CloroxCowboy

Credit Default Swaps May Be Playing a Supporting Role in Chrysler Bankruptcy Filings

...? That was my point. Working on an assembly line is a WORKING class occupation. $100K/year does not fit the job being done.


On May 01 08:59 AM Liz wrote:

>
>
> I'd hardly call $100K/year "working class".

Credit Default Swaps May Be Playing a Supporting Role in Chrysler Bankruptcy Filings

I'd have to agree that disregarding senior debt is dangerous at best. IMHO, it is absolutely the union that should suffer in this deal. UAW auto workers are over-paid for their skillset, plain and simple. That is a huge part of what's driven Chrysler, Ford, GM into the dirt. Of course the vehicle designs are lacking, but when exactly did it become status-quo for a working-class job to equate to a middle-class lifestyle? It's just not a sustainable business model.

On Buffett-Back Riding

The author makes a very important point in his conclusion. I experimented with riding some of his picks earlier in '08. Some, like BNI and NSC, worked out well for me, but others are still floundering. Above all, it taught me that my investing style does not match Buffett's. I'm not inclined to buy a company and hold it forever, even if it would have worked out well 5-10 years down the road. It's just not the way I like to do things. Make sure you understand that Buffett is buying stocks that he thinks will pay off according to his timeframe, and that if your timeframe doesn't match his you should avoid this play.