And Republicans they should do it quickly before the Democrats get in the frontseat.
Originally published by Mike DeVine as legal editor for The Minority Report on its Live Wire:
This is a brilliant idea, even if The One did think of it. It is what used to be called political victory for a more savvy GOP. Republican office holders, radio talk show hosts and columnists have been all over TV, radio and the Web advocating bankruptcy for bankrupt companies and rightly decrying any bailout that keeps union contracts in tact and that lets Reid, Pelosi, Franks and Dodd (The Three Horsemen and National Velvet of the American economic Apocalypse) run the auto industry like they run Amtrak and Fannie Mae.
The Loyal Opposition should show their loyalty to America and back up the President-Elect on his concept:
President-elect Barack Obama’s transition team is looking into a “prepackaged” bankruptcy for Detroit’s automakers as a possible solution to the industry’s financial crisis, Bloomberg News reported today, citing an unnamed source familiar with the matter.
A representative of Obama’s team has already contacted at least one bankruptcy law firm about the idea, according to the source.
In a prepackaged bankruptcy, a company would go into court with financing ready after reaching agreements with lenders, workers and suppliers on what each would give up and on a business plan, Bloomberg reports. Such a process would take substantially less time than a typical Chapter 11 bankruptcy.
Getting out front on this would also address the serious political concerns of Pat Buchanan for the GOP’s future:
Are Republicans aware of what they are about to do?
When workers, execs, engineers, dealers, salesmen and suppliers are all factored in, the Big Three employ 3 million people who contribute $21 billion a year to Social Security and Medicare, and $25 billion in federal income taxes. Add in all the businesses that depend on the auto industry, and we are talking about one-tenth of the U.S. labor force.
As columnist Tom Piatak of Chronicles and Takimag.com writes, 850,000 retirees, and their families, depend for pensions and health care on the Big Three. If they go under, the burden falls on us.
And to let the auto industry die is to write America out of much of the economic future of the planet.
Gamecock doesn’t buy all of Pat’s trade ideas, but he does agree that government policy has greatly burdened the auto industry and that both politically and economically, the GOP needs to be part of the solution.
Obama has given us a great opportunity to highlight a more conservative solution that the Democrats.
Read all of As GM Goes, So Goes the GOP
Mike DeVine’s Charlotte Observer, Examiner.com and Minority Report columns
“One man with courage makes a majority.” - Andrew Jackson
Gamecock, a very good article
Wubbies World Saturday, November 22nd at 9:25AM EST (link)This is a win win situation I would go along with as a solution. There is no down side that I am aware of in this.
I am definitely and seriously opposed to just giving them a “bridging loan” until their cash flow improves. They bad need a dramatic restructure to solve their problems!
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Government policy has greatly burdened the auto industry
izoneguy Saturday, November 22nd at 9:37AM EST (link)And many other industries as well.
The GOP should demand as part of any BIg 3 BailOut.
Unfettered energy exploration. If the Big 3 or any auto
maker wants to keep selling the cars they make today then an energy policy of drill here and yesterday should be rammed down the dems throat. Yes we should continue to explore alternative sources of energy and develop the cars that will lessen our dependence on oil. That won’t happen unless we develop our own energy resources.
Stop the insane talk of global warming and cap & trade.
This one issue alone will put the auto makers out of business.
Why bail them out only to kill them during the Obama administration?
Relax the fuel standards for now. Keep them where their are at for at least the next 2 years. This will give everyone a breather.
Stop talking about windfall profits tax. This only encourages the oil companies to pull in.
So, democrats want a bailout for their UAW buddies??
Well it cost you more than just a swipe of the pen.
“When the government fears the people, there is liberty. When the people fear the government, there is tyranny.”
Thomas Jefferson
GC...tentative support...but I will recommend..
Attack Mode Saturday, November 22nd at 10:20AM EST (link)Think of this as a trust but verify situation.
The “plan” is bare bones right now from what I read. And we all know that the details are wherein the devil lies.
So the question to me now is:
Where is the financing going to come from
What concessions will we force the UAW to accept
Will this resolve root causes
With those three question in mind, and still needing to be answered, I would give only a tentative support for this “plan”.
“Land of the Free and Home of da Whopper” Peter Griffin…Family Guy
conform and celebrate diversity….or else!!!
