It is interesting to see, but I think the Republicans might actually self-destruct. Remember that the Republican party was the result of the whig party self-destructing. Though the question is can the Republican party self-destruct? Sure it can, after all the Progressive Conservatives of Canada are no more, Conservatives of the UK are a shadow of a party, and the SPD (one of Germany’s oldest party) is self destructing.
So what could be that watershed moment for the Republicans? The Fiat Chrysler deal.
Indiana’s state treasurer, Richard Mourdock, has objected to the deal. He oversees public pension funds holding $42.5m (£26m) of Chrysler’s $6.9bn secured debt, and he claims that a "foreign corporation" is unfairly benefiting from the Detroit motor manufacturer’s difficulties.
"Indiana retirees and Indiana taxpayers have suffered losses because of unprecedented and illegal acts of the federal government," said Mourdock, who is a Republican.
Of course you can argue America is a land of law and therefore they should have their day in court. While I agree on this principle, the additional issue at hand is that the law of the land is relative and depends on the mood of the people and the government.
Remember that the USA was a land where slavery was tolerated and that the idea of having segregated washrooms was actually a good idea. Even though one could argue that the constitution did not allow those things from the start. But America being America adapted, grew out of those habits and the country a better place to live. But that brings us to the question of having a day in court.
I agree that they should have their day in court, but are they ready to suffer the consequences? With every decision there is a good side and bad side. While Richard Mourdock argues that they would get more money in bankruptcy court I actually think otherwise.
The reason is because car companies by themselves have little value. There are already enough car makers and there is no car that the world absolutely has to have. Car plants are very specific things, as there are no general machines. Each and every car making machine is a custom piece of engineering for the car maker. I know because I used to design machines for the car makers. This means if you were to buy a seat making machine it would be for a particular car and make. You can’t just buy a seat making machine and hope that it works for another car. That leaves the question who on earth would buy a car making plant? Answer, NOBODY! Fiat is buying Chrysler it with no money down, and Magna only bought Opel with lots of money from the German government.
You might be thinking that I am a bit extreme, but I ask you to look at my track record of predictions in this scenario. In November of 2008 I said Fiat would be interested in Chrysler (nobody at that time would have thought that), and in March 2007 I also predicted that private equity would botch up Chrysler (which they did).
If the courts allow the appeal, Chrysler will go bankrupt, people will loose their jobs and the Democrats will point their fingers at the Republican party! So while the Indiana Republican Richard Mourdock might have won the battle he will most surely loose the war. Richard Mourdock might not even have the hallow victory because I am tempted to believe that he will get less money than now.
Again please do not mistake my blog entry as not wanting law and order. I am merely pointing out everything has two sides, a ying and yang, a double edged sword, etc…