You're missing the point as well. They (in particular GM) may not be able to go into Chapter 11 and would be forced directly into Chapter 7 (ie, liquidation). That is the last thing that we want. But even going into Chapter 11, we have some problems. First and foremost, who do you know thats going to buy a car from a "bankrupt" company? Secondly, who is going to pay for their warranty costs? Certainly not GM, Ford or Chrysler...
No, I genuinely think Chapter 11 is recoverable, even for a car company. I think the difference between some of the people here is that only some are looking long term. By long term I mean decades, not years. It took decades to get into this situation, it'll take decades to get out of it.
YSSMAN
- The heads of GM, Ford and Chrysler are willing to do what Iacocca did nearly 30 years ago... Cut their pay to $1, no more bonuses across the board (already in effect at GM and Ford), all in the name of cutting costs
- They traveled to Washington by private jet, each of them. Whoopdy doo I say, but some of the House folks are making a big deal of it. Travel costs have already been slashed, it was publicized a week or so ago that GM was delaying new product debuts to Detroit and Chicago (instead of LA) because of the cost associated with getting the vehicles out there.
The point of those statements was not the action of individualized jet travel, but what it symptomized: excessive waste. The upper-level executives (and this is the case in all industries world-wide) create their own salaries, set their own rules and fringe benefits, charge everything to the company, and suffer no real consequences. Even the worst of CEO's have not only a golden parachute, but a job waiting for them after their
bombtastic failure. This lack of accountability is what most people would hope to change. If the average guy failed so publicly, you can bet it'd be quite a while before he was working again.
YSSMAN
- Congress is hinting at having strings attached with the extra money, higher CAFE standards have been suggested, the aforementioned bonus cuts, etc. The big question would be as to if they can get some kind of assurance that the cash would stay in the US and make certain that American workers keep their jobs.
I would certainly like assurance that either some kind of regulation or requirements are given before we -- the public -- involuntarily hand out almost US$1e9 to those-without-accountability. Both the auto and finiance industries are very lax in their self-policing.
YSSMAN
- Confusion seems to be whats going on with whats to blame for the situation. GM, Ford and Chrysler are pointing figures at financial institutions that have tightened regulations on loans... While also suggesting that there isn't any confidence in order to buy-in. Something that Toyota, BMW, Honda, Nissan-Renault, DaimlerBenz, Volkswagen AG, etc can all confirm as well...
![Confused :confused: :confused:](/wp-content/themes/gtp16/images/smilies/confused.svg)
It's all to blame. It's all part of the cause. A catastrophe of this magnitude doesn't have just one cause. It didn't
last time, or
the time before that.
YSSMAN
Some members of the House and Senate "get it," and simply put, others do not.
No, they certainly don't. But they do love grandstanding. It's how we got DMCA. I don't have especially high hopes for proper regulations/requirements this time around, but at least their mouths are flapping in the right place.
As for falling fuel prices, it's definitely not a good thing for our future. High fuel prices made alternative energy ideas look like the better investment. If prices should remaing this low (which I doubt they will for more than 12 months), funding will fall out of the alternative energy industry faster than coke up a LA debutant's nose.
But I have high hopes. Those who were messing with the oil commodity market have made their money and moved on. The price will slowly rise back up, hopefully before more damage is done to alternative energy's reputation. Because it's not for economic reasons that we really need it, remember? Anyone? Anyone? Crud, I hate talking to a vacuum.