OBAMA Says , BUY American

[Dolphin]

And at the same time Brings FIAT cars to America ???


Explain this to Me !!!

[E_]

These fiat Cars will be part of the Chrysler corporation and will be US built. They company making them will be owned 55% by the United Auto Workers of America then a bit smaller percent by Chrysler and then a even smaller percent by Fiat.

Sounds like a pretty good deal to me. Already from what I understand on the national news some people that follow Obama went to Chrysler dealerships and bought a new American Chrysler/Dodge vehicle since they saw the president backs them. Some of why apparently were previous owners of foreign made vehicles.

[Dolphin]

I do not think that it will come out that way E.

If the Union ends up owning the majority of stock ??? What a very sad Day

[E_]

Well I agree the union should not have the most but that is what was lined out last night.

[$parechange]

d@mn unions have been running the company for years. Lets see how they fair when the monkey is on thier back. Unions is what got the car folks in trouble to start with. Did I mention I hated unions.

[Dolphin]

What Obama is presenting is illegal and IF allowed will re write the Law's for Bankruptcy

[Dolphin]

What Obama is presenting is illegal and IF allowed will re write the Law's for Bankruptcy

Quote, NAT.


It isn't the absolute value or percentage recovery that is at issue here.

The issue is this: do secured creditors get more than unsecured creditors in a BK situation? The law is quite clear on this: Yes. Secured creditors are senior to unsecured creditors, ie, they're first in line to make a claim on the remaining cash, and they're first in line to make claims on liquidated value.

The Obama administration wanted to stand the law on its ear and tell the secured creditors that they were going to receive substantially less recovery than the UAW workers were By law, the UAW (and their pension plan) are on the tier of unsecured creditors. The Obama administration wanted to stiff the secured creditors into taking 29%, giving the UAW 50%+. Sorry, that's just not right under the law.

The funds managing the secured credit are under other fiduciary and legal responsibilities to press for the best recovery they can for their investors. Do the secured creditors have a reasonable belief that they can recover more money for their investors by going into BK than from the Obama plan? Yes, any competent BK lawyer would say so (and many are saying so). So the secured creditors that were not government-owned by virtue of having taken TARP money from the Treasury are pursuing a course of action that is not only legal, it is required by the law.



This buttresses my point of last fall that we should have not bailed out the auto companies. We should have shoved them into court with a pre-pack and gotten to this point, right where we are now, but back in December when the companies still had some operating cash.

All the money we taxpayers have thrown into these two companies until now has been as good as burned in a bonfire. This whole excercise has been a fruitless one of propping up the UAW to this point - and in the end, here's the fact: a whole lot of people are going to be laid off. Period, end of discussion. People have to cop the clue that much of the auto industry's sales until now have been propped up with easy credit for the consumer. That's over and done. The 16+ million unit/year market is going to be a 10 million unit/year market. There's no way around that, for anyone - not GM, not Toyota, not Honda, not Ford, not Chrysler. The sales numbers released yesterday prove my point. The sales numbers released from the German/European auto companies prove my point.

A whole lot of dealers have to be shut down, a whole lot of manufacturing capacity has to be shut down, a whole lot of employees in the entire auto industry will have to be laid off. Everything before this week was an avoidance of the realization of these facts. The UAW needs to wake up, smell the coffee and realize that they're gone, they're done, the US auto market has shrunk by about 40% and that the halcyon days of the early 1970's are not coming back.

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[Lock5]

The only reason that the UAW is coming out of this a 55% owner is due to their pensions is the major creditor, with that being said the UAW will be looking to sell these shares just as soon as they can, they will not be taking any risk with the pensions, and they are smart enough to know that there will have to be incredible restructuring/cuts for Chrysler to be a profitable company again. Once they start dumping their share of Chrysler I assume that Fiat will be the majority shareholder.

[E_]

I sure hope that is not the case. Maybe a company buy back will be possible. Isn't that what they did in the 80s?

[Dolphin]

http://blogs.abcnews.com/politicalpunch ... -atto.html