Steel-Belted Radial Right Winger
“I’ll create 5 million jobs from out of unicorn farts and pixie dust” Justatron paraphrasing Obamessiah…yes I love it that much.
thanks WW and I would say all financing must be loans- more
Mike gamecock DeVine Saturday, November 22nd at 4:06PM EST (link)later
Mike DeVine’s Examiner.com, Charlotte Observer and The Minority Report columns
“One man with courage makes a majority.” - Andrew Jackson
agreed Aa, I am talking about endorsing the concept, primarily
Mike gamecock DeVine Saturday, November 22nd at 4:07PM EST (link)To get ahead of the Dems against the bail out with congress as CEO.
great points and more later
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“One man with courage makes a majority.” - Andrew Jackson
huge amens IG and you are one of the best
Mike gamecock DeVine Saturday, November 22nd at 7:44PM EST (link)commenters here at RS!
Mike DeVine’s Examiner.com, Charlotte Observer and The Minority Report columns
“One man with courage makes a majority.” - Andrew Jackson
Thanks GC...
izoneguy Sunday, November 23rd at 11:22AM EST (link)…you are not to shabby yourself!
“When the government fears the people, there is liberty. When the people fear the government, there is tyranny.”
Thomas Jefferson
Only if it includes
SteveLA Sunday, November 23rd at 12:14PM EST (link)The Obama pre-packaged bankruptcy only works for me IF and a big IF, part of the plan is a roll back of the UAW contract provisions that are killing the auto industry:
Make the “Job Bank” mirror Federal unemployment rules, no more 2 years at 95 percent pay.
No paying off of the existing contract commitments to retirees with funds from this bail out.
Reduction of retiree commitments to no more generous than offered to Federal Civil servants.
Total labor rates (pay+benefits+retiree promises) approximately equal to Non Unionized US domestic producers.
US tax code changes to make interest paid on auto loans from US produced cars tax deductible once again, with sun set provisions for a fixed period of time.
While the Obama plan looks good, devil is in the details, and R’s can push for some key points outlined above that Democrats may not embrace.
______________________________________
Competency over ideological purity
we agree - I am advocationg embracing the concept
Mike gamecock DeVine Sunday, November 23rd at 1:18PM EST (link)of a prepackaged b/r, not any details that have yet to be provided.
It appears that Obama is rejecting the Congress as CEO model. That is what I think is significant and that the GOp should join Obama in opposition to what Pelosi-Reid want.
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“One man with courage makes a majority.” - Andrew Jackson
Specifics v Generalized
SteveLA Sunday, November 23rd at 1:42PM EST (link)game,
No worries then, but I am suggesting that Republicans in Congress adopt a robust series of practical conservative enhancements to the Obama plan instead of the generalized case. The path back to victory is being specific about conservative principles, not hand waving or sitting on the sidelines because of generic philosophical differences.
______________________________________
Competency over ideological purity
If BHO endorses or just allows ANYTHING
Achance Sunday, November 23rd at 1:50PM EST (link)that looks like a concession to UAW, it will be a “Nixon to China” event, and I just might begin to reform my opinion of him. One thing I think is for sure; it is in the genes of union and community organizers to not allow employers or Republicans any credit for anything good. They’ll abandon even good things to avoid the employer or a Republican getting any credit.
In Vino Veritas
SteveLA, US tax code changes to make interest paid on auto loans from US produced cars...
mbecker908 Sunday, November 23rd at 2:20PM EST (link)So, how do you treat Toyotas, Nissans and BMWs that are manufactured in the US by non-union labor?
Or are we jigging the tax code only in favor of the UAW?
And, FWIW, messing with the tax code is a really bad idea.
US Produced
SteveLA Sunday, November 23rd at 2:27PM EST (link)Key phrase here, US produced, including Honda, Toyota or others that are produced in US plants using US workers.
Yes it would help manufactures who don’t need help, but it would help US workers, which is who my thought was aimed at. Sell more cars made in the US, UAW and non UAW, more people working.
By the way, if the packaged bankruptcy cleans up the abuses of the UAW and the Big Three, why not throw a bone in terms of taxes to all US producers of automobiles?
______________________________________
Competency over ideological purity
Are you saying you
redneck_hippie Sunday, November 23rd at 3:40PM EST (link)are hoping the big 3 rescue plan includes more goodies to union workers?
I’m looking for concessions “from” the UAW.
