Killing GM in the Guise of Saving It

Several articles out this morning make it look like the Bush Administration is planning on "helping" GM by dismantling it softly and breaking the union, all with no apparent focus to making it viable again.

First, there’s this story suggesting that Bush may ask for the same concessions as Corker demanded last week.

Over the weekend, analyst Brian Johnson of Barclays Capital issued a report suggesting that the White House may still demand some significant concessions from the United Auto Workers as a condition of any short-term financial aid.

"Based on comments on the CBS show Face the Nation this Sunday morning by Senators Corker (R-Tenn.) and Levin (D-Mich.), we believe it is highly likely that the White House bailout may impose many of the same conditions Senator Corker insisted upon on Thursday in his attempt to forge a compromise," Johnson said.

That amendment would have required General Motors, Chrysler, the UAW and bondholders to replace half of the companies VEBA contributions with stock, eliminate the jobs banks and buyouts and agree to competitive wages, benefits and work rules by March 31 or be forced into bankruptcy court. Johnson has advocated many of the same provisions in his roadmap for a GM turnaround.

Note, once again, the silence about concessions from dealers?

Yesterday, Carl Levin gave similar warnings that the Bush Administration–which refused to even place compensation limits in TARP that Wall Street bankers couldn’t drive an Escalade through–is going to place real demands on GM and Chrysler.

And meanwhile, just by coinkydink, Bank of America is calculating how much money GM would need to fund bankruptcy proceedings.

GM may need around $30 billion in debtor-in-possession loans, which are used to pay for a company’s operating expenses as it restructures under bankruptcy protection, Bank of America analysts said in a report issued late on Friday.

The $30 billion represents around two times GM’s working capital, with an additional $10 billion cushion for further earnings hits and to fund suppliers, the bank said.

GM had $36 billion in long-term debt as of September 30, according to a regulatory filing.

To support GM, and the industry, the government will need to lend funds to support the company in bankruptcy rather than out of bankruptcy, as that is the only way to ensure the government has the most senior claim on the automaker’s assets, the bank added.

"The alternative to attempt to legislate a senior position for the government outside of bankruptcy, as appeared in earlier versions of the auto bailout legislation, represents a violation of contract law, a dangerous precedent that all government interventions to date have sought to avoid," the bank said.

Bank of America suggests that the money from the Troubled Asset Relief Program, or TARP, could be combined with funds from section 13 of the Federal Reserve Act, which allows the Fed to lend to companies on a secured basis under "unusual and exigent conditions."

"With the DIP in place to allow fundamental cost restructuring, restoring the long-term viability of GM could mean a longer payback of government funds over a 5-10 year period and perhaps sooner through a sale or refinancing," the bank added.

Bank of America, of course, got at least $15 billion in TARP funds–with only those Escalade-sized loopholes to limit what it can and can’t do with the money. But it sounds like it has a suspiciously well-developed plan for how to put GM into bankruptcy. Which, as we’ve noted repeatedly, would likely lead to liquidation, since consumers won’t buy a car with the stench of bankruptcy hanging around it. Is BoA preparing to get another sweetheart deal, where it gives faux-capitalist cover for a deal in which the government assumes all the risk?

Regardless. I noted yesterday that the people crafting these deals don’t appear to be negotiating in good faith. Who would have imagined that the White House would conduct the same kind of bad faith negotiations as Bob Corker? 

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85 replies
  1. klynn says:

    I am going to go off on craziness but then not so crazy…

    The auto companies should go across the bridge to Canada and see if they can negotiate more $$$. This might mean promising new technology development to Canada instead of here. Although, if I were the top states affected, I would be meeting with Canada to hammer out a joint investment and leave Bush-Corker crew out…

    Additionally, it would be nice to see some individuals who are SAG, AFTRA and AEA organize an “auto aid” and raise funds to save the UAW, save mainstreet, USA. If they do not, their unions are at risk. This is the time for unions (minus the SEIU – too many problems right now) to stand together. If they do not, living wages will be a thing of the past, even for SAG, AFTRA and AEA members. UAW could probably raise funds to invest in the purchase, or at least a bridge until Obama is in office. The employment stats get worse each day. The profit reports are sinking to the deepest red… Bankruptcy is not an option for the auto industry or the US economy.

    I loved the support the screen writers received from actors making their own ads as well as the information bits the writers put together on YouTube during the writer’s strike. Come on folks, support blue collar America, your fans… Music industry, we need your unions to participate too. Jane should try to drum this up. She has SAG connections does she not?

