Thursday, April 30, 2009

Oops! Chrysler plans to file for Chapter 11, Lewis gets fired from being the Chairman of the Board, and Kodak posts a loss in Q1.

And, Time Warner plans to spin off AOL. Now if only the globals spin off their Print, my IRA would be much happier.

But until then, it's going to be interesting to see how this all plays out. Here's the link to the Kodak story. If you go to, you'll find the links to other stories.

My bet is that conversations between GM and their bondholders will take a different twist in the next couple of days. I put down a small bet on GM common a while ago that the bond holders are going to blink first. I can't see how the UAW and the Federal Government are going to pay less attention than the institutional investors and hedge funds. For the last couple of years, they've obviously been too busy being busy to focus on the task at hand.

I figure that the grown ups in Washington are ready to let GM reorganize in bankruptcy. It's plausible they have to put the legal stuff in place to make it as quick as possible. Meanwhile, FIAT can wait until Chrysler comes out and pick up the brand at probably a better price.

If I could figure out the situation, I would also place a small bet on Quebecor World. But I think the common is going to get wiped out.

Meanwhile, I'm particularly interested in the "separating CEO from Chairman of the Board" story. That never made much sense to me anyway. As far as I can tell, those jobs have two very different job descriptions.

As expected, the Kodak story has the usual "the economy is blablablabalbalbla.' Sorry guys, you get the big bucks because your job is to keep the ship profitable no matter what the economy blablablablabla. No doubt, it's a very, very hard job. But consider that you are very, very richly rewarded, have amazing perks and great pensions.

Plus you chose the job. You didn't get drafted. As in government so it is in global publics. The buck stops at the top. It's the way grown ups play the game.

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