Wilbur Ross has always been a contrarian, which is entirely natural
given he's a distressed investor, so it should surprise no one that
he's on the opposite side of the fence from the growing number of
pundits and financiers who have argued for a General Motors Corp. Chapter 11
bankruptcy filing.
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"It doesn't add up that they are letting GE and American Express to
become banks to get aid, but they won't save the car industry," Ross
said during an interview with Bloomberg News.
A filing, he said, would lead only to widening economic pain and
chaos and wouldn't address any of the problems plaguing Detroit's Big
Three, Ross continued. The result of a bankruptcy, Ross warned, would
be liquidation -- and a broadening circle of pain spreading throughout
the U.S. economy. He summed it up best when he said, "It would be a
total mess."
But is Ross really worried about the greater economy? Has the
distressed investor become a populist investor worried about the
working man akin to, say, Ron Burkle? Well, hardly.
Ross is clearly looking out for his own interests. He may not have a
direct stake in any of the Big Three (at least not a stake that
requires an SEC filing), but he does own auto parts makers and steel
companies. Should the Big Three falter, then odds are his holdings will
suffer too. No sin in self-interest, of course. - Matthew Wurtzel
See story from Bloomberg News
Matthew Wurtzel is the editor of Dealscape.
Comments
Ross is right, but what you implement and how you do it is critical.
Here a plan worth a look by Congress...
http://pacificgatepost.blogspot.com/2008/11/solution-for-detroit-gm-friends.html
Trying something outside the box like this, is the only way to save the U.S. Auto Industry.
... it deserves saving.