Can Obama’s Folly be Saved?

    Business has operated for a long time with a balance between unions and management.  A situation where either had all the power would introduce untold perils.  Unions could keep increasing wages and benefits and reducing work hours until they got huge sums for no work at all.  On the other hand, management might never give raises or benefits unless there was a labor shortage and they couldn’t get workers otherwise.  Of course the idea of government being in business never had a lot of merit.  After spending many years employed by the federal government, I have observed that they have a lot of people who know some things but often don’t know where things come from or how business works.

     So now we are seeing the pending Obama Chrysler plan breaking all the rules.  We are going to have a company managed by the Autoworkers unions with management guidance from the government.

 The only parallel is what happened in England before Margaret Thatcher.  They nationalized some car companies because they were going broke.  But they kept them making cars that nobody wanted to buy to keep jobs going.  You can do this for a while but sooner or later, the cars will pile up or you will have to discount them so much just to get rid of them that you go broke.  In fact, one of the big problems Chrysler had going into this deal is that they are already making cars that people don’t want, at least not in big numbers.  Our only hope is that the bankruptcy court will impose a little law and order.

     There is also the problem that Obama doesn’t seem to understand that bond holders are supposed to come first in bankruptcy.  Obama seems to think that the law or tradition doesn’t matter, that he should be able to manage a bankruptcy according to his personal idea of fairness.  Since he has a dim view of the people who provide the capital, he makes them out to be the bad guys.  But this will never be resolved until there is real, new capital from real investors who don’t want to be minority partners with the UAW, an idea that eludes the young professor.

    For Chrysler to survive and be recapitalized, they will have to learn to make cars people want to buy and to offer a reasonable hope of making a profit.  They aren’t going that direction under this plan.

    So the only way for Obama’s Folly to be saved is for the bankruptcy judge to reorganize the reorganization.  Under the current plan, no rational investor is going to want to buy into the new Chrysler.

Comments

[tuwklbm]

vTDBeq eisjddkgihfk, [url=http://pmobcjhnthlg.com/]pmobcjhnthlg[/url], [link=http://keqeevzwrxno.com/]keqeevzwrxno[/link], http://zqqgcylsutgy.com/

[leroy1930]

Thanks for mp3, http://auto.user32.com/1998-gmc-buick-regal3-8lt.html, >:[[[, http://auto.user32.com/classic-chevy-car-sale.html, 70375, http://auto.user32.com/infant-car-seat-5-20-lbs.html, :], http://auto.user32.com/barnes-and-nobles-kokomo-in.html, >:-[[, http://auto.user32.com/volkswagen-beetle-kit-cars.html, 8(, http://auto.user32.com/honda-civic-3-doors.html, %DDD, http://auto.user32.com/hire-car-shannon-airport.html, :O, http://auto.user32.com/infiniti-mile-per-gallon.html, gix, http://auto.user32.com/demon-eyes-scion-scottsdale-tc.html, 229, http://auto.user32.com/33-alfa-romeo.html, 820897, http://auto.user32.com/car-steering-gear.html, gnbec, http://auto.user32.com/2004-nissan-titan-headers.html, 907945, http://auto.user32.com/1996-accord-coupe-honda-lx.html, rpd, http://auto.user32.com/car-kit-lockout.html, =((, http://auto.user32.com/gentex-auto-dimming-mirrors.html, 112, http://auto.user32.com/car-sales-garvagh.html, jjn, http://auto.user32.com/2006-suzuki-sv-650.html, 8), http://auto.user32.com/mercedes-top-storage.html, >:(((, http://auto.user32.com/types-of-isuzu.html, scsdsj,

[cesar1985]

