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WASHINGTON – The Bush administration is seriously considering "orderly" bankruptcy as a way of dealing with the desperately ailing U.S. auto industry.
White House press secretary Dana Perino said Thursday, "There's an orderly way to do bankruptcies that provides for more of a soft landing. I think that's what we would be talking about."
Bush considering "orderly" auto bankruptcy - Yahoo! News (http://news.yahoo.com/s/ap/20081218/ap_on_bi_ge/bush_autos - broken link)
BAD move IMO, I believe bankruptcy, 'orderly' or not, will o nly serve to further depress already dismal sales.
Restructuring is the only way for the auto companies to fundamentally change their business models (which they should have already done over the past three decades). Bankruptcy is NOT the same as going out of business (i.e. United Airlines ran business as usual while in Chapter 11 and came out of it a better company). The dismal sales would exist regardless of whether the government would provide a bailout.
But nowhere in that article is there a clue as to what would actually be done. It's as though he thinks just by saying "orderly" everything will calm down and work itself out.
When Bush speaks, get an interpretation before anything else.
Example: During the Cold War, the Soviets kept saying they were not intent on world domination, that they wanted "peaceful co-existence" in all their relations. What that meant was "no opposition to communism" and what that meant was Soviet world rule.
So, when Bush says "orderly auto bankruptcy" he means, just like GOP members of Congress, that he wants to destroy the UAW, and if it puts union members out of work and out of their homes then that is what they get for being in the Democratic party.
Everything that man says is a lie, whether or not he garbles it as he usually does.
When Bush speaks, get an interpretation before anything else.
Example: During the Cold War, the Soviets kept saying they were not intent on world domination, that they wanted "peaceful co-existence" in all their relations. What that meant was "no opposition to communism" and what that meant was Soviet world rule.
So, when Bush says "orderly auto bankruptcy" he means, just like GOP members of Congress, that he wants to destroy the UAW, and if it puts union members out of work and out of their homes then that is what they get for being in the Democratic party.
Everything that man says is a lie, whether or not he garbles it as he usually does.
I don't think anyone actually knows what an "orderly" bankruptcy means.
Alot of people think they do, but letting the GM & Chrysler go Ch. 11 ( and Probably Ch. 7 for Chrysler) is a roll of the dice. No one really understands what the effect of such huge enterprises failing in this current fragile economy will look like.
It may be the right thing to do to let them go into bk, but I seriously doubt it will be "orderly" with or without Gov't funding.
Sales are down, there is an excess of inventory, handing the automakers a bunch of money won't help them, it's time for them to restructure and stand on their own feet bankruptcy is their best bet.
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