http://blog.usw.org/2009/03/11/qa-with-auto-industry-expert-william-j-holstein/ USW Fighting Globally For Workers' Dignity Thu, 19 Nov 2009 15:28:17 -0800 http://wordpress.org/?v=2.8.4 hourly 1 http://blog.usw.org/2009/03/11/qa-with-auto-industry-expert-william-j-holstein/comment-page-1/#comment-98 GilbertV Wed, 06 May 2009 08:32:20 +0000 http://blog.usw.org/?p=449#comment-98 In December of 2008, the United States was declared to be in recession since December of 2007. It created too much buzz as why would it happen to the most powerful country in the world. Some experts say that it is because of financial crisis that was made worse by mounted of debts because of irresponsible lending practices. Many houses were also subjected to foreclosures leaving a lot of Americans homeless and jobless. And many companies already cut off employees or opted to cease their operation. Even huge companies declared bankruptcy just like the Lehman Brothers, GM and Chrysler. Chrysler bankruptcy has been subject of debate and rumor for months, but it isn't speculative anymore. A Chrysler bankruptcy is now inevitable, and more to the point, they have already filed. The Chrysler bailout, several billion dollars worth, wasn't enough debt relief, so they have filed for Chapter 11 bankruptcy, as they couldn't get cash advance loans large enough to stop it. The government, now a primary stakeholder, has urged a prearranged bankruptcy, so that the filing is short lived and the company reemerges as a leaner, meaner animal ready to compete in the market. The <a title="Chrysler Bankruptcy Sets Stage for Court War" href="http://personalmoneystore.com/moneyblog/2009/04/30/chrysler-bankruptcy-court-war/" rel="nofollow">Chrysler bankruptcy</a>, while unpleasant, might provide them with the debt consolidation they need. In December of 2008, the United States was declared to be in recession since December of 2007. It created too much buzz as why would it happen to the most powerful country in the world. Some experts say that it is because of financial crisis that was made worse by mounted of debts because of irresponsible lending practices. Many houses were also subjected to foreclosures leaving a lot of Americans homeless and jobless. And many companies already cut off employees or opted to cease their operation. Even huge companies declared bankruptcy just like the Lehman Brothers, GM and Chrysler. Chrysler bankruptcy has been subject of debate and rumor for months, but it isn’t speculative anymore. A Chrysler bankruptcy is now inevitable, and more to the point, they have already filed. The Chrysler bailout, several billion dollars worth, wasn’t enough debt relief, so they have filed for Chapter 11 bankruptcy, as they couldn’t get cash advance loans large enough to stop it. The government, now a primary stakeholder, has urged a prearranged bankruptcy, so that the filing is short lived and the company reemerges as a leaner, meaner animal ready to compete in the market. The Chrysler bankruptcy, while unpleasant, might provide them with the debt consolidation they need.

]]> http://blog.usw.org/2009/03/11/qa-with-auto-industry-expert-william-j-holstein/comment-page-1/#comment-65 gspencer Thu, 12 Mar 2009 19:20:20 +0000 http://blog.usw.org/?p=449#comment-65 Is there anything of value going to be left after the auto industry members have bled their companies to death (bankruptcy)? What is their balance sheet net worth after you remove the value of all intangible assets such as goodwill? The banks probably have mortgage lien on the title to most of the remaining assets anyway. If they are allowed to the public feed trough again this time, they will surely return on a regular basis. Should we continue Auto Industry bad behavior and outright theft of company money with taxpayer funds? Who is going to buy a vehicle from a bankrupt auto manufacturer when the bankruptcy court will allow the manufacturer out of their warranty contracts with the vehicle purchaser? It is too late for Chapter 11 reorganization. Any Taxpayer funds given to the US Auto Industry will only encourage the continuation of the arrogant, stupid, and selfish bad business policies of the US Auto Industry executives and employees. Do not let these same highly paid incompetent executives continue their perks, private jet airplanes, stupid business decisions, and etc. with taxpayer money. These are the same selfish people that are responsible and should be fired, not rewarded with free money from the taxpayer. Let them go bankrupt so other parties can buy their assembly plants and re-start these plants efficient automobile manufacturing operations. Maybe we have to let the Big 3 Executives disappear with the large amounts of money that they took from the US Auto Industry, but do not let them have any Taxpayer Funding to continue their bad business practices and personal thievery. The big 3 automakers are already in debt up to their ears. Let them all disappear, especially as a lesson to all of the other financial geniuses that caused these problems. Are these Taxpayer Billions for the Auto Industry going to fund the golden parachutes and bonuses of the auto industry executives that caused the crisis? Should taxpayer money pay off the bank loans that occurred when these financial geniuses borrowed money to pay stock dividends, in order to artificially drive up the stock prices, which personally enriched themselves through their stock option plans? How can we get rid of these financial geniuses that caused these problems without costing the taxpayer a whole lot of his/her hard earned tax money? The US Auto industry is going bankrupt, and this bailout just postpones the dates of the formal bankruptcies. Are there any more Lee Iacocca type people in that industry that could revive these sick Auto Manufacturing companies from their impending deaths? Can he come out of retirement? They do not need any more Arthur Anderson or Enron Type Financial Genius Master Criminals to manage their affairs. Is there anything of value going to be left after the auto industry members have bled their companies to death (bankruptcy)? What is their balance sheet net worth after you remove the value of all intangible assets such as goodwill? The banks probably have mortgage lien on the title to most of the remaining assets anyway. If they are allowed to the public feed trough again this time, they will surely return on a regular basis. Should we continue Auto Industry bad behavior and outright theft of company money with taxpayer funds? Who is going to buy a vehicle from a bankrupt auto manufacturer when the bankruptcy court will allow the manufacturer out of their warranty contracts with the vehicle purchaser? It is too late for Chapter 11 reorganization. Any Taxpayer funds given to the US Auto Industry will only encourage the continuation of the arrogant, stupid, and selfish bad business policies of the US Auto Industry executives and employees. Do not let these same highly paid incompetent executives continue their perks, private jet airplanes, stupid business decisions, and etc. with taxpayer money. These are the same selfish people that are responsible and should be fired, not rewarded with free money from the taxpayer. Let them go bankrupt so other parties can buy their assembly plants and re-start these plants efficient automobile manufacturing operations. Maybe we have to let the Big 3 Executives disappear with the large amounts of money that they took from the US Auto Industry, but do not let them have any Taxpayer Funding to continue their bad business practices and personal thievery. The big 3 automakers are already in debt up to their ears. Let them all disappear, especially as a lesson to all of the other financial geniuses that caused these problems. Are these Taxpayer Billions for the Auto Industry going to fund the golden parachutes and bonuses of the auto industry executives that caused the crisis? Should taxpayer money pay off the bank loans that occurred when these financial geniuses borrowed money to pay stock dividends, in order to artificially drive up the stock prices, which personally enriched themselves through their stock option plans? How can we get rid of these financial geniuses that caused these problems without costing the taxpayer a whole lot of his/her hard earned tax money? The US Auto industry is going bankrupt, and this bailout just postpones the dates of the formal bankruptcies. Are there any more Lee Iacocca type people in that industry that could revive these sick Auto Manufacturing companies from their impending deaths? Can he come out of retirement? They do not need any more Arthur Anderson or Enron Type Financial Genius Master Criminals to manage their affairs.

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