Edmunds.com | Inside Line | Auto Observer Your Account | Help | Directory
You are here:
![[F]](http://a332.g.akamai.net/f/332/936/12h/www.edmunds.com/media/townhall/webxicons/site.gif){kind=small}
Forums
Automotive News & Views Can Chrysler Turn It Around in Bankruptcy?
464 messages, Last post on Oct 02, 2009 at 2:05 PM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
|
Replying to: berri (Jun 09, 2009 8:42 am)  Well said. Easy for us to debate this issue. Kind of fun in a sadistic way but very educational. Learning a lot form everyone. |
|
|
Replying to: berri (Jun 09, 2009 8:42 am) Yeah, except you've seen how the hardliners treat moderates these days, right?  Anyway, this whole big mess is the result, not the problem. This is what happens when you start getting into bailing out private companies with few to no preconditions. And even if there are some (like seniority of debt) they get argued over. I love the seniority of debt bit...bondholders want more for their Chrysler bonds, so they figure they can tweak the rules and lobby for a taxpayer bailout so there's more assets in the company to collect. Government is smart enough to see this coming (though it's probably more like dumb luck) and decides to tweak the rules to make sure that government debt is senior and the bondholders can't tweak the rules to get at the taxpayer dollars. Bondholders hate this, so they try to tweak the courts, then government tweaks the BK process, tweak tweak tweak.. See where all the rule tweaking gets us? Into a deep disgusting mess. |
|
|
Replying to: dtownfb (Jun 09, 2009 8:53 am) The retirees will next get to sue either the investment company (if Indiana hires outsiders to manage the fund; otherwise, maybe they'll be able to sue the state). Or they'll sue banks doing the underwriting for the Chrysler bonds. That's what they did with Worldcom. (Basex.com)
|
|
|
Replying to: steve_ (Jun 09, 2009 9:29 am)
|
|
|
Replying to: dtownfb (Jun 09, 2009 9:38 am) I think the next round of suits you see will be against Moodys and the other rating services. Follow the money.
|
|
|
Replying to: steve_ (Jun 09, 2009 9:59 am) The unfortunate thing is that while we're all discussing bondholders, liquidation, debt seniority, and credit ratings, there's a whole bunch of people going out of work, and my teammate at work can't get any love on the Chrysler Care contract he paid for when he bought his car (ball joint went while he was doing 50...SKREEEEE!!!).
|
|
|
Replying to: bpizzuti (Jun 09, 2009 10:07 am) As I discovered a few months ago, the rating services such as Moody's are PAID by the company they are rating! Moody's is not paid by the government or charity. So there might be a conflict of interest there. Follow the money.
|
|
|
Replying to: kernick (Jun 09, 2009 11:09 am) Ummm...might, yeah. Kinda like auditors being paid by the firms they audit. Wasn't there some big news about that in recent years?
|
|
|
Replying to: berri (Jun 09, 2009 8:42 am) The temporary job losses is not a large enough hit to make that much difference. We have been losing 600,000/month for months and we may be recovering. The fact is, is that if Chrysler goes under, the demand for new autos will change little. people who would have bought a vehicle will still buy a vehicle of some other brand. There will still be the SAME number of autos sold. other manufacturers would gain and may add jobs or not layoff further. So I don't buy this major loss of jobs argument. If Dell goes out of business next week, the economy does not end. HP and Gateway and such will benefit, and the same number of computers will be sold. Chrysler going out of business may be exactly what Ford and GM need to become profitable. I do not want the government to change the rules of the game such that the race-car gets $500 everytime it passes "GO" and doesn't have to pay Boardwalk if it lands there.
|
|
|
Replying to: kernick (Jun 09, 2009 11:18 am) It sure would hammer consumer confidence if nothing else. When people think the economy is getting worse, they stop spending. And fewer cars (or laptops) will be sold. There's more at risk to letting Chrysler and GM fold than simply job numbers.
|
|
You are here:
Forums
Automotive News & Views Can Chrysler Turn It Around in Bankruptcy?
