Comments on: Why Bankruptcy For Autos But Not Banks? http://www.ritholtz.com/blog/2009/02/why-bankruptcy-for-autos-not-banks/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Tue, 14 Feb 2012 21:38:31 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: batmando http://www.ritholtz.com/blog/2009/02/why-bankruptcy-for-autos-not-banks/comment-page-1/#comment-147944 batmando Mon, 23 Feb 2009 20:18:50 +0000 http://www.ritholtz.com/blog/?p=19904#comment-147944 At this juncture, the only hopeful construction I can put on the Geithner apptmt and subsequent "actions" (and inactions) is that Obama is playing rope-a-dope with the TBTF asshats and when C, BAC, etc go to zero, suddenly Geithner et. al. will find the administration doing a volte-face. Hey, I can have my small hope, can't I? y'know some "change", what I thought I could believe in. At this juncture, the only hopeful construction I can put on the Geithner apptmt and subsequent “actions”
(and inactions) is that Obama is playing rope-a-dope with the TBTF asshats and when C, BAC, etc go to zero, suddenly Geithner et. al. will find the administration doing a volte-face.
Hey, I can have my small hope, can’t I? y’know some “change”, what I thought I could believe in.

]]> By: JoWriter http://www.ritholtz.com/blog/2009/02/why-bankruptcy-for-autos-not-banks/comment-page-1/#comment-147933 JoWriter Mon, 23 Feb 2009 19:46:57 +0000 http://www.ritholtz.com/blog/?p=19904#comment-147933 Why save the banks, esp C & BAC? Have you looked at the assets in state and union and corporate pension funds? Have you looked at the assets in university endowment funds? Have you looked at the assets in many mutual funds residing in millions of 401ks and IRAs? So you see, this has nothing to do with who bought whom (not arguing whether banks bought Congress), I rest my case. Why save the banks, esp C & BAC? Have you looked at the assets in state and union and corporate pension funds? Have you looked at the assets in university endowment funds? Have you looked at the assets in many mutual funds residing in millions of 401ks and IRAs?

So you see, this has nothing to do with who bought whom (not arguing whether banks bought Congress),

I rest my case.

]]> By: Urkel http://www.ritholtz.com/blog/2009/02/why-bankruptcy-for-autos-not-banks/comment-page-1/#comment-147927 Urkel Mon, 23 Feb 2009 19:20:29 +0000 http://www.ritholtz.com/blog/?p=19904#comment-147927 This is Obama's really big test: Fire Geithner. This is Obama’s really big test:

Fire Geithner.

]]> By: DL http://www.ritholtz.com/blog/2009/02/why-bankruptcy-for-autos-not-banks/comment-page-1/#comment-147919 DL Mon, 23 Feb 2009 18:41:13 +0000 http://www.ritholtz.com/blog/?p=19904#comment-147919 “Why Bankruptcy For Autos But Not Banks?” One can argue that the glass is “half full”. If Obama can get one out of two right, we should be thankful for that. “Why Bankruptcy For Autos But Not Banks?”

One can argue that the glass is “half full”. If Obama can get one out of two right, we should be thankful for that.

]]> By: DL http://www.ritholtz.com/blog/2009/02/why-bankruptcy-for-autos-not-banks/comment-page-1/#comment-147890 DL Mon, 23 Feb 2009 17:24:43 +0000 http://www.ritholtz.com/blog/?p=19904#comment-147890 Mish doesn't mince words: "Not only is Citigroup a black hole from which no taxpayer dollars can escape, but Geithner's brain is a black hole from which no intelligent thought can escape" http://globaleconomicanalysis.blogspot.com/ Mish doesn’t mince words:

