Doug Casey's 30 years experience in the resource business give him a rare and deep knowledge of this sector. More importantly, however, is that he is the most instinctive contrarian I have ever met and that, in my opinion, is the key to his remarkable success as a speculator - Rick Rule, Global Resources
In This Section
Bailout vs. Bankruptcy
For Immediate Release
November 24, 2008
November 24, 2008
Contact: Kevin McVicker
Shirley & Banister Public Affairs
703-739-5920/800-536-5920
kmcvicker@sbpublicaffairs.com
Shirley & Banister Public Affairs
703-739-5920/800-536-5920
kmcvicker@sbpublicaffairs.com
BAILOUT VS. BANKRUPTCY
Executives Attempt to Avoid Scrutiny of Pay and Contracts
Stowe, VT – After over 30 years of consistent mismanagement and decline, the “Big Three” are asking the federal government to bail them out, again.
“That lawmakers are even considering this bailout is clear evidence that Washington has lost all common sense,” says Olivier Garret, CEO of Casey Research (www.caseresearch.com), a financial newsletter that monitors economic trends and recommends investments. “The best thing that could happen for the auto industry is for the Big Three to file for bankruptcy protection.”
As a former turnaround professional, Garret is convinced that the tools afforded by the bankruptcy courts would allow these companies to restructure dramatically, thus allowing them to renegotiate and drastically lower most of their liabilities. Management would be overhauled, pensions renegotiated, union agreements tabled and made more flexible. Everything that these three companies have attempted to do for years, and could never achieve, would now be possible.
Yet the automakers, riding in on their private jets, are trying to avoid Chapter 11 because under bankruptcy protection, management becomes accountable to the court, many of their perks and benefits would be curtailed, and they could, heaven forbid, even lose their jobs.
Additionally, a bankruptcy court could review payments of executive compensation over the previous year and determine if they were appropriate. A bankruptcy court could also review contracts entered into by the company going back as far as twelve months. The court could then determine if such contracts were awarded due to personal relationships of executives.
“The choice is clear: Either the Obama administration can continue on the path of nationalizing entire segments of our economy (so far banking, insurance, auto – next, health, airlines…) and run them into the ground. Or it can let poorly managed companies fail, thereby making it easy for successful businesses and new entrepreneurs to buy the assets of these organizations. Step back and let the markets work their magic instead of blaming the market for ills that were created by special interests and poorly designed regulations,” said Mr. Garret.
Casey Research is a team of highly experienced investors and trained economists who spend countless hours researching powerful economic trends and the very best ways to profit from same. Their clientele is made up of individual and institutional investors who share the costs – through subscription fees - in exchange for unbiased research and information they can use in managing their portfolios to produce above-average returns.
To schedule an interview, please contact Kevin McVicker with Shirley & Banister Public Affairs at: (703) 739-5920 or kmcvicker@sbpublicaffairs.com.
###
