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It just gives me the willies
Varifrank —
There is nothing in the world that gives me the creeps more than when Conservatives use the word "fair".
Unless of course, when they use it more than once to make the same point.
What Would A GM Bankruptcy Mean?
Wizbang —
Jim Manzi at The Corner on National Review Online makes a critically important observation about whether or not it is fair to bail out or allow bankruptcy to ensue. Is this fair to the people who work at GM and will now have a deal changed after the fact? Well, when people sold parts to GM on credit, or employees (individually or via union negotiations) entered into labor contracts with GM, they undertook counterparty risk. That is, they were taking, in part, a bet about whether GM would actually be able to pay them what they are owed. This is also true for ...
Get a Grip, People.
The Sundries Shack —
Manzi is good; Manzi is wise . What would it mean to have GM go bankrupt? A change in ownership and a renegotiation of contracts. The factories, computers, office space, intellectual property and so forth that are now owned by GM would not disappear; they would basically become the property of GM’s creditors. These creditors would sell the assets to the highest bidder. Assuming there is economic value to be created by continuing to operate the company as a business, private equity or strategic investors would buy the assets, shut down some plants, fire some union and exempt ...
What's Wrong With Bankruptcy?
The Daily Dish | By Andrew Sullivan —
Manzi, as so often, cuts to the chase:
A bailout of GM would be a pure exercise of political power to
deliver taxpayer funds to one organized group of citizens at the
expense of the country as a whole. It should be avoided. Rewarding failure is the central characteristic of the Bush administration. Obama pledged to be the un-Bush. Don't do it! ...
More To Come
Power Line —
... continue. Michael Ramirez; click to enlarge:
Given the latest announcement by Secretary Paulson that none of the $700 billion appropriated by Congress will be used for the originally-stated purpose of purchasing distressed financial assets, it seems clear that neither the administration nor those in Congress who voted for the bailout had any idea what they were about.
As to the prospect of bailing out the auto industry, Jim Manzi says what needs to be said:
What would it mean to have GM go ...
Things Heard: e40v5
Stones Cry Out —
... So, to all you Mrs Palin despisers … a remark from her off the cuff … but do you agree or not?
Resurrection.
Loss of faith in a child … advice.
Here?
Top 10 in the dumps list from the right.
On that monastic violence.
On books 4 kids.
18 months after he quit doing his day job … he quits “officially”.
On not doing it.
"A Lemon of a Bailout"
Daimnation! —
... Big Three, if we can still call it that, bet the farm and pickups and SUVs - largely because of loopholes in the fuel-economy standards denounced by Krauthammer, ironically. When gas got really expensive earlier this year, they were left with thousands of vehicles nobody wanted to buy. There are many, many reasons why Detroit is in so much trouble, but a glut of unpopular small cars isn't one of them.
David Brooks also argues against a bailout, while NRO's Jim Manzi explains what a GM bankruptcy would actually mean:
What would it ...
