What do you make of Chrysler bankruptcy?

[Pat Coyle]

Conservatives have been suggesting all along that we should let automakers go bankrupt and not bail them out. This week Obama granted these wishes. Still, the depth of the Feds intervention into private enterprise is highly unusual...

From NY Times - The government, in assessing what was needed to make Chrysler viable, decided it needed to support workers, as well as suppliers, and guarantee the warranties on Chrysler vehicles.

Because the union agreed to negotiate, it was made a partner, with the government and Fiat, in developing the plan to restructure the company.

In contrast, other companies often use bankruptcy as a way to gain leverage over labor, so that they can lower their costs. Workers at Bethlehem Steel, United Airlines, Delta Air Lines and US Airways lost all or most of their traditional pension benefits when those employers sought bankruptcy protection in this decade, though some of the shortfall was covered by the federal government. Retiree health care coverage was also cut.

None of those cases, filed during the Bush administration, had the kind of federal support offered to the U.A.W. (Read the rest)

So what do you make of this situation? What will be the economic and political outcomes of a empowered UAW, foreign ownership of Chrysler, etc? Share our thoughts here

[Linda S Fitzgerald]

I think it's a big mistake to allow the union so much power in the restructuring. It's the consistent, ongoing insatiable demands of the union that is the primary reason the US auto makers cannot compete with Honda, Toyota, etc. And to have so much of the government involved in private enterprise is beyond the pale.

Bottom line: all that bailout money for nothing. They went "belly up" anyway!

[Kirk Booher]

I don't get it. The unions get controlling ownership for taking a cut they would have to take anyhow, the taxpayer gets stuck with billions and billions in bailout funds we will never likely see into the treasury again not to mention just forgetting about the 4 billion they just got, the secured creditors / bondholder get kicked to the curb and villianized by the President.

Does any astute business minded person think this is going to work? Look at the players,,,UAW, 2 governments and an Italian auto co.

I thought Obama was to bring change, like NOT as politics as usual. Now, when the unions support him...the are going to expect ownership in what company next? I guess we will need to change the country's name to the United Socialist of America.

It still has to go through a bankruptcy judge and hopefully he/she will see this plan makes no sense and protect the secured creditors.

[Linda S Fitzgerald]

Kirk,

I would like to think so - but what you want to bet that Obama & Company will have a hand in the choice of judge and considerable influence over his/her decisions too.

As this administration continues to evolve, it is clear to me that the change they brought is the worst amount of corruption of any administration we've seen in a long time.

I find myself angry when someone tells me they voted for BHO & then complains about what is happening. The other thing that is really getting under my skin (excuse the pun) is being accused of racism when I am critical of the administration's political philosophy and policies. Such actions, i.e. Eric Holder, etc., will set race relations back 100 years at this rate.

I know that's off topic. . . but there are few places a true conservative can express his/her opinions without being taken on by folks who don't think beyond their next paycheck - or lack thereof!

[Theresia Whitfield]

I just want to know if we're going to get back all that money we - the taxpayers - had to give them for their bailout. Ok, I won't hold my breath. So, they're filing for bankruptcy anyway. And guess what? The world hasn't come to an end! Wow. Another fine example of why government needs to stay the heck out of business.

[Linda S Fitzgerald]

Theresia,

As much as I deplore the idea of having to do so, I think most of us who are thoughtful folks, study the issues, have a sense of history and love this country, are going to have to become exceedingly politically active. We MUST defeat the Dems/liberals in '010 or consider that the USA will change in ways we have little or no control over!

Call it a "coup" or what have you. . but we do have to get involved and help folks understand that to continue down this path is to end up in the swamp!

[Kirk Booher]

I couldnt agree more. Hopefully there is a majority who think and feel the same way....sooner rather than later.

[Scott Emmett]

Well, I work for General Motors and Ford. What has happened to Chrysler is the next step in Obama's march to the United Socialists of America. GM is next. Ford knows better and is clearly the smarter of the three. It will be Ford looking brilliant at the end of the day. They have the business sense to not allow government into their affairs AND they have a GREAT product line.

Chrysler should have been let die a long time ago. Let the free market and TRUTHFUL OBJECTIVE press (now there's a laugh) do its job as it was designed to do.

[Kirk Booher]

You are in the business so you probably have better insight. I would buy a FORD just because they didnt take the Gov money, all things being close to equal. Where do you work?

[Scott Emmett]

My office is at Hubler Chevrolet, 8220 South US 31, Indy 46227. I sell out of three stores though that represent Chevrolet, Pontiac (for now), Buick, Cadillac, GMC Truck, Ford, Lincoln, and Mercury.

Don't know if my insight is any better than anybody elses. I just have the opinion that there will be a backlash against those companies that have taken government money. Regardless of the industry, people don't like bailing companies out. Let the free market do what it does best.

I have to tell you, though, Ford has an incredible product line up right now. The Fusion is a great car and the market already sees it. The Fusion Hybrid is the best hybrid built by anybody anywhere. We will have the Transit Connect this summer and it will be a phenomonal inner city work truck. Ok, ok. End of commercial!

[Linda S Fitzgerald]

Ditto, ditto! I've decided my next car will be a FORD; probably a FUSION. Why? Because they didn't take government money and they need to be supported for having done so. I was a Honda person for a while and had one that went to 405,000 miles (yes, it did); but they haven't made that kind of vehicle since the 80's. My main reason for buying a FORD is the result of what Chrysler & GM allowed the government to do. And I say - let them die on the vine.

I think Henry would be proud of the company he launched and those in leadership who saw the handwriting on the wall & said "thanks, but no thanks!"

So how and where do we get involved to take back our great land and it's awesome Constitution?

[Scott Emmett]

Two things: 1) Call ME when you are ready to get a Fusion. 2) We get back our Constitution when we elect people that understand it and know how it is supposed to work. We do not have that at present and it is only us to blame. We have allowed our kids to be taught at liberal state schools and decided that victimhood is better than personal responsibility. I want my Mommy! only works when you're two.

[Brian Morgan - Video Production]

>>>
Seen many people that have taken buyouts; some are now working retail jobs and wishing they could get back to their $100,000 per year days, some have homes that are foreclosed on, overall nothing is good economically in the short or medium term in America, IMO. Not being negative, just real - right now it's all negative...

Good to look at the 5 and 10 year Dow Charts (DJIA) and see just how Crushed the economy became & how fast it happened. Good time to be in business liquidation businesses...