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2008-12-19 Home Front Economy

If Auto Makers meet strict non-binding goals they'll get $17.4 Billion

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Posted by GolfBravoUSMC 2008-12-19 11:23|| || Front Page|| [1 views ] Top

#1 "Strict non-binding goals"- thats a good one.

Posted by Grunter 2008-12-19 13:11|| 2008-12-19 13:11|| Front Page Top

#2 the administration decided against forcing a bankruptcy to compel cost-cutting, in order to avoid the risk that consumers would desert one or more of the companies and touch off an industry collapse

I am missing the logic here. Car-buyers would shy away from a company in bankruptcy, but would still buy from one that's on a government loan, yet still has a dubious future?

Posted by Milton Fandango 2008-12-19 13:40|| 2008-12-19 13:40|| Front Page Top

#3 Unfortunately the 3 magic letters are missing from is story - UAW.

Posted by ed 2008-12-19 13:41|| 2008-12-19 13:41|| Front Page Top

#4 Yes ed. There's been a messy divorce between the economy and the Big 3+UAW. Like any divorce the proceeds are being divided up, but the UAW insists that it be maintained in a manner it has been accustomed to - upon the backs of other workers/taxpayers. This is no longer the dialect of class warfare of management exploiting the workers, this is now the warfare of the politicized workers exploiting the other workers/taxpayers. Under capitalism man exploits man. Under socialism the reverse is true, man exploits man.

Posted by P2k on holiday 2008-12-19 15:24|| 2008-12-19 15:24|| Front Page Top

#5 I suspect that Alan over at FoMoCo can see the writing on the wall and while he may have a plan for bringing the blue oval back to life, he knows that the likelihood of doing it by the end of March is slim and he isn't ready to bet the company on the current terms. Of course I really do not think the gov't is conna call for their chips then, so the 3/31/09 deadline is just a place to begin the negotiations from. this is only my humble opinion, of course.

Posted by USN, Ret. 2008-12-19 15:40|| 2008-12-19 15:40|| Front Page Top

#6 Have You Driven A Ford Lately?
We're not bleeding you dry.....

1985 Ad... I only saw it once during the Daytona 500...

Posted by .5MT 2008-12-19 16:53|| www.cybernations.net]">[www.cybernations.net] 2008-12-19 16:53|| Front Page Top

#7 Bush is a fecking IDIOT. I now regret my vote for the pinhead back in 04.

Someone put something shiny in front of him and distract him so he toddles off and goes to screw up something LESS significant.

Excepting his lucking into a win in the GWOT thanks to a good general, and his initial tax cuts, and a few other small items, he has been a gutless moron in his 2 terms.

Not to mention it may be an illegal use of the TARP funds - I hope someone sues and gets an injunction to force GM and Chrysler into Bankruptcy. At that point the Govt can step in and provide DIP financing to see then through the restructuring.

But 17 Bil and NO string attached for either the UAW or the execs?

Gimme a break George you stupid sumbitch, STOP throwing good money after bad!

Posted by OldSpook 2008-12-19 17:01|| 2008-12-19 17:01|| Front Page Top

#8 the can got kicked down the road a few months = Obama's problem. Bush wasn't gonna solve it, and now O has to deal with the UAW issue with a Donk congress and re-election in 2010 for many. IMHO - a wise move to keep them alive long enuf to make it a Donk problem, otherwise it would be them eeeeevil Republicans vs the "downtrodden Dem-lovin-blue-collar workers of America" again, regardless of the facts. Note that Chrysler's workers will be getting 95% pay during their month off. Wish I could get that kinda plan

Posted by Frank G">Frank G 2008-12-19 17:57|| 2008-12-19 17:57|| Front Page Top

#9 OS, I don't regret my vote for Bush. Kerry would have been much worse. I regret not having a choice between a Statesman and a Weinerhead, but between the lesser of two Weinerheads.

Posted by Deacon Blues">Deacon Blues 2008-12-19 19:35|| 2008-12-19 19:35|| Front Page Top

#10 Agree with Frank. Let Bambi handle this one. Unfortunately it likely means giving the car companies and the UAW many billions so that the UAW can keep its benefits. That won't work but it won't become evident until 2010. September, 2010. Two months before the mid-term elections.

Posted by Steve White 2008-12-19 19:37|| 2008-12-19 19:37|| Front Page Top

#11 Frank - do you really think the Donks and MSM will _allow_ this to be blamed on The One? This will be blamed on the Evil Republicans for the next 2 Presidential elections no matter what the actual story is.

Just look at the mortgage crisis - created and maintained by the Donks but successfully blamed on Bush - who is only too willing to take the blame and none of the credit.

Posted by CrazyFool 2008-12-19 20:11|| 2008-12-19 20:11|| Front Page Top

#12 CF - understood, unfortunately the Donks won't be able to vote "present" on this one (like Teh One). Too many blue dogs have Toyota, Honda, et al, plants successfully operating and paying good, but not UAW, wages to have cover to vote for it. Could tear their party apart. I remain hopeful

Posted by Frank G">Frank G 2008-12-19 20:20|| 2008-12-19 20:20|| Front Page Top

#13 I'm not so sure we'll have to wait till 2010.

1. Once Bush is gone the trunks with objections will have much less reticence about speaking out.

2. Once a company's momentum goes in the tank, it's hard to turn around. One of the most ridiculous things I heard on the radio was, "Now that the auto execs have the money they'll have to demonstrate they can put it to good use." Gimme a break! Those guys have no power and no control over anything except deciding which creditors to pay and which to stiff.

3. More and more employees will lose benefits such as 401(k) match, if not their jobs. They're going to be asking themselves why their taxes should be going to support UAW workers and retirees making more than they do.

4. The amount of money GM will need in Q2 will be a shocker.

5. So Ford doesn't screw the pooch and they get nothing for it? A lot of taxpayers who have led a prudent financial life, and there are a lot of us, will be able to identify with that and there will be a lot of resentment amongst them.

Posted by Nimble Spemble 2008-12-19 20:20|| 2008-12-19 20:20|| Front Page Top

#14 Good point Frank.

I just learned about 'Job Banking' this morning. Never heard about it before.

What this is (and correct me if I'm wrong) is that if a UAW worker looses his job he gets unemployment _and_ pay for up to 95% of his wages and even after unemployment runs out he can still get up to 95% of his wage - some for _years_.

I wonder just how many regular joe's know what is in those UAW contracts we are going to have to pay for with this ~~hand~~bailout.

Posted by CrazyFool 2008-12-19 20:34|| 2008-12-19 20:34|| Front Page Top

#15 yep - as hard to explain to the regular Joe as to why bailout-required companies should be offering "performance bonuses", huh?

I make no excuses for the W-regime's exit performance other than they're just trying to keep the finger in the dike til the new Prez and Congress can make good on their hope-n-change promises

Posted by Frank G">Frank G 2008-12-19 20:42|| 2008-12-19 20:42|| Front Page Top

#16 IIUC - the "job banking" runs two years with caveats for retraining opportunities, etc.

Posted by Frank G">Frank G 2008-12-19 20:44|| 2008-12-19 20:44|| Front Page Top

23:26 Frank G
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