    I would donate to a “save mainstreet auto bailout”…It would be the most American act of charity I would participate in this holiday. After all, all the National Guard deployed need jobs to come back to. What, we send them off to fight a bogus war and bring them back to no jobs? Lovely.

    Let’s be proactive and slam the media with something on this ASAP.

    Any “branding” or marketing ideas out there to get this moving?

    This could put the “Happy” back into Happy Holidays…

    Crazy but very possible…

    • Leen says:

      This would serve Corker and others trying to bust the unions right.

      OT
      Someone suggested that someone like Nike name a shoe after “Al Zaidi” the Shoe Thrower. Wonder if there are any shoe companies in Iraq?

      • klynn says:

        Yep, that is why I wrote “more $$$”…Marcy wrote about the $ from Canada…I would go back and ask for more…The worst Canada could say is, “No.”

        • Petrocelli says:

          A very big problem we’ve had in Canada is, giving handouts to the Big 3 and then having them go back on their word without any penalties.

          That being said, I think Harpuh will fall in line with Bush, given that the Libruls have capitulated on tossing him out of office.

    • LeeNYC says:

      I like your ideas!! Crazy no, worth doing, yes. Would the auto companies want to do it? Probably not–it appears that they want the bankruptcy, too. Given the UAW concessions, they have to make the effort to appear willing to save the union.

      SAG might be interested in a telethon. Rosenberg is a progressive. Unfortunately they are tied up in their own union busting negotiations thanks to AFTRA.

  2. wavpeac says:

    I am so afraid that the criminal element of the finance part of GM will survive to continue torturing me and about one million others. I really believe that they are trying to keep the illegality of the finance departments safe from view, while they get rid of the unions. It’s like they are just designing this perfectly to fit their criminal goals.

    No one is being held accountable for violations of law. No one is being held accountable. It’s perfect. Dismantle it and then you can’t sue, you can’t do a single thing to get your home, your job, or your union back.

    amazing, stunning.

  3. klynn says:

    Bruce Springsteen, are you out there? This is your time to do right by those your sing about, sing for and sing to…Hey, The Boss? Your heartland rock is needed now! This is mainstreet, born in the USA and born to run…Come on. Just. Do. This.

    • Leen says:

      great request Klynn… so respect Springstein’s willingness and commitment to lend a hand, voice and honorable conscious to the struggle for justice.

      • klynn says:

        I only gave a shout out because he has been writing about the bailout. I figured he was at least concerned and would be a good “rally” individual of influence. It is because I respect his work that I wrote that. No disrespect on his career intended…I’m a fan of both his music and purpose-filled actions.

  4. prostratedragon says:

    Additionally, it would be nice to see some individuals who are SAG, AFTRA and AEA organize an “auto aid” and raise funds to save the UAW, save mainstreet, USA.

    Sounds like the germ of an idea to me. Could even generate enough public response that these termites suddenly wouldn’t seem so smart with their schemes.

    • klynn says:

      I’m hoping we can get an announcement by noon today… We need people to yap this idea up…I have found most people I talk to just do not “get” the ramifications of no bailout or bankruptcy in this economic environment. When I start local ending the concept of the economic ripple and how it can affect Honda near by…I start to point to all the Honda employees in our neighborhood and ask, “What will your house be worth if they loose their job and they go into foreclosure? Can you afford to devalue your home?”

      Eyes get big and the light begins to dawn when you put it into self-centered concepts for people..

  5. Petrocelli says:

    Good to see Bush put his own back slapping trip to Iraq ahead of burning the midnight oil at 1600 to bailout the Big 3. /s

  6. 4jkb4ia says:

    Even I was cynical enough to say that it was likely that the Bush administration would not simply give them the TARP money without conditions and everything would be all right.

    Bruce Springsteen has a new album coming out to promote, so is likely to be asked a question about this situation. I am now thinking of Bobby Bare’s “Detroit City” and also of how exciting it would be if we could get country singers to speak out about this, possibly some of the same people who did Farm Aid. It would be easy to find country singers who live in right-to-work states or states with foreign auto plants, and it would be very powerful to have these people speaking out about the need to save these companies or the possible suffering of the auto workers using patriotic language. They would have to be careful not to be blacklisted as the Dixie Chicks were. I realize I may have just volunteered myself for this effort.
    The example of Farm Aid shows that you can raise some money and help some people, but you cannot fix the overarching problem and you cannot raise anything like $15 billion.

