between the hedges_

Satellite Radio Is Not Immune to Big Three Troubles

The problem is that every time you downsize, you pay a highschool drop out $150,000. That is the freaking problem. It is ridiculous and must be stopped now. Fascist or not, Unions must go now. This is not the taxpayers problem. Back to the real topic, SIRI/XM. This company's viability is based on their ability to pay STD, short term debt, or debt due within one year. They will have to pay the debt due in Feb as the bondholders will not convert to common stock. I think that they can do this based on the synergy created by merger. The other debts due within the year concern me unless Mel can raise the cash by issuing more shares or refinancing the debt. If he can, look out above. If he can't, then he will face the B word. Big bet. I'm still long.

Satellite Radio Is Not Immune to Big Three Troubles

Mogami:

The Big 3 are doing fine in these times, with the exception of pay and benefits. It has nothing to do with the quality of the cars. The whole problem is pay and benefits. The union is bankrupting these companies. I hope the companies file for liquidation as opposed to reorg (which they wont do) to bust the Unions.

The Japanese don't pay their workers any where near what the Big 3 pay in indemnity and benes. I applaud the Japanese workers who are grateful for their jobs and pay.

If the Big 3 stopped producing and went into liquidation, the Union would be meaningless as there would be no money coming in at all. Thats the result that I want to see, but I know will not happen.

Therefore, Tyler's article is meaningless as the Big 3 will not go into liquidation or will be bailed out by Bush and the Treasury. Auto sales are down all accross the marked, including Toyota and Honda, as people are now all hoarding their cash or trying to delever. We are at a classic bottom in my opinion on a long view as gas prices are down and that will serve to put more $ in everyone's pockets. As the autos are forced to provide greater rebates and deals, the buyers will slowly, but surely reappear.