Instead of throwing cash at the company, why not offer to back up the warranty with a federal guarantee for every car sold during GM’s Chapter 11 reorganization? New cars are extremely reliable and the true cost of the warranty is probably close to $500 (source). GM is currently delivering 170,000 cars per month. If GM imploded and nobody purchased any of its brands or the purchasers would not honor the old warranties, the Feds would be on the hook for something like $85 million for every month that GM was being reorganized. If the Chapter 11 reorganization lasted for 9 months, we’re talking about less than $1 billion of exposure or 1/50th of the cost of what Congress is currently contemplating.
No, the sad part is that the real bailout plan is so anti-Free Market I can't believe Republicans are discussing it with straight faces (except a couple of them that are getting pretty red-faced about it).
Oh yes, the bailout plan is such a pile. That it is anti-fm is just the start. But do you expect a lot of improvement from the coming years of one-party government? Any improvements?
Notably absent from his speech was any talk about what the U.S. might do to bail out the troubled auto industry or the debate over a second U.S. stimulus package.
"The crisis was not a failure of the free market system," Mr. Bush said. "And the answer is not to try to reinvent that system."
... "I'm a market-oriented guy, but not when I'm faced with the prospect of a global meltdown," Mr. Bush said.
вот ведь незадача -- впервые за многие годы (десятилетия?) появилась возможность того, что всякая нежизнеспособная пакость отомрет сама по себе... но нет же, будем спасать, выкупать, откупать и перекупать...
интересно, что закончится первым -- жалелка или выкупалка?
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Instead of throwing cash at the company, why not offer to back up the warranty with a federal guarantee for every car sold during GM’s Chapter 11 reorganization? New cars are extremely reliable and the true cost of the warranty is probably close to $500 (source). GM is currently delivering 170,000 cars per month. If GM imploded and nobody purchased any of its brands or the purchasers would not honor the old warranties, the Feds would be on the hook for something like $85 million for every month that GM was being reorganized. If the Chapter 11 reorganization lasted for 9 months, we’re talking about less than $1 billion of exposure or 1/50th of the cost of what Congress is currently contemplating.
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Oh wait, I stand corrected
Yeeeeaah - makes perfect sense.
Re: Oh wait, I stand corrected
Re: Oh wait, I stand corrected
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интересно, что закончится первым -- жалелка или выкупалка?
Re: Oh wait, I stand corrected
Re: Oh wait, I stand corrected
"George W. Bush, who is president of the United States"
That's an epitomy of unpopular president, we still have to be reminded after 8 years in office.
VB
Re: Oh wait, I stand corrected
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