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me thinks 2 1/2 million out of work in one fell swoop would be a fitting grande finale to the reign of the bushmen!

especially if they all take a bus to washington to 'have a beer' with you-know-who...

jeez, this wait for jan 20 is s-t-r-e-t-c-h-i-n-g out like a guitar string ready to....snap.

'The history of public debt is full of irony. It rarely follows our ideas of order and justice.' Thomas Piketty

by melo (melometa4(at)gmail.com) on Fri Dec 12th, 2008 at 06:48:47 AM EST
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But GM and Chrysler won't just vaporize off the face of the planet. There is a certain demand for new cars, and since a big chunk of the supply is from the Detroit companies they will still have a business six months from now. It will just be a much smaller business.

Plus, car dealerships are completely independent from the car companies, so whether a given dealer can hang on or not depends on local conditions, not the total size of the manufacturer. So the dealerships won't vaporize, either.

I suspect that the executives at GM and Chrysler have already set up their golden parachute contracts so that they are protected (e.g., end-of-year bonus delivered in cash the week before bankruptcy is declared). Then it is simply a matter of reorganizing, which consists of closing perhaps half of the plants and "laying off" those workers.

After that, you just operate under "don't need to make a profit" bankruptcy rules for three or four years, taking down any possibility of profit by the other manufacturers--just as has happened in the air transport industry that also has excess capacity.

by asdf on Fri Dec 12th, 2008 at 09:22:29 AM EST
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oh, i agree totally, there is no reason on god's green earth why these companies could not start turning healthy profits within a few short years, but you'd have to give the CEO position to Devilstower, lol!

meanwhile back at the SUV ranch...

'The history of public debt is full of irony. It rarely follows our ideas of order and justice.' Thomas Piketty

by melo (melometa4(at)gmail.com) on Fri Dec 12th, 2008 at 10:17:47 AM EST
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