Saturday, February 09, 2008

Non-profit corporations

Following prior posts of North Rock Bank in England and proposals to have the US government guarantee bank debts in the US (see, That's what I'm talkin' about), comes the latest hot goss on Chrysler.

In recent times recall that Mercerdes-Benz brought Chrysler in from the cold in a purchase several years ago. When the cold infected the rest of the organization with the flu, Mercedes-Benz dropped it off in one of those Private Equity deals, to be purchased by Cerberus.

Now, with Cerberus-Chrysler under the gun to strip down models and dealers to try to get on top of its business model as a for-profit company, the speculation is developing that they aren't going to make it.

Apart from his drop-top PT, Guambat has no interest or concern what Chrysler does. But the news does bring back the remembrance of a prior episode in Guambat's life. It would have been back around 1977 perhaps. Guambat was in a large lecture hall in his corporations class in law school.

The professor walked in and said, "today we're going to talk about non-profit corporations. No, I'm not talking about Chrysler."

It got a big laugh.

Some Weekend reading from the history pages:
Chrysler's Crisis Bailout
The first Chrysler bail-out; the M-1 tank (Featuring Donald Rumsfield in charge, the first time: same tricks)
A Step Toward Feudalism: The Chrysler Bailout
The Chrysler Bail-Out Bust

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