    • klynn says:

      Oh, I am well aware of the $ made by farm aid. Even “Idol Gives Back” only raised 76 million last year. (BTW, Idol Gives Back will not happen this year because of the economy.)

      And Ford remains a sponsor…

      Badwater,

      Please, NOT another Bush…Two happened to be too much.

  7. MsAnnaNOLA says:

    More importantly is Bank of America jumping on the bandwagon to “help” with the bankruptcy because it stands to gain an outsized payday from its Credit Default Swaps?

    We still don’t know who wins if GM loses.

  8. klynn says:

    More importantly is Bank of America jumping on the bandwagon to “help” with the bankruptcy because it stands to gain an outsized payday from its Credit Default Swaps?

    We still don’t know who wins if GM loses

    I think that is the bottom line here. I think Repugs know who is going to gain big time from the Credit Default Swaps.

    We need transparency legislation on CDS, now.

    • Leen says:

      During the Wall Street “bailout, rescue, investment (they backed off of this one really fast), recovery” hearings Senator Harkin made a statement about Credit Default Swaps when they were explained and discussed. Harkin said that CDS’s need to be sent to the scrap heap…”casino capitalism”

      We sure heard the term “restructuring” over and over again during the auto industry “bridge loan” hearings. Never heard the word “restructure” once during the Wall street Bailout. Serious double standards

      In my book this is all corporate welfare…yet it appears it needs to happen

  9. Badwater says:

    Will blue collar voters now recognize that the Republics are not, and have never been, on their side or will they succumb to the good ol’ boy persona Jeb Bush will adopt as he starts nosing around for higher office?

  10. ThingsComeUndone says:

    The whole point of saving these companies is the workers jobs. Their high paying jobs we need spending to keep this economy going.
    We need a certain level of spending. Cut the workers pay, benefits, etc YOU CUT SPENDING!
    Higher wages even if it means lower corporate profits and less pay for CEOs is what we need to grow.
    The market will not like this, well Larry Kudlow will.
    Can Obama stop this now is the time to back the Unions!
    Bush should not tie the hands of the next President!

  11. ThingsComeUndone says:

    Any cuts Bush imposes on the car makers must be mirrored by the banks who got more money than the car makers want.

    • klynn says:

      Yeah, and one even turned around and bought out a bank after being bailed out. A-m-a-z-i-n-g how handy our tax dollars are for buyouts but not for bailouts intended on saving jobs and avoiding economic collapse.

      • ThingsComeUndone says:

        Yeah its amazing that GM is in this mess now when they can’t get people loans to buy cars.
        Now right after a bank bailout.
        Amazing how the MSM misses that point and instead focuses on the story that the car makers have been losing market share for years.
        That is a slow long term problem. Right now no financing means no cars sold that will kill the big three quick.
        Congress gave the banks money to make loans they need to make car loans.

  12. i4u2bi says:

    Back in the sixties the leadership of the UAW doubled the union dues for small supplier locals so Ford could go on strike. At the time Ford workers was getting three times the wages the small supplier workers were making..I know, I wuz one of the latter. All of my sympathy is with the worker and none for management..however I would be pleased to see an all out movement by the UAW to get UAW like benefits ‘health care’ for all Americans. Some of the selfish things gained by the UAW without any thought for the rest of America gives them a bad name by envious non union workers.

    • TrulyLeft says:

      Non-union workers can be thankful from the standpoint that without the union’s higher compensation, non-union would be even lower. To say “selfish things gained by the UAW without any thought for the rest of America” is ludicrous! The UAW membership has fought hard battles for what they’ve gained. How is that selfish? And who is it out there that have polled in favor of bankruptcy (despite the self-damage) but you non-union folks? Sorry, but I take high exception to your post!

      • ThingsComeUndone says:

        The phrase selfish might be hurtful. But the idea behind it is great every worker should have pay benefits and healthcare.

        • TrulyLeft says:

          But it’s MY selfishness that robs you of your good living? I don’t think so and won’t wear that burden of guilt. Grow a pair and stand up to management through strike actions, then come to me about my selfishness!

      • BooRadley says:

        I think most people here understand the vital value that unions bring. The recent problem, however, is that the UAW sold out environmentalists when they pressured rust belt Senators to raise CAFE standards. I understand the short term need that met, but long term it put the U.S. auto industry and the manufacturing base on a completely unsustainable path. There’s a lot of blame to go around to all Democrats. I understand that options were limited in eight years under Bush.

