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May 15, 2009


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Jack .. sticking up for small businesses!?! Remember ...this is the bankruptcy program that your president crammed down the industry's throat. It isn't just a few hedge funds that are getting screwed in this deal. Are you going Republican on us? If so welcome.

More Doom & Gloom from Jack...

Its really sad

As mentioned in passing above, the "take it or leave it, forced sale" aspect of what is happening to the dealerships is precisely what happened to the secured [that is, legally preferred, under the law] creditors of Chrysler.

It is sad, and it is hard, for small communities, to see these historic businesses close. No one is happy about it.

But this comes about in large part because of the shady intersection of government and business. GM and Chrysler had trouble in part because local franchise laws made it nearly impossible for them to trim dealership numbers until it was too late. Actually, all along, it was known to the realists among industry-watchers, that "bankruptcy protection" would be one of the few things that would provide the automakers with the legal tools to overcome those strangling franchise agreements. (The UAW did pretty well, by comparison to the secured creditors and the dealers. That should come as little surprise, since the Obama Administration orchestrated the deal and the federal financing.) Now, the question is how will these post-bankruptcy companies find private financing, and profitability? And for Ford, having declined federal bailouts and having avoided bankruptcy, how will it deal with its dealership network, which faces many of the same over-capacity problems as did GM and Chrysler? So far, Ford doesn't get to utilize the power of the bankruptcy code to whittle down the number of dealers. Just maybe, Ford will make up in sales and national good will, what Chrysler and GM have lost this srping.

And, for Ford, hoping for the economy to pick up, perhaps it can serve as a beacon of freedom from "Government Motors."

What the market has told us thorugh the past several years is that the American automakers have found "profitability" in Europe, in South America, and in the large car and light truck markets in the North America. The area which has been glaringly unprofitable is in the area that Democrats seem to want to steer GM and Chrysler; small cars and unproven alternative fuels.

It bears repeating; just a few months ago, we saw Governor Granholm, Senator Stabenow and UAW President Ron Gettlefinger all declaring as a matter of fact, that a bankrupt automaker cannot sell cars and wouldn't survive. Bankruptcy, they said, was not an option.

Meanwhile, the editorial page of the Wall Street Journal, Senator Corker of Tennessee, Senator Shelby of Alabama, and even born-and-bred Detroiter Mitt Romney all said, to varying degrees of outrage formt the mainstream lliberal national media, that bankruptcy had to be considered; bankrutpcy would provide the legal tool to do things like help pare down the number of over-capacity dealerships.

So guess who had that part right, all along?

I guess you did Anonymous( I hate to recognize posters who comment under Anonymous )..of course I did not have an opinion on the issue of bankrutpcy or not....Now had I formed an opinion of course it would have been the correct one but since I did not form an opinion my omission really was an opinon in the affirmative which had I formulated and opinion I............lol,lol,lol

Thanks, Thrasher.

Yet another one of your cogent, exhaustively researched (by the many scholars at "The Plane Ideas Alternative Think Tank")contributions, written in compelling and impressive prose.

As always.

And, clearly, "making a difference."


I used that style of satrical prose just for you..I figured and I was correct of course ..you would love the cogent,exhaustively researched contribution written in compelling and impressive prose and of course as always and clearly as usual making a difference..


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