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Posted by Dug on Friday, November 28, 2008 at 16:27:23 :
In Reply to: Does Chrysler Deserve Our Help? posted by MoparNorm on Thursday, November 27, 2008 at 09:19:41 :
No, they do not deserve a bailout, but it will be in the best interest of all of us if they get one.
The alternative is bankruptcy, and look what will happen.
They will dump their pensions on the federal government like United Airlines and several other companies with large pension obligations have done in the past.
Bankruptcies always include downsizing, and we do not need to be raising the number of people on unemployment right now. The healthcare benefits that go to the retirees will be dumped into medicare, which is on it's own path toward insolvency.
Like it or not, the country has to do something.
The solution will have to include strong oversight, control of executive compensation, and the guarantee that a higher percentage of cash flow will go into research and development, instead of buying back shares and making special dividends.
My 2 cents,
Doug
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