Comments on: Dude, The Market Figured That Out 6 Months Ago Before You Started Shoveling My Money At Them

By: tomw

tomw — Tue, 31 Mar 2009 18:19:57 +0000

Tim: the chapter 11 pause you rightfully consider as ripple causing can be avoided by a ‘pre-cooked’ bankruptcy. All the players agree (foot dragging allowed, but you are GONNA come to the table) finally, and the company goes bankrupt at 12:00pm, and emerges as 12:01pm. Presto-chango the bankruptcy has enabled re-writing of contracts, etc, it is just that it is all done beforehand. This was the scenario envisioned last fall before the first pork-fest, but was pooh-poohed the same as it is now.
Would you buy a car guaranteed by the government? Can you imagine the bureaucracy for getting reimbursed for warranty work? Oh, boy.
This pre-cook will also keep the Gummint from becoming the managers, though the current management will likely retain their mind set. Perhaps the Cypress Semiconductor guy [ old age brain fade prevents me remembering his name ] could be brought in to set the place aright?

tom

By: Tim

Tim — Mon, 30 Mar 2009 15:32:58 +0000

78% unlikely, and 64% very unlikely to buy cars from bankrupt auto companies. Additionally 82% unlikely to buy from a division being phased out. Steve Miller: "The U.S. bankruptcy system isn't built to handle anything as 'big, complex and politically sensitive' as a GM bankruptcy" Three questions: Where would the debtor-in-possession financing come from? Estimate US$40b per company, and the capital markets are still frozen. Where would the emerging recapitalization financing come from? This issue is why Delphi hasn't emerged from Chapter 11 yet. How do you prevent a cascade failure from toppling the tier 1 supplier base? Suppliers are paid on 45-60 net terms, and don't get cash up front for their fixed costs. A chapter 11 pause in payments from the OEMs to the suppliers would ripple down to the tier 1 base and cause them to default on their financial instruments and payments to the tier 2 supply base. While you are figuring DIP for the OEMs, find an additional US$10-20b in DIP financing for the most likely tier 1 suppliers; Visteon, Lear, and American Axle.

By: Joseph Hertzlinger

Joseph Hertzlinger — Sun, 29 Mar 2009 00:49:03 +0000

Wait a moment…

According to Malcolm Gladwell, college athletes frequently go into the financial-services sector after graduation.

Maybe that’s what happened to Wall Street…

By: ElamBend

ElamBend — Fri, 27 Mar 2009 23:22:14 +0000

Actually, I believe Obama did have one job for a year at a financial information publisher called Business International Corporation. He has, at various times alluded to this job saying he looked at Wall Street, but turned away from it. In reality, his job was essentially re-writing financial copy. Many of his former work mates, even fans, have said he’s embellished his role a bit.

see here:
http://sweetness-light.com/archive/did-obama-turn-down-a-wall-street-career

As to real business or making money, I think another part of Obama’s experience affects his judgment. The man himself is a millionaire thanks to his books. Yet, how he got that first deal is a bit of serendipity. An agent contacted him based upon a story about Mr. Obama being the first black president of the Harvard Law Review. After some machinations and changing agents, the book didn’t sell well, but was there when his political star took off. Based upon his celebrity it sold very well, he was able to get another deal and sell another book.

So think how he sees this. He has become a wealthy man based upon luck/serendipty and who his is. This dovetails nicely with his leftist worldview that most rich were either lucky or well connected (and certainly his Chicago political experience would have shown him some proof that this is true in many places). However, he’s never been exposed to the true entrepreneur and just doesn’t get it.

So, sorry Warren, all your talk about dealing with local governments, well we just know you’re gaming the system…;)

By: Mesa Econoguy

Mesa Econoguy — Fri, 27 Mar 2009 22:42:38 +0000

In fact, the section about costs and competitive products comes dead last in the Chrysler plan, almost as an afterthought.

Ah, yes, but you see, this is exactly how 1) Chrysler/Ford/GM currently operates, and 2) the government operates, so it is a â€œbusiness planâ€ to them.

Theyâ€™re perfect partners: no competition (of any consequence), no cost controls, free healthcare for their employees.

By: FloridaLotteryOfficialSite

FloridaLotteryOfficialSite — Fri, 27 Mar 2009 18:27:18 +0000

good article