GM Spirals the Drain (Part 2)

[Dinner]

I have no doubt there will be forced concessions by the UAW and the bondholders both. I suspect before the end we will see all manner of concessions. I don't expect to see one side forced to completely disarm before the real talks even begin with the Auto Czar though instead I suspect some minor concessions (like the UAW has already done by eliminating the Jobs Bank and perhaps agreeing that the 2009 & 2010 payments be made in stock instead of cash) followed by a bridging loan. Then when the new President and the new Congress come in then we will see the real reform plan.

This stuff is all just the pre-dance posturing and there is no doubt about that. The real deal making comes in March and the bridging loan is designed to make sure the companies survive until March.

[Kuciwalker]

US car bail-out fails in Senate

http://news.bbc.co.uk/2/hi/business/7778830.stm

[MrFun]

YES!!

rising unemployment

[KrazyHorse]

Making the type of cars Americans will actually buy, in the quantity they will buy:

[KrazyHorse]

Best quote on the failure of the automaker bailout:

Congress has - probably accidentally and temporarily - heeded the advice of free market economists and voted against bailing out auto makers.

[Asher]

Originally posted by Oerdin
The last news tonight isn't good for the automakers. Republicans are demanding the UAW immediately slash wages and benefits before any bailout is approved.

[MrFun]

Why not have the executives and upper management of the big three slash their salaries and benefits along with their workers??

[KrazyHorse]

Who cares what the executives get paid? It's not a significant part of the problems of the automakers.

It's a nice, easy answer though. Just like boann's recent silly diatribe against congressional pay raises.

[Asher]

Originally posted by MrFun
Why not have the executives and upper management of the big three slash their salaries and benefits along with their workers??

Because it wouldn't make a difference?

[DanS]

The executives and upper management will have their pay slashed in a bankruptcy proceeding. No need to worry, MrFun.

[DirtyMartini]

Originally posted by KrazyHorse
Who cares what the executives get paid?

Many people. It's in poor taste to have top execs who have failed miserably making a ****pile of money while their company begs for bailouts from the government.

It's not a significant part of the problems of the automakers. It's a nice, easy answer though.

It's not an answer at all. Of course each individual CEO salary means nothing of consequence on the balance sheet, that doesn't mean it's right for CEOs to continue to draw huge salaries while their company sinks. If they want to fire their current CEOs and attempt to bring in someone decent -- fine, pay them the new guy a competetive salary to you can actually get them there. Tieing it to performance would be better, though.

[KrazyHorse]

Originally posted by DirtyMartini
Many people. It's in poor taste to have top execs who have failed miserably making a ****pile of money while their company begs for bailouts from the government.

The "who cares" part was a rhetorical question. The non-rhetorical question is "why should I care"?

"Poor taste" is a pretty silly consideration when it comes to the fate of a multi-billion dollar company.

[DanS]

Looks like Bush may intervene and do what he said he wouldn't do not 1 week ago.

[KrazyHorse]

that doesn't mean it's right for CEOs to continue to draw huge salaries while their company sinks

Right?

[KrazyHorse]

Originally posted by DanS
Looks like Bush may intervene and do what he said he wouldn't do not 1 week ago.

And just when I was starting to like the guy.