that hedgefund scandal that happened after the close, bank america laying off 38,000 employees and now they just announced the big three bailout collapsed. this ai'nt priced in. the market had been holding up because a bailout was supposed to happen any day.
it's a double whammy fraud plus UAW refusal to negotiate a wage cuts or any concessions. if auto 3 goes bankrupt, all the contracts union are nulled and thousands laid off .. i think the workers would take a 20% wage cut instead of being on welfare and get a 50% wage cut working in min wage job or no job.
White House will save the day with 15 billion and futures will have a mega rally before the open..nothing to see here
Dont get too excited - its a rigged game and especially the shorts face the brunt - what next - bernanke and paulson announce that they bail out the small 3 using tarp funds abd the market closes at 900. How oftwn have shorts been burned on really good trades since last year. It was only a few days ago that they backstopped 306B in Citi losses and gave them another 25B and what was a great trade on break to new lows was foiled by these mothers.... Completely rigged ..
Is that true? Are the current labor contracts nulled in the event of a chp 11 bankruptcy? I've been looking for info on it and can't really find anything conclusive. Anybody got a good link? As far as I can tell, the company can ask a BK judge to void the contract, but it appears to be up to the judge, and the union can still strike even if the contract is voided. Somebody with good info chime in here.
Bankruptcy court will rule whether labor contracts are voided. Given that labor represents just another claimant on the bankrupt business, unions are typically required to share the burden of bringing the business back to solvency. It is a time-honored practice of airlines once they've let their labor contracts run out of control Speaking of airlines, they'll be begging for a bailout of their own in a few more quarters.