February 23, 2009
Government Into Car Companies Too Deep to Get Out?
The principals in the auto companies are negotiating in light of a government bailout. This makes their negotiations difficult and less than satisfactory; everyone is encourage to hold out. We now find that even if an auto company takes a traditional Chapter 11, we may have the same problem -- the government financing will determine the winners and losers. Even in a Chapter 11 then the private parties will negotiate in anticipation of government funding. In or out of bankruptcy, the government will call the shots -- it has owns the problems.
February 23, 2009 | Permalink
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too deep..I dont like the government getting involved in any of these bailout companies! how are they going to learn from their mistakes when we bail them out? They needed to figure out how to fix this on their own.
Posted by: danielmolano | Feb 24, 2009 10:12:31 PM
Great post. Well done!!!
Posted by: Rania | Mar 1, 2009 5:01:37 AM
The entire bailout of the automobile is a big farce as far as I am concerned. The government has demanded that General Motors close down dealerships that have been in business for years. Imagine you owned a car dealership for 15 years that was worth $3 million... now it's worth nothing! Gen. motor gets the bailout but the small-business person gets what... the shaft
Posted by: Zumba | Jun 8, 2009 10:49:24 PM