The Beauty Parlor, Not the Barbershop

Wed, 10 Dec 2008 12:22:59 +0000

Speaker Pelosi's haircutting metaphor went terribly wrong yesterday:

But if they don't meet the conditions of restructuring, there is not going to be an endless flow of money to this industry, left to their own devices and the practices they have engaged in.

While they re-evaluate their relationships, we call this a barbershop. Everyone is getting haircuts, in terms of the conditions. Labor has to take a haircut because of the concessions and expediting the concessions. Shareholders have to take a haircut. There has to be consideration of the relationship with dealerships, with suppliers, and the management itself has to take a big haircut on all of this.

If you believe the first paragraph, then I have a bridge to sell you. If the government gives them funding now, there is no way that the new Administration is going to pull it in the spring, regardless of what happens at the Big 3 between now and then.

So let's focus on the second paragraph. Speaker Pelosi has confused the barbershop and the beauty parlor. Filing for bankruptcy -- not pandhandling the government on Capitol Hill -- is going to the barbershop. While there:

This is not what the stakeholders are getting from Speaker Pelosi. She has them in the beauty shop for a John Edwards styling session and hair extensions financed by the taxpayer. Locks of Love this isn't.