• 18 Nov 2008 at 5:04 PM

Oh No She Di’Int

By

Peter Morici, a University of Maryland professor in a bow-tie, says that giving the Big Three automakers will “create another AIG.” (He also says if Chapter 11 is put off, “the industry will continue to shrink.”)

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Comments (78)

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  1. 1
    Posted by guest | November 18, 2008 at 5:11 PM

    Two words. Pontiac Aztek.

  2. 2
    Posted by guest | November 18, 2008 at 5:14 PM

    Why the bum tag?

  3. 3
    Posted by guest | November 18, 2008 at 5:14 PM

    Footage from the bailout discussions from capital hill:
    http://hobochili.org/chili/?p=112

  4. 4
    Posted by Lowly Assistant | November 18, 2008 at 5:14 PM

    I’m getting misty-eyed. Anyone remember the chevy/GM Typhoon? A pickup truck with a motherfucking corvette engine… With a little bit of gold and a pager…

  5. 5
    Posted by Bess Levin | November 18, 2008 at 5:18 PM

    @2 it says ‘burn’ as in it’s a diss to be likened to AIG.

  6. 6
    Posted by guest | November 18, 2008 at 5:18 PM

    giving them what

  7. 7
    Posted by guest | November 18, 2008 at 5:18 PM

    Friends, I just signed up for this great IB training course at the Swiss Finance Academy!

  8. 8
    Posted by guest | November 18, 2008 at 5:18 PM

    He’s an idiot. The trade with AIG is simple – AIG wrote tons and tons of CDS’s and took in way too little premium to cover them. That cost them their credit rating and they are forced to pony up collateral all over the planet.
    If the US keeps all of the assets underlying the AIG CDS’s from going belly up over the next 3-5 years, AIG will get all that money back, and can repay the US taxpayer.
    Get it? We (the taxpayer) is all in now. If GM goes down, AIG has to pony up.
    GM has no hope of paying back a $25B loan. GM is a social program that makes some cruddy cars. Letting GM die is just like cutting off Medicare. We should euthanize GM and friends but in a way that doesn’t totally fuck up the rest of the economy and society in the meanwhile.
    If you let GM crash hard, it’s going to cause panic in the financial markets, screw over their counterparties, move their pensions to the PBGC, and put a lot of people on the short-term welfare rolls. So you, Mr. & Mrs. Taxpayer are going to pick up the tab for that. Better to wind them down quietly and not deal with the costs of Chapter 7.

  9. 9
    Posted by guest | November 18, 2008 at 5:20 PM

    @5 Bess- my bad-*adjusting monitor*-thx

  10. 10
    Posted by StillNoCouch | November 18, 2008 at 5:25 PM

    I’m sure somebody cried when they stopped making AMC Pacers too.

  11. 11
    Posted by Clown Capital | November 18, 2008 at 5:47 PM

    @#8
    Jay-Z: “Get ya weight up; Not ya’ hate up…”

  12. 12
    Posted by guest | November 18, 2008 at 5:51 PM

    I believe Umbro has a meeting with congress later this week. Sure hope tax-payer funds can make them relevant as well.

  13. 13
    Posted by guest | November 18, 2008 at 5:53 PM

    So far as job creation is concerned, let them dig ditches with spoons for $50 an hour. Same busy work, same job creation, same waste of tax-payer money.

  14. 14
    Posted by guest | November 18, 2008 at 6:12 PM

    Morici can’t even get (isolated) AIG stories right. Besides – it’s a ludicrous comparison, AIG has actually been profitable in the last couple decades.

  15. 15
    Posted by guest | November 18, 2008 at 6:13 PM

    #12- umbro got acquired by nike. they don’t have delusions of grandeur and still make brilliant boots.

  16. 16
    Posted by guest | November 18, 2008 at 6:16 PM

    @13
    “Infrastructure improvements”
    What do you think all these auto workers are going to be doing in two years?

  17. 17
    Posted by guest | November 18, 2008 at 6:26 PM

    @2,5,
    Or Burn as in cash. As in massive massive shitpiles of cash. Burning.

  18. 18
    Posted by guest | November 18, 2008 at 6:30 PM

    @ #17
    #5 has a name: Author.
    So I’m going to venture a wild guess that this was the actual intent of the burn tag.

  19. 19
    Posted by guest | November 18, 2008 at 6:38 PM

    Who is the good Senator who is currently ripping the beggars apart?

  20. 20
    Posted by guest | November 18, 2008 at 6:41 PM

    Chris Dodd applauds and commends paying workers at idle factories 95% of the usual wages and all benefits!!!!!!!!

  21. 21
    Posted by guest | November 18, 2008 at 6:41 PM

    Anybody remember those Oldsmobiles (or Buicks, maybe, can’t recall, they all were all the same) from the 80’s (I think) where the rear axle would get a few inches out of alignment and you’d have all the mean-looking old-fart white-hairs driving sideways down the street? God, nobody designed cars like GM. And we don’t want to help these guys? What’s this great country coming too!?