Excellent track, http://auto.user32.com/89-honda-civic-dx.html, 344, http://auto.user32.com/church-31st-and-lincoln-milwaukee.html, %-PPP, http://auto.user32.com/bentley-connecticut-dealership.html, 8-(((, http://auto.user32.com/corby-car-hire.html, 1874, http://auto.user32.com/audi-4b0-601.html, 8D, http://auto.user32.com/find-a-honda-dealership.html, >:-(, http://auto.user32.com/dodge-accessory-by-mopar.html, 3379, http://auto.user32.com/2003-oldsmobile.html, oxzyr, http://auto.user32.com/mercedes-w123-300.html, 646, http://auto.user32.com/ford-explorer-2002-check-engine-light.html, :-[[[, http://auto.user32.com/jeep-wrangler-for-sale-texas.html, 0213, http://auto.user32.com/car-audio-battery-uk.html, 240312, http://auto.user32.com/2006-infiniti-fx-deal.html, 95985, http://auto.user32.com/michigan-mazda-dealers.html, kolja, http://auto.user32.com/1950-volvo.html, 584, http://auto.user32.com/bilstein-jeep-shocks.html, :))), http://auto.user32.com/car-concept-lincoln-sentinel.html, gyyx, http://auto.user32.com/used-jeep-price-1988.html, 8P,

[hong1992]

Learned a lot, http://auto.user32.com/rental-cars-in-meriden-ct.html, :-)), http://auto.user32.com/sears-auto-steubenville-oh.html, >:-))), http://auto.user32.com/nissan-sentra-1986-mpg.html, >:-]], http://auto.user32.com/85-honda-accord-part.html, :-OO, http://auto.user32.com/manual-mirror-for-a-kia-sepia.html, 034434, http://auto.user32.com/1998-oldsmobile-intrigue-water-lock.html, 77924, http://auto.user32.com/1999-c280-mercedes-benz-car-manual.html, 5974, http://auto.user32.com/wiseco-pistons-subaru.html, %((, http://auto.user32.com/mudd-booth-lincoln.html, 8(, http://auto.user32.com/bike-cb550-honda.html, 610931, http://auto.user32.com/sapulpa-auto-pool-oklahoma-city.html, >:D, http://auto.user32.com/volkswagen-auto-deals.html, 85235, http://auto.user32.com/picture-suzuki-2006-sv650s.html, 8035, http://auto.user32.com/lorinser-mercedes-cls.html, jazmmz, http://auto.user32.com/2002-kia-spectra-owners-manual.html, kswo, http://auto.user32.com/suzuki-motorcyles-problems.html, ukdng, http://auto.user32.com/city-crystal-ford.html, 8DDD, http://auto.user32.com/pontiac-gto-car-parts.html, %OOO,

[robt2009]

Excellent thing, http://auto.user32.com/charleston-wv-kia.html, 4510, http://auto.user32.com/toyota-redding-california.html, rqenv, http://auto.user32.com/tj-lift-jeep-2in-block.html, trhpx, http://auto.user32.com/saab-900-serpentine-belt-installation.html, mtg, http://auto.user32.com/chrysler-bcm-problem-door-lock.html, 13419, http://auto.user32.com/concept-car-show-detroit.html, =[, http://auto.user32.com/chevrolet-corvett-c7.html, tiube, http://auto.user32.com/1986-nissan-hardbody-pickup-picture.html, ehk, http://auto.user32.com/show-car-hearse.html, :D, http://auto.user32.com/fiat-panda-review-photos.html, 8990, http://auto.user32.com/us-auto-loans-the-internet-leader.html, 548073, http://auto.user32.com/car-wreck-jokes.html, 852, http://auto.user32.com/car-zodiac.html, 493, http://auto.user32.com/car-racks-for-canoes.html, =-[, http://auto.user32.com/nissan-maxima-front-door.html, ekhhcj, http://auto.user32.com/1995-audi-s6-wagon.html, 2209, http://auto.user32.com/skoda-car-made-of.html, ugo, http://auto.user32.com/aftermarket-parts-for-kia-optima.html, 4213, http://auto.user32.com/ford-2710.html, amv,

[malcom1973]

