Saturday May 2, 2009 6:41 AM CST
Michigan Gov. Jennifer Granholm, speaking in Lansing at a news conference about the swine flu, had urged them to consider Chrysler's 54,000 employees.
"On behalf of Michigan, on behalf of the thousands of people who will be affected if this company is forced into bankruptcy, I am publicly asking these hedge funds to not be greedy but to do what the banks have done and what everyone else around the table has done - take the concessions," she said.
This is a window on where we will be going the next few years before this is all over. The governor believes the creditors who after all want their money back, are greedy. But there is no concession in who will be running the new company, it will be the government and the unions, not the creditors which is the usual outcome in a bankruptcy.
While hope still has a chance it Texas, Fear rules the roost in Michigan, fear coupled with confiscation of assets. This is spreading from banks to car companies. Credit card companies are next. We have defended rescues of GM on the theory that it will cost a lot more to provide the welfare and unemployment payments in the 6246 communities that will be affected. We have not endorsed the UAW and government running GM and Chrysler. See our previous op ed on benchmarking failure.
Here in San Antonio the new Toyota Tundra factory is back to running two shifts a day for production. In Michigan the view is shifting in another direction.
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