“We must not lose our faculty to dare, especially in dark days.” - Churchill in March, 1942.
Remember NY-23.
how about these specifics for starters
Mike gamecock DeVine Sunday, November 23rd at 4:17PM EST (link)http://www.redstate.com/diaries/gamecock/2008/nov/22/v-i-day-and-the-loyal-opposition/
Mike DeVine’s Examiner.com, Charlotte Observer and The Minority Report columns
“One man with courage makes a majority.” - Andrew Jackson
If anybody thinks the UAW is going to cave
mbecker908 Sunday, November 23rd at 4:57PM EST (link)and not be supported by the Dems - see Card Check - to organize the other manufacturers they’re living in an alternate universe. The UAW won’t even show up at the table without a hostile BK filing. They don’t have to. And, depending upon the new Labor Department, they might not end up giving up anything in that case either.
I think you missstated. Obama conceeding to union demands would be dog bites man-nt
Mike gamecock DeVine Sunday, November 23rd at 7:35PM EST (link)Mike DeVine’s Examiner.com, Charlotte Observer and The Minority Report columns
“One man with courage makes a majority.” - Andrew Jackson
Anything that the UAW would view as
Achance Sunday, November 23rd at 7:58PM EST (link)a concession. Sorry, I live in a world of shoptalk about this stuff.
I don’t see how any Democrat can back any plan that the UAW would see as requiring them to make ANY concession. They think they own the Democrat Party, and they’re probably right.
In Vino Veritas
How about funding some debt from income from new oil leases?
GregInFla Sunday, November 23rd at 11:12PM EST (link)Tie the new oil exploration lease income at home to the funding of the loans to Big 3. Call it the Transportation Energy Omnibus Act of 2008 of some such thing.
– A true evolutionist would let endangered species die off. Anyone care to change sides?
Support Marco Rubio for US Senate.
great idea-nt
Mike gamecock DeVine Monday, November 24th at 1:47AM EST (link)Mike DeVine’s Examiner.com, Charlotte Observer and The Minority Report columns
“One man with courage makes a majority.” - Andrew Jackson
While Buchanan is generally a french fry
E Pluribus Unum Monday, November 24th at 11:00AM EST (link)He’s got a good point here. Repubs should do everything possible in this lame duck session to not do any further actions that would allow Dems to hang the Dem-caused global recession around the necks of Repubs.
Carthago delenda est
That won't go over so well...
CFPeterson Monday, November 24th at 1:14PM EST (link)I don’t think you could get unfettered energy exploration as a part of the deal.
What I’d like to see is a mandatory re-organization of the UAW pension and health plans to be more inline with the rest of America. My bet is if most people saw what retired autoworkers get for benefits they’d puke. Its that extra $2000 per car just for benefits that make the Big 3 so uncompetitive.
Reid screwed the pooch
Freedoms Truth Monday, November 24th at 2:31PM EST (link)Why arent we hanging the incompetence of Reid around the necks of the Democrats?
There was a bipartisan consensus to use money already allocated to help the big 3.
Yes, pre-pack ch-11 with massive UAW concessions and a serious revamping of the GM business model is the way to go to save the company long-term.
Do that, and have Govt chip in the $25 billion ALREADY allocated. Anything beyond that is a waste of money.
Freedoms Truth,
Travis Monitor - http://travismonitor.blogspot.com
Austin, TX
GC...what is with the X-mas crap....
Attack Mode Monday, November 24th at 2:46PM EST (link)Christmas is named CHRISTmas for a reason…you know that. X-mas is a denial of the main import of the day.
“Land of the Free and Home of da Whopper” Peter Griffin…Family Guy
conform and celebrate diversity….or else!!!
Steel-Belted Radial Right Winger
“I’ll create 5 million jobs from out of unicorn farts and pixie dust” Justatron paraphrasing Obamessiah…yes I love it that much.
exactly EPU and we can also endear ourselves to some voters
Mike gamecock DeVine Monday, November 24th at 3:34PM EST (link)in Michigan in the process.
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“One man with courage makes a majority.” - Andrew Jackson
UAW caved in 2006 when they re-negotiated the current K
Mike gamecock DeVine Monday, November 24th at 3:38PM EST (link)They made major concessions down to $15/hr and no pension for entry level.
Lack of money concentrates the mind.
