Chapter 11's Not So Bad
Hello Mr. Obama:
I have not received your phone call asking me to be your Republican Mommy Blogger Consultant yet, but I completely understand. There are so many issues for to be be focused on these days; my appointment can wait.
I heard your written response regarding this last request for an emergency bailout for the American car companies. I thought it was probably a clever way to cover your bases on a difficult situation. I know you don't want to anger the unions who bought, er, worked hard, to help you get elected, and you also know that it's right before the Holiday Season and it's hard to give bad news at such a time. I have a suggestion that just might work and at the very least, worth examining with people smarter than myself.
You see, I have an interesting perspective on this because of what my husband's company is currently going through as we speak. It's called Chapter 11 Bankruptcy. I know, I know....it's sounds awful when you say it out loud, but with your speaking skills, I know you can make it sound like a picnic to the worried public.
We land bank for home builders and when these companies got into trouble (some sub-prime mortgage issues, some foreclosures and others affected by the market), they returned all the lots back to us. Then, we could not handle the $95 Million worth of lots and the bank loans we had in place, so we were thrown into Chapter 11. You see, most people believe the housing market will some day bounce back and more homes will need to be built, so the judge has told us if we can do a few of the deals, slash our salaries and hunker down for awhile, we can stay a company and not have to close up shop (Chapter 7). And yes, people may not buy quickly from a home builder that is may also in Chapter 11, but they will eventually forget about that and buy a home in the area they choose. I feel this example is very similar to what would occur in the auto industry.
First, the American auto industry has a lot of contracts with the Federal government and these can stay in place and the government could even give them slack in getting the products finished in a timely manner.
Second, the general public will forget the company is in a bankruptcy situation months from now, when they drive by the dealerships and see everything running as usual. If we want our Ford pick-up, by damn, we are going to buy it.
Third, most people are like Bill and me and would much prefer to figure out how to live with a smaller salary then be out of a job. Can't you wield your magic over the unions about lowering the current pay programs and salaries? I find it ironic that the unions that were once put in place to support the workers may now actually hurt these hardworking individuals.
Fourth, we had to recognize that our value as a land bank company is not what it once was and to stay competitive, we've had to change the ways we do business in the future. The car companies maybe could consider thinking the same way. They have done a great job in keeping their workers overpaid by industry standards, so they should feel proud of those accomplishments.
Finally, old George is considering approving emergency money because he's afraid of going down in history as leaving the country in a bad way. Well, it's too late. Can't you speak to him and tell him you've got this one under control? Tell him that so many industries are in the same boat and we will survive. Tell him, once the car companies are in Chapter 11, he can shower them with money and forgiveness of the debt they have accumulated over a decade or more.
Give this idea some thought. If you need me, I'll be at my computer working on a few new posts. Why just today, I've asked my readers to choose a villa on the island of Mustique for a vacation for my sister and I on the 'Vacation with Sis' page. (Feel free to vote!)