  22. 22
    Posted by guest | November 18, 2008 at 7:33 PM

    You’ll notice no one is talking about the engineers who build the components of alleged automobiles produced by GM, Ford and Crashler.
    The engineers have gotten off too easy. OK, who was the lead engineer designing the Chevy Astro Van?????????
    They ought to get him/her on illegal dumping charges for all the spontaneous disassembling those cars did on America’s highways.

  23. 23
    Posted by guest | November 18, 2008 at 7:39 PM

    @18 no your wrong. #17 is wright it could mean burn as in cash that’s burning that reffeerres to the burns tag in the header. Do you dont need to venture a wild gues.
    SPODE

  24. 24
    Posted by guest | November 18, 2008 at 9:00 PM

    Misunderstanding of AIG aside, Morici made the auto industry guys look like fools in that hearing.

  25. 25
    Posted by guest | November 18, 2008 at 9:03 PM

    AIG was done in by hubris. On the CDS front, they were on only one side of the trade – writing protection on the super senior portion of CDOs (isn’t an insurance company supposed to know something about risk management?). They were also complete pricks when it came to negotiating CSA agreements. They were AAA at the time and most of their swap counterparties were AA or A. The collateral posting requirements are what did them in. I guess they assumed they would be Aaa forever.
    Too bad because there are actually some good people still there.

  26. 26
    Posted by guest | November 18, 2008 at 9:41 PM

    I switched my Impala from gold to chrome daytons.

  27. 27
    Posted by guest | November 18, 2008 at 11:03 PM

    25
    It’s still incredible to me that AIG apparently never did any risk management on thier collateral posting, despite that being potentially fatal to the company. But from everything that’s come out, that’s exactly what they did.

  28. 28
    Posted by guest | November 19, 2008 at 1:12 AM

    GO TERPS!
    TAKIN’ IT TO THE HEART OF THE RETARDED CAR INDUSTRY CHIEFTAINS. BOOYASHAKA!
    Morici did a great job asking probing questions today on Capitol Hill that the panel couldn’t evade. Smith School represent! Haha.

  29. 29
    Posted by guest | November 19, 2008 at 9:03 AM

    @1 says it all. Bottom line – the Detroit 3 make piece of shit cars that NO ONE WANTS TO BUY! If it wasn’t for fleet sales they all would have been dead years ago.
    By the way, did anyone see CNBC this morning with Jerome York and Mike Jackson? GM has 8K people a day in the jobs bank? What a joke.
    This is their own doing. Let them rot.

  30. 30
    Posted by guest | November 19, 2008 at 9:11 AM

    #18 = Back Office = Inability to think outside a small shallow mildewy box.

  31. 31
    Posted by guest | November 19, 2008 at 9:25 AM

    If GM fails, there won’t be any dunk riders left by 2020.

  32. 32
    Posted by guest | November 19, 2008 at 9:57 AM

    Let’s play a game called “why we shouldn’t give US automakers money.” I’ll list some clues, and you figure out the answer. Here we go.
    Chevy Cavalier – Toyota Corolla
    Pontiac Aztec – Honda Element
    Dodge Neon – Honda Civic
    Chevy Malibu Maxx – Toyota Camry
    Chevy Astro – Toyota Sienna
    Buick (anything) – Acura (anything)
    Chevy S10 – Toyota Tacoma
    jobs bank – no jobs bank
    Detroit – not Detroit
    Chevy Aveo – Honda Fit/Toyota Yaris
    Ford Taurus – Honda Accord
    Ford Windstar – Honda Odyssey
    Ford Focus – Nissan Versa
    Dodge Caliber – Toyota Matrix (OK, fine, Pontiac Vibe)
    Dodge Stratus – Nissan Altima
    Ford Escape – Toyota Rav4
    Ford Contour – Toyota Camry

  33. 33
    Posted by guest | November 19, 2008 at 10:06 AM

    32… Agreed

  34. 34
    Posted by guest | November 19, 2008 at 10:10 AM

    SPODE – It must take a lot of work to purposely misspell all those words in your posts.

  35. 35
    Posted by guest | November 19, 2008 at 11:17 AM

    @19
    Richard Shelby, R-Ala, who publicly has been very adamant about not giving handouts to Detroit, Sen. Jim Bunning, R-Ky and Michael B. Enzi, R-Wyo. You have the Big 3 and the lackeys of the UAW, led by the Michigan caucus and the Democrats vs. Republicans who are representing BMW, Nissan, Toyota which have manufacturing plants in Mississippi, Tennessee and Alabama along the I-65 and I-75 corridor. Typical congressional partisanship – go figure – and it should be interesting.

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