TOP 100 TRANSPORTATION AND LOGISTICS SITES
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| Government Intervention: 'Kill the Chicken to Scare the Monkey' Alpha Dinar submits:“Government forces out Wagoner at GM,” read the front page of the Wall Street Journal on Monday, March 30. I’m sure you’re wondering what that has to do with chickens and monkeys? According to my boss, there is an old Chinese saying which states, “Kill the chicken to scare the monkey.” The chicken is [[GM]]’s CEO, Mr. Wagoner. The monkey? CEOs of financial companies in the US. By ousting Mr. Wagoner, President Obama sent a strong message to the monkeys of US financials to participate in his TALF and PPIP government initiatives. If they don’t? They simply lose their jobs. The fact is that the government is the one with money and, consequently, the ones with the last say. The government already owns large stakes in various financials. As for financials it doesn’t have stakes in, they can merely convince the board that the CEO isn’t cooperating and that they will not receive any support as long as he’s there. The board will surely send the CEO jumping out of the window.Complete Story » seekingalpha.com |
Chrysler's Response to Indiana Pension Funds Tyler Durden submits: Amusing PR from Chrysler, in which the company tries to justify the presumably crappy outcome that those pushing for liquidation would get as a result of the "lack of bids" during the less than month long bankruptcy. Maybe Chrysler can also explain how any potential bidders were supposed to complete due diligence in the whopping week or so they had in order to outbid Fiat (FIATY.PK) in its stalking horse bid, which additionally had the blessing of the administration with a whole lot of taxpayer funded debt that will be eliminated subsequent to Good Chrysler's emergence. Maybe instead, Chrysler can provide some more color on the funding proposals that, under cross examination, emerged it had been pursuing. Zero Hedge reported about these, which emerged at the May 5 court hearing, and I quote: What is notable is that during a witness testimony in court today, a Chrysler staffer under oath said that Chrysler had previously been in discussions with Nissan, GM and Fiat for alternative value enhancing programs, which had a Net Present Value of $11 Billion, $36 Billion and 4 Billion, respectively.Complete Story » seekingalpha.com |
GM Bankruptcy Likely to Proceed According to Obama's Plans Edward Harrison submits:Judge Robert Gerber has given General Motors (GMGMQ.PK) approval to sell its assets under section 363 of the bankruptcy code. Last month I indicated that this 363 sale was more questionable than Chrysler’s and could meet more resistance in court. That has not happened and the GM bankruptcy looks likely to proceed according to the Obama Administration’s plans. I said “The Obama people are going to argue that GM is dependent on government monies to exist and that it cannot ‘survive the full plan process.’” The judge agreed with this reasoning as evidenced by the quote from the FT article below.Complete Story » seekingalpha.com |
Weekly Market Notes: At the Cusp of a Sluggish Recovery Ned Brines submits: September 8, 2009Prediction is very difficult, especially about the future.—Niels Bohr, Danish PhysicistWeekly percentage performance for the major indices based on last Friday’s official settlement...Complete Story » seekingalpha.com |
Cash for Clunkers: Here Comes the Hangover Mark J. Perry submits: "Cash for clunkers" might have "juiced up" new vehicle sales and provided some initial and temporary stimulus to the economy, but there are some secondary costs now surfacing in the "hangover" period:1. Shortage of cheap used vehicles and rising prices (see chart above). Complete Story » seekingalpha.com |