Comments on: Prepackaged Bankruptcy for Automakers http://www.ritholtz.com/blog/2008/11/prepackaged-bankruptcy-for-automakers/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Sat, 21 Nov 2009 11:00:47 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: ottovbvs http://www.ritholtz.com/blog/2008/11/prepackaged-bankruptcy-for-automakers/comment-page-1/#comment-128062 ottovbvs Sat, 22 Nov 2008 17:52:10 +0000 http://www.ritholtz.com/blog/?p=10384#comment-128062 They are clearly learning about what the options are. BR you're wrong about bankruptcy as an option, packaged or otherwise. The notion that packaged means you enter and exit swiftly is an illusion. There are going to be a million and one issues, lawsuits and god knows what to resolve which means they will be stuck there for months. While this is going on their market share will collapse and revenue along with it. These guys are still making 40% of the cars in the US, do we really want to see this disappear because this is what will happen. What the bankruptcy advocates don't get is that autos are NOT commodities like airline tickets. There will be a flight to quality. BR assuming GM was in C11 would you go and blow $50k on an Escalade? To ask the question is to answer it. That said. It's not going to happen. They will hang on until January 20 and then the new admin will rescue them on onerous terms but Obama will be seen as the hero of MI, IL, OH, IN and PA. They are clearly learning about what the options are. BR you’re wrong about bankruptcy as an option, packaged or otherwise. The notion that packaged means you enter and exit swiftly is an illusion. There are going to be a million and one issues, lawsuits and god knows what to resolve which means they will be stuck there for months. While this is going on their market share will collapse and revenue along with it. These guys are still making 40% of the cars in the US, do we really want to see this disappear because this is what will happen. What the bankruptcy advocates don’t get is that autos are NOT commodities like airline tickets. There will be a flight to quality. BR assuming GM was in C11 would you go and blow $50k on an Escalade? To ask the question is to answer it.

That said. It’s not going to happen. They will hang on until January 20 and then the new admin will rescue them on onerous terms but Obama will be seen as the hero of MI, IL, OH, IN and PA.

]]> By: Rightline http://www.ritholtz.com/blog/2008/11/prepackaged-bankruptcy-for-automakers/comment-page-1/#comment-127986 Rightline Fri, 21 Nov 2008 22:32:29 +0000 http://www.ritholtz.com/blog/?p=10384#comment-127986 The thread is probably dead but what I came up with is to buy AXL on hopes of a pre pack GM-F bk with suppliers kept not only whole , but seeing certainty return to payments with gov't backing. The thread is probably dead but what I came up with is to buy AXL on hopes of a pre pack GM-F bk with suppliers kept not only whole , but seeing certainty return to payments with gov’t backing.

]]> By: DL http://www.ritholtz.com/blog/2008/11/prepackaged-bankruptcy-for-automakers/comment-page-1/#comment-127911 DL Fri, 21 Nov 2008 17:35:51 +0000 http://www.ritholtz.com/blog/?p=10384#comment-127911 jonpublic @ 11:12 “Am I the only one that read the bloomberg study saying that a bankruptcy would cost the taxpayers $100 - $200 billion?” This is just more fear mongering. In the words of Ronald Reagan, “just say no”. jonpublic @ 11:12

“Am I the only one that read the bloomberg study saying that a bankruptcy would cost the taxpayers $100 – $200 billion?”

This is just more fear mongering.

In the words of Ronald Reagan, “just say no”.

]]> By: DL http://www.ritholtz.com/blog/2008/11/prepackaged-bankruptcy-for-automakers/comment-page-1/#comment-127907 DL Fri, 21 Nov 2008 17:24:22 +0000 http://www.ritholtz.com/blog/?p=10384#comment-127907 If Obama actually insists on a bankruptcy - - prepackaged or otherwise - - that’ll show that he has a lot more spine than I thought he did. (On the other hand, if he gives them $125B in the process, that won't be good). If Obama actually insists on a bankruptcy – - prepackaged or otherwise – - that’ll show that he has a lot more spine than I thought he did.

(On the other hand, if he gives them $125B in the process, that won’t be good).

]]> By: eren http://www.ritholtz.com/blog/2008/11/prepackaged-bankruptcy-for-automakers/comment-page-1/#comment-127904 eren Fri, 21 Nov 2008 17:11:25 +0000 http://www.ritholtz.com/blog/?p=10384#comment-127904 how about CDS s? how will this effect the banks, aig maybe? how about CDS s? how will this effect the banks, aig maybe?