        OT, the UAW has completely misplayed this recently. They could have made the case for nationalized health care much more effectively and in unity with the wider Democratic party. Nationalized health care puts U.S. manufacturers on a much more level playing field with foreign producers.

        With all that said, I still want to voice my strong support for the UAW and unions.

        • eCAHNomics says:

          I think you don’t give enough consideration to how UAW has been hanging on by their fingernails for years. It would be my guess that they can’t take a strong stand on anything that sniffs of controversy, like CAFE standards or nationalized medical care, for fear of becoming more unpopular than they already are.

          • Petrocelli says:

            Yep … after NAFTA, GM shifted production of their sub compact to Mexico, where those workers got the equivalent of $1 per day.

            • ThingsComeUndone says:

              Revolution is coming oil prices are down. The American economy does not need that many Mexican workers whose pay sent home is a vital revenue stream.
              Ex President Fox wanted to legalize drugs toward the end I think he saw this coming.
              Unless anyone else sees another source of cash?
              Taxing the rich won’t work the GOP wishes they had Mexico’s tax loophole lax tax enforcement for the rich.
              Hmmm the GOP is also for lower pay and less benefits if it wasn’t full of Brown people the GOP would love Mexico!

              • TrulyLeft says:

                I’ve always wondered why the gop wants to lower America’s standard of living, why they want us to become a 3rd world country. In the long run it will also lower theirs. Could the be that short sighted?

                • readerOfTeaLeaves says:

                  Anyone can be a shareholder in US based companies.
                  People at the top of the economic pile aren’t ‘American’s’ — even if they hold US citizenship, they have houses and investments internationally.

                  They’ve moved beyond the nation state, and ‘globalisation’ was a way for them to move capital with no strings attached; convert those CDS’s to whatever currency pays a higher return today, and do that over the space of a week or two, and no one is ever going to be able to track you down are they?

                  And your $$ is in the Caymans, or the Jerseys?

                  Basically, it looks to me as if the kind of economic activity that launders money has overtaken legitimate financial activities.

                  I think all this bullshit is going to spark a strong interest in systems like Grameen.

                • Leen says:

                  Corporate fat cats do not care who they make their millions billions off of. Whether it is underpaid workers in China , Mexico or the U.S. they do not give a rats ass. Corporations rule the world as David Korten has endlessly repeated.

                  Greedlock

            • eCAHNomics says:

              I don’t blame the UAW at all. As I’ve typed many times before, workers have no power without unions, very little power with them. Strikes are their only weapon; last one in any industry of macroeconomic consequences was the 1970 auto strike, nearly 40 years ago.

  13. Watt4Bob says:

    What we’re learning here is that our government in many important ways, ‘is’ our economy.

    So the Repuglicans have just about got the ’small enough’ part wrapped up, and now we’re about to find out what the ‘drown it in the bathtub’ part looks like.

    Of course it doesn’t take much imagination to envision what a disgusting thing that would really be.

    Are we going to get another round of congressional hearings complete with claims of shocked disbelief?

    • ThingsComeUndone says:

      So the Repuglicans have just about got the ’small enough’ part wrapped up, and now we’re about to find out what the ‘drown it in the bathtub’ part looks like.

      Kill the government you kill the economy.

  14. eCAHNomics says:

    What’s the problem with GM stiffing suppliers by not paying bills until after January 20? Legal processes tend to be slow and the holidays would make any legal attempts of suppliers to do anything about that drag out. If GM can make it to Jan 20, then less strings would be attached, and maybe those might make sense.

  15. BooRadley says:

    Thanks ew. I am surprised and disheartened by this. I thought the credit default swap problem was bigger. I thought it wasn’t just the CDS’ on GM. The real problem was that if losers had to pay off on GM, it would force CDS’ to “reset.” People holding them would have to “deleverage” some more to raise cash. That would just accelerate the deflationary spiral.

    • readerOfTeaLeaves says:

      Boo — or MissAnnaNOLA @13 — please briefly expand, or add a link.
      Looks to me like what we’re seeing is what I’d term “Financial Arson”, is that correct?

      CDS’s are unregulated financial contracts that pay out ONLY when the underlying ‘derivative’ (company stock, mortgage, etc) defaults– and ’swaps’ can pay as high as 30:1 payoffs [because, by the logic of insurance, the odds are calculated based on the liklihood of GM going under].

      Because CDS’s are unregulated, we have no way of knowing who actually holds those CDS’s, correct?

