On Fri, 5 Dec 2008 00:01:02 -0500, "Ed Huntress"
wrote:
snip
Are you sure? A sell off of the Big Three would result in so much
displacement that car sales for the whole country are likely to tank, IMO.
The multiplier effect throughout the economy will cause many more to be laid
off or fired. And then there will be no reason to hire most of the fired
workers, because nobody's buying.
snip
-------------
Ed made a good case.

I sent the following email to my Congressmen. Feel free to use
any or all of it if you want to write your
senators/representative. Get their webmail at
http://www.house.gov/
http://senate.gov/

---------- start of email -----
Looks like we gotta' take at least some of the castor oil…

After watching the Congressional hearings on the C-SPAN website,
reading the "rescue plans" submitted by the "big three," and
discussing this at length with some very intelligent contributors
in several news groups, I have come to the conclusion that while
it will be very expensive and costly to the taxpayers to provide
loan guarantees and other funding, IT WILL BE MORE EXPENSIVE NOT
TO DO SO.

This does not mean that I accept the numbers that the automobile
companies have provided, nor do I approve of their highly
conditional, theoretical, hypothetical, provisional, and
qualified "re-structuring plans" filled with ambiguities and
"weasel words," that do not commitment them to any specific
actions or measurable goals.

AT THIS POINT THERE ARE NO GOOD OPTIONS, but the least
harmful/expensive alternative at this time appears to be the
allocation of 10 to 12 billion dollars to fund GM and Chrysler
until an adequate and detailed evaluation can be done, and the
new administration and Congress is installed. This can be taken
from any convenient/available "pocket," and the funding worked
out later.

It is critical that the actual financial condition of the
automotive companies be established and the
feasibility/plausibility of their projections and assumptions be
evaluated using GAAS/FASB accounting standards and accepted
forecasting techniques, during this 30 to 90 day "grace period,"
purchased at great taxpayer expense. This verified data could
then be used for a data driven decision on a company-by-company
basis in a calmer and less emergency/crisis environment. A joint
taskforce composed of qualified and senior personnel from the
GAO, IRS, SEC, and outside specialists as required, is suggested.

N. B. It will be vital to insure that *ALL* debts/obligations are
evaluated, for example Delphi's possible claims/interactions with
GM, and Visteon's possible claims/interactions with Ford. The
links between GM and Chrysler through GMAC, and GMAC's attempt to
become a "one bank holding company" should also be considered.
There are likely many more "off the books" obligations.

Assuming that the audit/verification is favorable, and additional
funding is warranted, it will be critical to eliminate the
"weasel words" from the "rescue/restructuring plans" and
establish firm, measurable goals, objectives, and mileposts, with
funds released only as these goals, objectives, mileposts, etc.
are met.

It is also critical that a "Board of Inquiry" be established to
determine how, and by whom, the domestic automotive industry was
driven into the ground, so that legislation and regulation can be
implemented to prevent any reoccurrence in this and/or other
industrial/economic sectors, with criminal referrals as may be
appropriate.
-----------------------


Unka' George [George McDuffee]
-------------------------------------------
He that will not apply new remedies,
must expect new evils:
for Time is the greatest innovator: and
if Time, of course, alter things to the worse,
and wisdom and counsel shall not alter them to the better,
what shall be the end?

Francis Bacon (1561-1626), English philosopher, essayist, statesman.
Essays, "Of Innovations" (1597-1625).