Mike DeVine’s Examiner.com, Charlotte Observer and The Minority Report columns
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As unemployment in MI nears 10.0
E Pluribus Unum Monday, November 24th at 5:14PM EST (link)At some point, their voters will see where their bread truly is buttered. Free markets, free choice.
Carthago delenda est
I think the incompetence of Reid, Pelosi, Frank and even
Mike gamecock DeVine Monday, November 24th at 5:26PM EST (link)The One will soon be self evident.
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good points - nt
Mike gamecock DeVine Monday, November 24th at 5:32PM EST (link)Mike DeVine’s Examiner.com, Charlotte Observer and The Minority Report columns
“One man with courage makes a majority.” - Andrew Jackson
You mean the congressional leaders
redneck_hippie Monday, November 24th at 5:33PM EST (link)who are in charge of the house and senate which the Obama voters believe are controlled by Republicans?
“We must not lose our faculty to dare, especially in dark days.” - Churchill in March, 1942.
Remember NY-23.
the UAW did not cave in 2006--the concessions were quite minor compared to the problems
JSobieski Tuesday, November 25th at 1:01AM EST (link)nt
There will be no new drilling
charliehall Tuesday, November 25th at 1:10AM EST (link)at $50/barrel. All the “drill, baby, drill” chants will not convince oil companies to sink a single well if they don’t think the price will stay high enough.
Of course, if the oil companies go belly up from the lower oil prices, the federal government can bail them out, assume equity stakes, and force them to drill even uneconomical wells.
Charlie Hall
LOL - yes, them - nt
Mike gamecock DeVine Tuesday, November 25th at 8:38AM EST (link)Mike DeVine’s Examiner.com, Charlotte Observer and The Minority Report columns
“One man with courage makes a majority.” - Andrew Jackson
X-mas still has Christ in it
youngling Tuesday, November 25th at 11:31AM EST (link)Since X is the Greek letter Chi (pronounced Kai I believe) which is the first letter of Christ (a Greek word), it is a lot like saying MLK Day instead of Martin Luther King, Jr. Day…
Just saying…
“Politics is supposed to be the second oldest profession. I have come to realize that it bears a very close resemblance to the first.”
Ronald Reagan
They need to cave more, but to eliminate pensions for new hires
Mike gamecock DeVine Tuesday, November 25th at 2:05PM EST (link)and to reduce the starting wage to $15/hr is huge. Maybe not a cave?
But hey, I am no apologist for that union. They have conspired with management to wreck the northern auto industry.
Mike DeVine’s Examiner.com, Charlotte Observer and The Minority Report columns
“One man with courage makes a majority.” - Andrew Jackson
youngling...
Attack Mode Tuesday, November 25th at 2:45PM EST (link)yeah uh that isn’t what the X in X mas is representative of…and I find MLK day to far less important that Christmas…and I assume MLK would as well.
Just sayin..
“Land of the Free and Home of da Whopper” Peter Griffin…Family Guy
conform and celebrate diversity….or else!!!
Steel-Belted Radial Right Winger
“I’ll create 5 million jobs from out of unicorn farts and pixie dust” Justatron paraphrasing Obamessiah…yes I love it that much.
Big 3 weren't and aren't doing a lot of hiring, so it was kind of irrelevant
JSobieski Tuesday, November 25th at 2:51PM EST (link)The two tiered approach first manifested itself during the Delphi bankruptcy. Given that 99% of employees fall under the old rules, its window dressing for all practical purposes.
I hear ya - nt
Mike gamecock DeVine Tuesday, November 25th at 5:20PM EST (link)Mike DeVine’s Examiner.com, Charlotte Observer and The Minority Report columns
“One man with courage makes a majority.” - Andrew Jackson
Over 1.4 million youtube views
redneck_hippie Tuesday, November 25th at 8:30PM EST (link)Gotta play this at least once a week. It gets funnier with repetition.
How Obama Got Elected
Er, make it over 1.5 million.
“We must not lose our faculty to dare, especially in dark days.” - Churchill in March, 1942.
Remember NY-23.
They know the price will rise sooner rather than later
Mike gamecock DeVine Friday, November 28th at 1:16PM EST (link)given demand and supply worldwide, after the recession. The key to getting them to drill is removing legal impediments (moratoriums) and deterrants (ESA and other lawsuits).
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“One man with courage makes a majority.” - Andrew Jackson