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nytimes.com - 11/19/2008

Op-Ed Contributor: Let Detroit Go Bankrupt

— nytimes.com — A managed bankruptcy may be the only path to the fundamental restructuring the auto industry needs. >... (more) Op-Ed Contributor: Let Detroit Go Bankrupt

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tnr.com - 11/15/2008

Panic in Detroit

— tnr.com — General Motors has come to Washington, begging for a $25 billion bailout to keep it and its... ailing Detroit counterparts going next year. But nobody seems too thrilled about the prospect. Liberals dwell on the companies' gas-guzzling sport-utility ... (more) Panic in Detroit

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corner.nationalreview.com - 11/17/2008

Detroit: Same Old, Same Old

— corner.nationalreview.com — Andrew Sullivan points to an article by Jonathan Cohn in the current TNR arguing for the proposed... automotive bailout. The core of Cohn's argument is that the Big 3 are turning around, and that the bailout will give them time to complete their ... (more) Detroit: Same Old, Same Old

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Do not bail out the Detroit Three
TigerHawk — NYU finance professor David Yermack absolutely crushes the arguments in favor of bailing out the Detroit Three automakers. Teaser: In 1993, the legendary economist Michael Jensen gave his presidential address to the American Finance Association. Mr. Jensen's presentation included a ranking of which U.S. companies had made the most money-losing investments during the decade of the 1980s. The top two companies on his list were General Motors and Ford, which between them had destroyed $110 billion in capital between 1980 and 1990, according to Mr. Jensen's calculations. I was a ...

Microblog 2008-11-25
Overlawyered — ... ]. Claim: with $ sunk since ‘80, GM and Ford could have closed own plants and bought all shares of Honda, Toyota, Nissan and VW [David Yermack, WSJ via ...

Chrysler Won't Pay Back Government Money Loaned So Far.
The Volokh Conspiracy — ... financing. He said the fact that Chrysler isn't paying what is owed should be a warning that the $15.4 billion loaned to General Motors by Treasury since December, as well as any bankruptcy financing it might need, is also at risk. "Certainly there are red flags," he said. Even the 3.2 billion loaned by the Feds just last week will not be paid back, though we might recover something from the liquidation of Chrysler Financial. David Yermack wrote in the Wall Street Journal last fall that it would have been better if the government had simply written a check to each worker ...