Hello, http://carslive.in/auto-circuit-tester.html, nuqktr, http://carslive.in/tuning-a-bmw.html, >:], http://carslive.in/1995-porsche-911-carrera.html, 754, http://carslive.in/macon-repo-car.html, :((, http://carslive.in/car-dealers-in-chattnaooga-tn.html, :(((, http://carslive.in/1999-nissan-maxima-maf-filter-adapter.html, 3596, http://carslive.in/jrs-car-stereo.html, %-), http://carslive.in/cars-of-america.html, >:]], http://carslive.in/ford-financing-0.html, %D, http://carslive.in/jackson-volkswagen-wyoming.html, 47430, http://carslive.in/auto-parts-tv-commercial.html, 198, http://carslive.in/auto-door-nerf-strips.html, :-OOO, http://carslive.in/amc-theater-clearview.html, 620703, http://carslive.in/miller-chrysler-transmission-dipstick.html, 886100, http://carslive.in/red-taylor-ford.html, zxituo, http://carslive.in/ford-closings.html, 705611, http://carslive.in/volvo-truck-vn-diecast.html, uwoifp, http://carslive.in/auto-accident-i-95-maryland.html, =((,

[burt1941]

Good profile, http://carslive.in/john-kraft-auto-transport.html, >:], http://carslive.in/addison-lee-car-sales.html, bmfi, http://carslive.in/auto-shop-dispatcher.html, acjxo, http://carslive.in/2005-gmc-truck-vortec-max.html, %-O, http://carslive.in/rank-for-2008-chevrolet-equinox.html, 8]]], http://carslive.in/6700-ford-tractor.html, 257662, http://carslive.in/burlington-mercury-washington.html, uxnsgn, http://carslive.in/orthopedic-surgeon-plymouth-ma.html, >:-D, http://carslive.in/mercury-mrine.html, %]], http://carslive.in/maybach-car-sales.html, whcbf, http://carslive.in/picture-of-1957-ford.html, etl, http://carslive.in/used-cars-by-owner-alta-loma.html, tfbxs, http://carslive.in/grand-theft-auto-liberty-city-stories-review.html, eat, http://carslive.in/cc-4566-honda.html, hao, http://carslive.in/sourire-car-rental.html, 8-D, http://carslive.in/blue-and-white-car.html, =OOO, http://carslive.in/barnes-noble-store-locations.html, %(((, http://carslive.in/breathe-car-commercial.html, 8D,

[allan1942]

Hi,glad to see you, http://carslive.in/state-of-texas-automobile-title-application.html, sgtll, http://carslive.in/1949-buick-roadmaster-bench-seat-covers.html, 6409, http://carslive.in/pre-owned-honda-atvs.html, qun, http://carslive.in/2007-suzuki-c50-oil.html, 292713, http://carslive.in/zeon-car-lights.html, 9644, http://carslive.in/mopac-auto-accessories.html, 659655, http://carslive.in/freya-auto-bearing-replacement.html, :PP, http://carslive.in/annual-car-report-smart.html, fsl, http://carslive.in/bmw-ball-joint.html, fbl, http://carslive.in/demolition-derby-car-sketches.html, 2800, http://carslive.in/kia-sedona-car-parts.html, =[[, http://carslive.in/trade-in-value-of-automobiles.html, mnr, http://carslive.in/buying-reviews-car-batteries.html, %OOO, http://carslive.in/1992-club-car-resistors.html, 371446, http://carslive.in/rolls-royce-silver-dawn-sale.html, pjs, http://carslive.in/high-performance-toyota-22re-engine.html, 880, http://carslive.in/christmas-gifts-for-your-cars.html, qvudz, http://carslive.in/gmc-3500-wheelbase.html, %-],

[gerry2005]

Good luck, http://carslive.in/cars-gov-en-espa-ol.html, mfcg, http://carslive.in/charger-for-battery-powered-kids-car.html, =-)), http://carslive.in/bill-munday-ford.html, 90444, http://carslive.in/livonia-bentley-yearbook.html, 930768, http://carslive.in/used-audi-king-county-wa.html, ekeae, http://carslive.in/gran-theft-auto-psp.html, 8-(((, http://carslive.in/dodge-dealer-in-oklahoma.html, :D, http://carslive.in/plymouth-colony-pilgrims.html, jpqqd, http://carslive.in/ford-truck-screen-saver.html, wip, http://carslive.in/car-crash-netherton.html, 4378, http://carslive.in/subaru-of-muskoka.html, 3255, http://carslive.in/coolant-reservoir-for-1996-dodge-avenger-2-0-engine.html, 3661, http://carslive.in/auto-protect-scans.html, 1370, http://carslive.in/mitsubishi-of-jacksonville.html, 98657, http://carslive.in/tim-ford-died-july-2009.html, ooaa, http://carslive.in/ford-econoline-adding-coolant.html, uuz, http://carslive.in/honda-shadow-phantom-review.html, :DDD, http://carslive.in/chevrolet-delaers-columbus-oh.html, :-O,

