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Off-Topic Discussion => General Discussion => Topic started by: BloodEagle on April 30, 2009, 10:09:38 pm

Title: The Hell Is Going On?
Post by: BloodEagle on April 30, 2009, 10:09:38 pm
http://money.cnn.com/2009/04/30/news/companies/chrysler_bankruptcy/?postversion=2009043009

 :wtf:
Title: Re: The Hell Is Going On?
Post by: Nuclear1 on April 30, 2009, 10:11:03 pm
Yeah, that and GM is going to be phasing Pontiac out over the next two years as well.
Title: Re: The Hell Is Going On?
Post by: peterv on April 30, 2009, 10:12:42 pm
Social-capitalistic economic ethics.
Title: Re: The Hell Is Going On?
Post by: IceFire on April 30, 2009, 10:31:48 pm
This is what happens when a bunch of suits run a company into the ground but the company is so key to the economy that its total failure is worse than propping it up through any means necessary.
Title: Re: The Hell Is Going On?
Post by: Blue Lion on April 30, 2009, 11:03:19 pm
Company A becomes financially unstable, requests money from government to keep operating.

Government gives money to Company A to operate for a short amount of time, tells it to go work on it's sale to Company B.

Company A and Company B fail to reach an agreement on sale of Company A to Company B.

Company A runs out of money the government gave it.

Company A files for bankruptcy.

Pretty simple actually.
Title: Re: The Hell Is Going On?
Post by: FUBAR-BDHR on April 30, 2009, 11:07:35 pm
Not what happened. 

Some of Company A's creditors were holding out for more money instead of taking the same deal as the rest of them. 

Company A files for bankruptcy to reorganize.  Creditors holding out get the shaft. 

Company A and B reach deal that may get company A out of bankruptcy. 

Company B can't own company A until the taxpayers are paid back.
Title: Re: The Hell Is Going On?
Post by: Blue Lion on April 30, 2009, 11:09:30 pm
How did what you said conflict with what I said?  :wtf:
Title: Re: The Hell Is Going On?
Post by: FUBAR-BDHR on April 30, 2009, 11:26:40 pm
Read it.  The agreement that fell through wasn't between company A and company B it was between company A and it's creditors (mostly small hedgefunds).  If they hadn't held out for more money and taken the same deal as the other creditors then no bankruptcy would have been filed.  They got greedy and will now get burnt. 
Title: Re: The Hell Is Going On?
Post by: Solatar on May 01, 2009, 12:27:07 am
As I understand it, this kind of bankruptcy doesn't mean Chrysler is going to go out of business and go away forever.

Seems like a little "time out" to re-organize and re-think things isn't such a bad thing.
Title: Re: The Hell Is Going On?
Post by: Liberator on May 01, 2009, 01:41:33 am
Which also means that the only person who has ANY say in how Chrysler will be dealt with is the presiding Federal Judge.

Not Obama, not your favorite senator, not the UA-****ing-W, not the CEOs and not the "Creditors"(those evil evile! hedgefunds everyone seems to hate so much as well as private citizens) and not even the Pope.  The judge is protected from any kind of political or financial pressure by law, he is free to redraw contracts and rearrange personnel as feels is needed.

Chrysler will hopefully emerge from this on firm ground, rested and ready for the push into the 21st century.
Title: Re: The Hell Is Going On?
Post by: Grizzly on May 01, 2009, 02:38:25 am
Quote
Chrysler will hopefully emerge from this on firm ground, rested and ready for the push into the 21st century.

It would be much better if they were in that state 9 years ago...
Title: Re: The Hell Is Going On?
Post by: Flipside on May 01, 2009, 02:42:43 am
It's not the companies I feel sorry for, it's the employees :(
Title: Re: The Hell Is Going On?
Post by: Liberator on May 01, 2009, 03:13:48 am
Quote
Chrysler will hopefully emerge from this on firm ground, rested and ready for the push into the 21st century.

It would be much better if they were in that state 9 years ago...

Once again...spilled milk.

I see a lot of that going on lately.
Title: Re: The Hell Is Going On?
Post by: Kosh on May 01, 2009, 03:44:17 am
It's not like this is the first time Chrystler went bust......
Title: Re: The Hell Is Going On?
Post by: Sushi on May 01, 2009, 09:29:26 am
This is what happens when a bunch of suits run a company into the ground but the company is so key to the economy that its total failure is believed by some to be worse than propping it up through any means necessary.

Fixed. :)

I've heard people say that Chrysler et al. are "too big to fail," but I have yet to see an argument that convinces me that this is actually the case.

IMO, bailouts have much more to do with politicians trying to show they're Doing Something About It and less to do with actual economic prudence.
Title: Re: The Hell Is Going On?
Post by: BlueFlames on May 01, 2009, 10:33:00 am
Honestly, this is one issue where I'm absolutely unable to focus on the politics.  I've been too excited about the prospect of the new version of the Fiat 500 showing up in Chrystler dealerships to really give half a damn about how it gets to North America.
Title: Re: The Hell Is Going On?
Post by: Charismatic on May 01, 2009, 01:45:59 pm
its total failure is worse than propping it up through any means necessary.

Enough adrenalin shots will kill you, tho.