen with his approval. That property is being given to those that supported his election, primarily the U.A.W..
But here's where I'm really confused...
Past dealings between the U.A.W. and the management of both Chrysler and G.M. have resulted in health care and retirement costs burgeoning to the point where those companies can no longer be competitive with foreign automakers.
The U.A.W. will have to deal with the new owners/managers of those companies to bring those costs down dramatically. So now the U.A.W. will have to negotiate with the U.A.W. to cut costs to the bone?
If Bozama gets his way, this unfolding tragedy will certainly be interesting to watch!
2 comments:
Now that's a factor I hadn't even thought of. Wonderful. Just wonderful.
cjh
Correctomundo GB,
Having sold cars, the first 2000-3000 profit, depending on the model, goes to the retirement funds. They can't keep up like this. That is one thing that is saving Toyota over here. They haven't been here long enough to rack up such packages. Having said that. He is another possible thought.
Consider this twist on the whole bailout thingy.
This was all part of the big plan.
It is no secret that the banks and Wall Street are behind it all. Obama loaned enough money to the car companies, knowing full well, that it wasn't enough to save them. right? Not like the amounts he gave the banks??
But, it is enough to say, okay, you failed, so now we do things my way and we now own you. Following me so far?
Now, who loans money to the new car owners? GMAC, Ford Motor Company, etc. So now they are basically out of that business and no further competition for the banks.
It just gets nastier and nastier.
Just a thought.
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