]]> By: CNBC Sucks http://www.ritholtz.com/blog/2008/11/prepackaged-bankruptcy-for-automakers/comment-page-1/#comment-127902 CNBC Sucks Fri, 21 Nov 2008 17:10:31 +0000 http://www.ritholtz.com/blog/?p=10384#comment-127902 As a registered Republican, I have made it a point to make fun of those TWO Barry the Commies, Obama and Ritholtz, every time I can for the next eight years. I will abide by my party's policies and philosophies, no matter how history has demonstrated that they have been disastrous for my nation and countrymen, cuz I'm a registered Republican. I will ridicule Obama every chance I get no matter how much that black bastard's intelligence, thoughtfulness, detail orientation, commitment to execution, courage, equanimity, morality, sense of fair play, inclusiveness, and general character and leadership save me and my loved ones from economic and other peril, and deliver my nation into prosperity and peace. I have resolved to curse Barry Obama every time I eat steak and lobster and drink a nice, cold, expensive imported beer in the party atmosphere of six years from now, when the bad times of 2008 are long forgotten. Hell, I have decided to ridicule Obama now, before he even starts office. Cuz I'm a registered Republican. As a registered Republican, I have made it a point to make fun of those TWO Barry the Commies, Obama and Ritholtz, every time I can for the next eight years. I will abide by my party’s policies and philosophies, no matter how history has demonstrated that they have been disastrous for my nation and countrymen, cuz I’m a registered Republican. I will ridicule Obama every chance I get no matter how much that black bastard’s intelligence, thoughtfulness, detail orientation, commitment to execution, courage, equanimity, morality, sense of fair play, inclusiveness, and general character and leadership save me and my loved ones from economic and other peril, and deliver my nation into prosperity and peace. I have resolved to curse Barry Obama every time I eat steak and lobster and drink a nice, cold, expensive imported beer in the party atmosphere of six years from now, when the bad times of 2008 are long forgotten. Hell, I have decided to ridicule Obama now, before he even starts office.

Cuz I’m a registered Republican.

]]> By: bdg123 http://www.ritholtz.com/blog/2008/11/prepackaged-bankruptcy-for-automakers/comment-page-1/#comment-127893 bdg123 Fri, 21 Nov 2008 16:55:57 +0000 http://www.ritholtz.com/blog/?p=10384#comment-127893 Help is coming. It's simply a matter of how and under what terms. Robert Reich is one of Obama's advisors and you might point to what he has just written on his blog as a potential outcome. Help is coming. It’s simply a matter of how and under what terms. Robert Reich is one of Obama’s advisors and you might point to what he has just written on his blog as a potential outcome.

]]> By: BKM http://www.ritholtz.com/blog/2008/11/prepackaged-bankruptcy-for-automakers/comment-page-1/#comment-127875 BKM Fri, 21 Nov 2008 16:27:55 +0000 http://www.ritholtz.com/blog/?p=10384#comment-127875 that article is about liquidation not restructure that article is about liquidation not restructure

]]> By: BKM http://www.ritholtz.com/blog/2008/11/prepackaged-bankruptcy-for-automakers/comment-page-1/#comment-127872 BKM Fri, 21 Nov 2008 16:25:17 +0000 http://www.ritholtz.com/blog/?p=10384#comment-127872 Pre packaged BK is the only way. A straight loan is a short term bailout of the UAW not the motor companies, they will die anyway if they don't restructure. No matter what happens, the taxpayer is going to take hit. As long as the companies are restructured to be competative, as a taxpayer I am willing to pay a little extra to keep that massive industry in this country. Whatever happens with the big 3 WILL BE the canary in the coalmine as for as Obama is concerned. Will he turn his back on special interest(UAW) and do what is best for this country and restructure. ie."change you can believe in" OR will he bail out the UAW (short term)and screw the taxpayer..same shit different term. This will be his first defining moment. Pre packaged BK is the only way. A straight loan is a short term bailout of the UAW not the motor companies, they will die anyway if they don’t restructure. No matter what happens, the taxpayer is going to take hit.
As long as the companies are restructured to be competative, as a taxpayer I am willing to pay a little extra to keep that massive industry in this country.

Whatever happens with the big 3 WILL BE the canary in the coalmine as for as Obama is concerned. Will he turn his back on special interest(UAW) and do what is best for this country and restructure. ie.”change you can believe in” OR will he bail out the UAW (short term)and screw the taxpayer..same shit different term.

This will be his first defining moment.

]]> By: jonpublic http://www.ritholtz.com/blog/2008/11/prepackaged-bankruptcy-for-automakers/comment-page-1/#comment-127869 jonpublic Fri, 21 Nov 2008 16:12:30 +0000 http://www.ritholtz.com/blog/?p=10384#comment-127869 Am I the only one that read the bloomberg study saying that a bankruptcy would cost the taxpayers $100 - $200 billion? http://www.bloomberg.com/apps/news?pid=20601087&sid=ad09qxbiElB8&refer=home Am I the only one that read the bloomberg study saying that a bankruptcy would cost the taxpayers $100 – $200 billion?

http://www.bloomberg.com/apps/news?pid=20601087&sid=ad09qxbiElB8&refer=home

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