      The closest analogy that I can think of is an arsonist, who ‘torches’ a home or business in order to collect on the insurance. But even an arsonist doesn’t get 30x the value of the original asset.

      So am I correct that what we’re seeing here is what I’d call ‘Financial Arson‘?

      My main sources on this comment: http://www.nytimes.com/2008/02……html?_r=1
      http://calculatedrisk.blogspot…..swaps.html
      Also, selise has written a history:
      http://oxdown.firedoglake.com/diary/2141

      If I am correct, this is like watching the American version of the Berlin Wall coming down — except that it’s Senators Corker, McConnell, Shelby, and others who hammering away?

      Is this really arson? And are the GOP Senators arsonists…?
      My mind is reeling…

  16. eCAHNomics says:

    Obama doesn’t think it’s good for a prez or prez elect to second guess the FRB. Geez, if not the prez, then who?

    • ThingsComeUndone says:

      Now is the time for Obama to say enough he has the popularity he could kill this if he makes a public repeated stand against it.
      By saying that Bush should not tie the hands of the next President!

    • ThingsComeUndone says:

      Chrysler should be first their parent company the hedgefund Cerberus could bailout Chrysler unless they are broke. I so want an independent audit of their books before Chrysler gets any cash.
      That and GMAC again owned by Cerberus is the reason GM can’t get car loans for people who want to buy their cars!

  17. TrulyLeft says:

    Our mini-van plant here in St’ Louis has competed for years with a sister plant in Canada. The company has always gained by pitting one against the other. Unfortunately for us, Canadian health care probably slanted the playing field in their favor. Actually, Canada might be in a good position to “loan” the big 3 some money with strings attached. But enforcing those strings would be the key. You can bet that insiders are busy at work figuring this from every angle. Meanwhile. ideology here in America continues to tear us apart. I’m fearful that the end is near…

  18. ThingsComeUndone says:

    Anybody have any idea how no auto bailout will effect Christmas sales?
    Anybody have any idea how much a cut in pay and or benefits for car makers will effect Christmas sales?

      • Petrocelli says:

        … esp. when end of year sales are high as old leases expire and new ones are acquired … where are these companies going to obtain leases ?

      • ThingsComeUndone says:

        Come on its a great talking point if we could get the MSM to bring up the subject.
        Sometimes I think we should get cash from the MSM for bringing up ideas and jobs forming Dem policy and talking points they should use.
        I want them to steal my stuff!
        Well the Dems at least.

    • ThingsComeUndone says:

      Will it be a direct correlation x amount of drop in wages etc equals x amount of drop in retail spending? Or if the cuts are big enough will we see a greater drop?
      And if so how big?
      The MSM needs to be putting those questions before the public.

  19. TrulyLeft says:

    I fought long and hard against my midwestern union brothers when they sided with management against cafe. I was also in minority supporting Gore then Kerry. As you know, St. Louis is the buckle on the bible belt and Rush and gang convinced many of my union brothers to go over to the dark side. As you, I am severely disappointed. However, we reap what we sow and this current crisis we Americans will pay for yielding to the mighty Wurlitzer of msm and rnc. If we are to take back our country, we have to unite. We must stop the msm media blitz and our efforts here go wasted when we pontificate about the inner workings of industry. Rather, we should be railing against the machine…

      • eCAHNomics says:

        I’m listening carefully because it’s all new to me. First speaker is actually against it. It seems to be happening in AZ, GA, & I think FL. It’s a racket if I understand it correctly. Apparently “donations” to schools are completely (81%) refunded to the donor after being washed thru the state tax system. That means that rich people get to send their kids to private schools without paying tuition. Courts have OK’d it because it is not a direct expenditure of state taxes (a distinction without a difference according to the speaker). Sounds disgusting, and apparently is increasing rapidly.

  20. TrulyLeft says:

    While the auto crisis is significant and with profound effect, there are many other non-related industries flailing in this economy with negative impact. Odds are that a auto bailout will not immediately turn around the economy concerning holiday spending. Just look at tv ads, most are geared to high end products (anecdotal evidence I know). And for many months we have read obscure stories from store workers commenting on how their respective stores were not “stocking up”. (Sorry, no links but who knew?) This is no surprise to some folks. While I think a bailout is absolutely essential to our survival, I don’t think it ensures it…

    • yellowsnapdragon says:

      I find the Christmas themed auto ads on TV depressing. At first I laughed and sneered because, of course, no one is buying cars. Now they make me sad because the truth is that fewer people can afford food and rent, let alone a car.