“Not only is Citigroup a black hole from which no taxpayer dollars can escape, but Geithner’s brain is a black hole from which no intelligent thought can escape”

http://globaleconomicanalysis.blogspot.com/

]]> By: willid3 http://www.ritholtz.com/blog/2009/02/why-bankruptcy-for-autos-not-banks/comment-page-1/#comment-147878 willid3 Mon, 23 Feb 2009 16:16:28 +0000 http://www.ritholtz.com/blog/?p=19904#comment-147878 i suspect the difference in treatment (banks vs Autos) is strictly political. the banks tend to have more white collar workers (sort of) than the auto industry. and then there is that union thing. and besides when was the last time the government really cared about anybody but the rich any way? and while we have a new administration it still takes time for a new direction to take place (it has been only a month at most). its probably just a continuation of the wall street agenda of destroying the middle class (all the while redefining it in ways that make it unrecognizable). and after all they lead us into this mess, the rest of us need to rescue them from their mess. but don't rescue any body else. i suspect the difference in treatment (banks vs Autos) is strictly political. the banks tend to have more white collar workers (sort of) than the auto industry. and then there is that union thing. and besides when was the last time the government really cared about anybody but the rich any way? and while we have a new administration it still takes time for a new direction to take place (it has been only a month at most).
its probably just a continuation of the wall street agenda of destroying the middle class (all the while redefining it in ways that make it unrecognizable). and after all they lead us into this mess, the rest of us need to rescue them from their mess. but don’t rescue any body else.

]]> By: Hulkster http://www.ritholtz.com/blog/2009/02/why-bankruptcy-for-autos-not-banks/comment-page-1/#comment-147877 Hulkster Mon, 23 Feb 2009 16:14:30 +0000 http://www.ritholtz.com/blog/?p=19904#comment-147877 Autos have the preception of being plagued by permanent competitive disadvantage. Legacy costs, wages, etc. Only a BK will address impediments to sustainable operating profitability. Banks could eventually absorb their hangover losses with their core profitability. Banking is not fundamentally a money losing business. They don't have unions preventing them from doing downsizing and once they are right sized, they could feasibly turn it around. Their Fed borrowing costs are next to nothing. Give me $5 trillion at 1% and I'm sure I could turn them around. Not so with GM. Autos have the preception of being plagued by permanent competitive disadvantage. Legacy costs, wages, etc. Only a BK will address impediments to sustainable operating profitability.

Banks could eventually absorb their hangover losses with their core profitability. Banking is not fundamentally a money losing business. They don’t have unions preventing them from doing downsizing and once they are right sized, they could feasibly turn it around. Their Fed borrowing costs are next to nothing. Give me $5 trillion at 1% and I’m sure I could turn them around. Not so with GM.

]]> By: Dr. Kenneth Noisewater http://www.ritholtz.com/blog/2009/02/why-bankruptcy-for-autos-not-banks/comment-page-1/#comment-147865 Dr. Kenneth Noisewater Mon, 23 Feb 2009 15:32:55 +0000 http://www.ritholtz.com/blog/?p=19904#comment-147865 @AndrewShaw: Sorry, must disagree. The answer is actually: SHUT UP. ('Up Yours, Kid' is also acceptable.) @AndrewShaw: Sorry, must disagree. The answer is actually: SHUT UP.

(‘Up Yours, Kid’ is also acceptable.)

]]> By: PrahaPartizan http://www.ritholtz.com/blog/2009/02/why-bankruptcy-for-autos-not-banks/comment-page-1/#comment-147862 PrahaPartizan Mon, 23 Feb 2009 15:26:33 +0000 http://www.ritholtz.com/blog/?p=19904#comment-147862 Ny Stock Guy, actually you would have been more accurate if you had refined your prediction to Saint Patrick's Day 2008. That's when they went belly up. We'll just officially acknowledge it this year, 2009 Ny Stock Guy, actually you would have been more accurate if you had refined your prediction to Saint Patrick’s Day 2008. That’s when they went belly up. We’ll just officially acknowledge it this year, 2009

]]> By: Ny Stock Guy http://www.ritholtz.com/blog/2009/02/why-bankruptcy-for-autos-not-banks/comment-page-1/#comment-147861 Ny Stock Guy Mon, 23 Feb 2009 15:23:37 +0000 http://www.ritholtz.com/blog/?p=19904#comment-147861 Saint Patrick’s Day 2009, that is! Saint Patrick’s Day 2009, that is!

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