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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (459058)	2/24/2009 1:54:37 PM
From: TimF	Respond to of 1573448

This Task Force Will Make Detroit More Efficient? [Henry Payne] Detroit, Mich. — The federal terms of the multi-billion-dollar General Motors and Chrysler loans, Washington officials tell us, demand a fundamental restructuring of imperiled U.S. auto companies in order to make them viable again. Rep. Thaddeus McCotter (R., Mich.), for example, says that, while bankruptcy for these companies “is not doable,” the federal “workout” now in progress is the next best thing. To this end, the Obama administration has convened a Presidential Task Force on the Auto Industry to oversee this “out-of-court” bankruptcy. Last week, the White House announced the makeup of its task force — and it’s a long way from what bankruptcy negotiations look like. Prof. Lynn LoPucki, a bankruptcy expert at UCLA Law School, says a typical auto bankruptcy would involve: - Bankruptcy court - GM management - The United Autoworkers Union - Bondholders - Bank creditors - Auto dealers By contrast, the Presidential Task Force announced by the White House Friday will serve in lieu of a bankruptcy judge and looks like this: Members — Treasury Secretary Tim Geithner — National Economic Council Director Larry Summers — Secretary of Transportation — Secretary of Commerce — Secretary of Labor — Secretary of Energy — Chair of the President’s Council of Economic Advisers — Director of the Office of Management and Budget — Environmental Protection Agency Administrator — Director of the White House Office of Energy and Climate Change Senior Advisor on Auto Issues at the Treasury Department — Ron Bloom, Senior Advisor on the Auto Industry, Department of Treasury Official Designees of the Members of the Presidential Task Force — Diana Farrell, Deputy Director, National Economic Council — Gene Sperling, Counselor to the Secretary of Treasury — Jared Bernstein, Chief Economist to Vice President Biden — Edward Montgomery, Senior Advisor, Department of Labor — Lisa Heinzerling, Senior Climate Policy Counsel to the EPA Administrator — Austan Goolsbee, Staff Director and Chief Economist of the Economic Recovery Advisory Board — Dan Utech, Senior Advisor to the Secretary of Energy — Heather Zichal, Deputy Director, White House Office of Energy and Climate Change — Joan DeBoer, Chief of Staff, Department of Transportation — Rick Wade, Senior Advisor, Department of Commerce Surveying this monstrosity, Prof. LoPucki comments that “I don’t think this task force is intended to represent anyone but the government.” LoPucki is quick to add that the task force is perhaps less unwieldy than it looks as the “designees” will represent the “members” and likely will be the ones at the table. Still, the UCLA prof continues, “this is a highly political process. The objective seems to be to continue the existence of GM, shrinking it only moderately. The government plans to pay whatever that takes. So whenever some party balks at making concessions, the government picks up the tab.” An example? When GM failed, due to UAW intransigence, to produce three terms sheets required by the February 17 deadline, the government’s response was to state on D-day that GM would get its $4 billion loan payment anyway. “In this out-of-court process, majorities of creditors have no power to bind minorities by voting,” concludes LoPucki. “Any individual creditor who refuses to take a haircut doesn't get one.” Your tax dollars at work. planetgore.nationalreview.com

To: TimF who wrote (459058)	2/24/2009 2:19:45 PM
From: tejek	Read Replies (2) \| Respond to of 1573448

GM has not been chronically non profitable Yes it has been. Chronically means every year like the airlines. GM has gotten into financial trouble the last two-three years. Typically, in spite of its less than popular model line, the company has made money. Recently John Tamny wrote an article, Pull the Plug on General Motors (GM), in which he discusses the various reasons why it is essential to let GM fail. So we thought we would give you a graphical representation of GM's historical ability to create shareholder value, along with a Value Expectations scenario of what GM must generate to sustain its current price. I don't know who John Tamny is but its real easy to "pull the plug" when your job is not on the line. Tim, let me make this very clear. This country can not afford to lose GM. One thing I have learned about conservatives is that you all have real difficulty seeing the forest for the trees. Right now, the US can't afford to lose anything of value and GM has considerable value. And if the current CEO can turn things around like some claim he is doing, then it will have even more value.