Weekly News via Email
   Set as homepage | Add to favorites | Customer Service | Subscribe Now | Place an Ad | Contact Us | Sitemap Wednesday, 10.01.2014
Classifieds
News Archive
Su Mo Tu We Th Fr Sa
 1  2  3  4
 5  6  7  8  9  10  11
 12  13  14  15  16  17  18
 19  20  21  22  23  24  25
 26  27  28  29  30
Online Extras
Site Services
Around Bend
Outdoor Fun
Travel Info
Shop Local




Members Of



Poll: Today's Live Poll
Email to a friend | Print this | PDF version | Comments (0 posted) 
  Blogger |   del.icio.us |   digg |   newsvine

Apr 03,2009
Taking a chance on bankruptcy
by The Indianapolis Star

Four months and $17.4 billion in taxpayer support have evaporated since the Bush administration bought the argument that a bankruptcy filing by one or more of Detroit's Big 3 would mean the end of the U.S. auto industry.

Thankfully, President Barack Obama on Monday signaled that he's ready to take that chance given the severe problems that continue to plague General Motors and Chrysler.

Now, Obama must follow through on his ultimatums, which allowed Chrysler a mere 30 days to forge a deal with Fiat and General Motors Corp. 60 days to secure concessions from the United Auto Workers and bondholders. Failure by the automakers to meet the administration's deadlines would end the stream of federal dollars now keeping the companies afloat.

Chrysler appears to have the easier route. Fiat has telegraphed that it's ready, with $6 billion in taxpayer assistance thrown in as a sweetener, to move forward with a merger.

GM, in contrast, must not only persuade creditors to accept steep write-downs on debt but also gain significant concessions from union workers. Bankruptcy appears to be GM's most realistic avenue for locking in such concessions. It also offers the best chance for the company to achieve long-term viability.

In addition to the billions in taxpayer dollars apparently wasted on GM and Chrysler, there's much to dislike about how both the Bush and Obama administrations have handled this challenge. The former president, fearing that one or more bankruptcies would drag the nation's economy into a pit, was too lenient in holding the companies accountable for their mistakes.

Obama has swung too far in the other direction. The White House forced General Motors CEO Rick Wagoner out of his job over the weekend. Wagoner certainly had his faults, but even Michigan's Democratic Gov. Jennifer Granholm described the departing executive as a "sacrificial lamb.'' Worse, the thought that the federal government is now selecting corporate CEOs is alarming.

As with the financial services sector, one of the government's top goals must be to extricate itself from the deep intrusion into the marketplace as quickly as possible.

Toward that end, Obama must stand firm with the deadlines he set this week. The bailouts must soon end, and the markets, not bureaucrats, allowed once again to pick winners and losers.

Reprinted From The Indianapolis Star. Distributed By Creators Syndicate Inc.

663 times read

Related news
Obama says auto industry 'must not vanish' by UPI posted on Mar 30,2009

Plan amounts to a de facto government takeover by The Detroit News posted on Apr 03,2009

Give GM, Chrysler some breathing room by The Detroit News posted on Mar 20,2009

A blunt instrument by A blunt instrument posted on Apr 10,2009

Backfires in Motown by The Indianapolis Star posted on Mar 04,2009

Did you enjoy this article? Rating: 4.64Rating: 4.64Rating: 4.64Rating: 4.64Rating: 4.64 (total 14 votes)

Market Information
Breaking News
Most Popular
Most Commented
Featured Columnist
Horoscope Guide
Aquarius Aquarius Libra Libra
Aries Aries Pisces Pisces
Cancer Cancer Sagittarius Sagittarius
Capricorn Capricorn Scorpio Scorpio
Gemini Gemini Taurus Taurus
Leo Leo Virgo Virgo
Local Attractions
Bend Visitors & Convention Bureau
Bend Visitors & Convention Bureau

Mt. Bachelor Resort
Mt. Bachelor Resort

Les Schwab Ampitheater
Les Schwab Ampitheater

Deschutes County Fairgrounds
Deschutes County
Fairgrounds

Tower Theatre
Tower Theatre

The High Desert Museum

Advertisements



Deschutes County

Google  
  Web    BendWeekly.com
© 2006 Bend Weekly News
A .Com Endeavors, Inc. Company.
All Rights Reserved. Terms under
which this service is provided to you.
Please read our Privacy Policy. Contact us.
Bend Weekly News & Event Guide Online
   Save the Net
Advertisement
External sites open in new window,
not endorsed by BendWeekly.com
Subscribe in NewsGator Online
Add to Google Add to MSN Add to My AOL
What are RSS headlines?