[lenard1950]

Excellent track, http://carslive.in/4-0-l-jeep-throttle-plate.html, %-]], http://carslive.in/internet-auto-reno.html, 21179, http://carslive.in/bmw-bonnet.html, ofmgjz, http://carslive.in/lynn-layton-cadillac-decatur-al.html, pfty, http://carslive.in/toyota-matrix-fender-flares.html, 824761, http://carslive.in/alpine-9883-manual.html, %[[[, http://carslive.in/cheap-lexus-sales.html, jrlth, http://carslive.in/blake-and-nation-auto-body.html, =(((, http://carslive.in/today-show-book-top-cars.html, %-PP, http://carslive.in/car-dealership-nyack-used.html, %-P, http://carslive.in/whole-sale-auto-auction.html, 836167, http://carslive.in/rear-picture-of-2000-cadillac-escalade.html, =[, http://carslive.in/toyota-camry-2007-cup-holder-jam.html, 774, http://carslive.in/cog-auto-theft.html, 856515, http://carslive.in/walzer-car-dealer-in-minnesota.html, xbzeq, http://carslive.in/car-sales-clip-art.html, 388, http://carslive.in/pontiac-g8-wagon.html, tgbgad, http://carslive.in/obo-auto.html, ftq,

[orlando1974]

An interesting realization, http://carslive.in/fords-latest-f150-recall.html, 413, http://carslive.in/underglow-for-cars.html, ejahc, http://carslive.in/k75-rt-bmw-specifications.html, 5031, http://carslive.in/dependable-auto-in-fairless-hills-pa.html, ezkl, http://carslive.in/ford-bronco-2-taurus-fan.html, ausz, http://carslive.in/mobile-router-car.html, bmumfg, http://carslive.in/honda-reble-250.html, 38322, http://carslive.in/car-and-driver-comparison.html, 8O, http://carslive.in/shuttle-car-companies-in-orlando-fla.html, 6005, http://carslive.in/driver-lincoln-mercury-select.html, wimio, http://carslive.in/sullivan-pontiac-buick-gmc.html, okok, http://carslive.in/tibia-auto-site.html, 050385, http://carslive.in/jdm-auto-huntley.html, 192736, http://carslive.in/dodge-conversion-van-for-sale.html, mgut, http://carslive.in/sourire-car-rental.html, 7706, http://carslive.in/chevrolet-factory-truck-wheels.html, vfordj, http://carslive.in/rental-car-troy-mi.html, =-D, http://carslive.in/auto-accident-i-95-maryland.html, 501,

[donovan1994]

Thanks for video, http://carslive.in/1968-cadillac-coup-deville.html, 767054, http://carslive.in/auto-rim-raleigh.html, 069, http://carslive.in/concord-auto-body-st-louis-mo.html, 359, http://carslive.in/toyota-echo-timing-chain-replace.html, izo, http://carslive.in/car-leasing-with-adverse-credit.html, kuamsn, http://carslive.in/chrysler-dodge-jeep-preston.html, lgpkt, http://carslive.in/first-engineer-of-bmw-airplane-motor.html, 236, http://carslive.in/dodge-county-wisconsin-deadbeat-parent-database.html, 901, http://carslive.in/suzuki-two-wheelers-india.html, =OO, http://carslive.in/used-eldorado-cadillac.html, 253, http://carslive.in/best-automatic-car-in-india.html, >:]]], http://carslive.in/billings-montana-stock-car-club.html, :-], http://carslive.in/used-car-sales-aston-martin.html, =-))), http://carslive.in/ford-raptor-r-production.html, 29972, http://carslive.in/volkswagen-only-parts-toronto.html, 8-), http://carslive.in/viajero-car.html, fhml, http://carslive.in/skoda-felicia-glxi.html, pqs, http://carslive.in/1997-jeep-engine-codes.html, hkllhi,