Pre Packaged Bankruptcy

[GTAHVIT]

Originally Posted by SilverTurtle

Dodd and Conkers pretty much said that straight out yesterday... admitted that they were grilling the Big3 because of the heat they took over the banks... which, imo, is just stupid... and its why we should demand resignations from most of the elected Congress.

+1

[NAHURRY]

got my response back from congress today, this is what it said.

Dear Danny,



You were good to give me your thoughts on recent financial rescue packages. I voted for the financial market rescue, but I can't support the proposed auto industry rescue package. The auto industry needs cultural transformation to be viable in the future and not just tinkering to get taxpayer bailout funds.



The proposed $25 billion auto industry rescue is aimed at a single industry. That industry is vital to America, but so was a robust textile industry. The things that ail the domestic car producers-archaic union work rules and unsustainable salary and benefit packages-don't ail successful manufacturers like BMW. This crisis calls for all players to see it in their best interest to remake themselves into a wholly different industry and shed legacy costs and thinking. A prepackaged bankruptcy option may be the only way to cleanly break from the past.



The $700 billion financial market rescue, in contrast, was an effort to prevent a systemic collapse of the banking system on which we all rely. In the Great Depression the government was slow to act, and the Federal Reserve Board kept a tight money policy. Many economists believe that those mistakes made the Depression worse than it might have been. Hopefully, the quick and unprecedented actions by the federal government (President Bush and the Congress acting together) will keep this downturn from becoming catastrophic.



Thanks again for sharing your comments. For more information on today's top issues, please visit the Fourth District Web site at www.inglis.house.gov.







This mailing was prepared, published and mailed at taxpayer expense.



Best regards,

Bob Inglis

[camarolt76]

Originally Posted by in a hurry

got my response back from congress today, this is what it said.

Dear Danny,



You were good to give me your thoughts on recent financial rescue packages. I voted for the financial market rescue, but I can't support the proposed auto industry rescue package. The auto industry needs cultural transformation to be viable in the future and not just tinkering to get taxpayer bailout funds.



The proposed $25 billion auto industry rescue is aimed at a single industry. That industry is vital to America, but so was a robust textile industry. The things that ail the domestic car producers-archaic union work rules and unsustainable salary and benefit packages-don't ail successful manufacturers like BMW. This crisis calls for all players to see it in their best interest to remake themselves into a wholly different industry and shed legacy costs and thinking. A prepackaged bankruptcy option may be the only way to cleanly break from the past.



The $700 billion financial market rescue, in contrast, was an effort to prevent a systemic collapse of the banking system on which we all rely. In the Great Depression the government was slow to act, and the Federal Reserve Board kept a tight money policy. Many economists believe that those mistakes made the Depression worse than it might have been. Hopefully, the quick and unprecedented actions by the federal government (President Bush and the Congress acting together) will keep this downturn from becoming catastrophic.



Thanks again for sharing your comments. For more information on today's top issues, please visit the Fourth District Web site at www.inglis.house.gov.







This mailing was prepared, published and mailed at taxpayer expense.



Best regards,

Bob Inglis

It certainly would not shock me if Congress decided to go the route of the pre-packaged bankruptcy. I think there is a lot of feeling that that will be what is required to convince the industry to make the level of changes that will be required to bring the US Auto Industry back from the brink. Still I hope that bankruptcy is avoided. I worry that bankruptcy could lead to a long delay in the start of production of the Camaro. Other real concerns is that how many people will want to buy a car from a bankrupt company?:flag2::flag2:

[MerF]

So the supposed loss of a meaningless textile industry...that would be one of those things we have to outsource for, right? Which sends money overseas?

Sheesh.

[The_Blur]

Originally Posted by camarolt76

That is true. And I have to wonder if the banks bailout is not the single largest contribitor to the bad position the big 3 are in right now. I think the reason the big 3 are seeking a low interest loan from the government is due to the fact that they now do not even have the option to get a loan for the needed money from the banks.:flag2::flag2:

Originally Posted by SilverTurtle

Dodd and Conkers pretty much said that straight out yesterday... admitted that they were grilling the Big3 because of the heat they took over the banks... which, imo, is just stupid... and its why we should demand resignations from most of the elected Congress.

Originally Posted by MerF

Ugh.

Originally Posted by gtahvit

+1

Those are my sentiments exactly.