      On the positive side, at least the car companies are supporting quality TeeVee journalism by continuing to advertise!/snark

  21. sunshine says:

    Where is the silent Mr. Wagoner? Does he want to save GM or not?

    Why is he absent from the Detroit news stations and CNN?

    Why is he leaving the UAW to be the only spokesperson for GM to help get the loan?

    Is this the deal Wagnor wants?

    Has GM not learnt that if they had of been a friend to the UAW they would have owned all those foreign auto co’s in the south? Doesn’t he know with their help they could grow the domistic auto compaines.

    If the Volt can go 40 miles on an electric charge and 600 miles on one tank of gas shouldn’t Mr. Wagnor be shouting this now?

    Is Bush & Cheney trying to block this car from being produced because it would cut into their oil profits and world wide oil drilling?

    • readerOfTeaLeaves says:

      As a contracted official of GM, in some respects his hands are tied. He’s almost certainly not as free a player as you suppose, and he’s in a situation where a whole lot of people want to make huge gambling profits from ensuring that his company is taken down.

      Watching GWBush walk backward and even Cheney not able to save the day suggests there are levels of weirdness here that are hiding all kinds of things.

      But as a fiduciary officer of GM, Wagoner has his hands tied behind his back in some respects, and it actually wouldn’t surprise me if the UAW were more free to discuss certain matters than the execs are able to do.

      check this out: http://oxdown.firedoglake.com/diary/2261
      Which answers my question at 72.

      GM is worth more dead than alive to certain hidden interests who are unregulated; Warren Buffett was right in saying that credit default swaps are the ‘WMD of the US economy’ and we’re seeing his wisdom play out before our eyes. Google ‘credit default swaps’ + GM.

  22. sunshine says:

    I have not went shopping this holiday season.
    I may be getting the long johns and gloves out and protesting instead.

    • readerOfTeaLeaves says:

      Well, you may consider figuring out where to send money to help the auto industry, because the odds appear to be dimming that Bush will pull it off.

      The GOP will be deader than the Paleozoic era if the autos aren’t bailed out, so if you’re looking for silver linings…

  23. earlofhuntingdon says:

    And not so coinkadinkaly, Bush’s “plan” essentially implements much of what Cerberus Capital wants to do. It has made heavy bets on Big Auto — among other big bets, it owns the biggest chunk of Delphi, which is still in bankruptcy. Its aim is to maximize cash returns. Run a going concern? A manufacturer? In America? You must be joking.

    Its attitude, the policies and plans it will go to enormous lengths to implement, is pure Dickens and Swift, without the pathos or biting satire. Employees? Are there no work houses, no Poor Laws? Best that they get out and get on, and decrease the surplus population.

    • readerOfTeaLeaves says:

      EOH, where’d you get the info about Cerberus and Delphi…?
      Basically, what we appear to have going on his Paulson cooking the meth to feed the financial predators, eh?

      Jeebuz. Makes my brain spin.
      Also explains why they’ve never funded the FBI properly, doesn’t it.

  24. Kassandra says:

    I knew it; I knew it; I knew it! If Bush got his hands in there, he’d crush the auto industry in a car crusher. Say Buh bye to Domestic industry of any Kind.
    I read in Newsweek (the Dec 1st isssue)that we are now dependent on China to give US the operating capital for rebuilding…..And they have consumers (and problems) of their own now, thank you very much. The end of Globalization they said, if China didn’t come to our rescue.
    The end of America, I’d say and all those pretty promises from Obama.

    • brandane says:

      You can stick a fork in GM, it is toast, just as soon as the Democrats turned the rescue loan over to Bush/Paulsen GM was finished and so is the UAW. Now the Democrats have cover with the unions, after all it was the Repugs and Bush that did them in. Meanwhile Obama sits on his hands while the Repugs make it harder and harder to turn this economy around. Maybe we need more Bi-partisanship.

      • readerOfTeaLeaves says:

        I think you may want to read up a bit on the institutional types of power that seem to be in play.

        It’s not credible that Dem Senators are going to see their voters out on this one. And this may be one of the rare times when UAW and execs really are ‘in the same boat’.

        The GOP is about to become history if Bush doesn’t pull a bailout out of his hat. It looks as if Paulson, who right now is arguably the US dictator, is not supporting a bailout; his roots are in Wall Street, so he’d side with the CDS buyers-and-sellers.

        From what little I can sense, there’s a whole group of former GOP funders (car dealers) who aren’t going to have any love for the GOP after this — the GOP appears to be cutting into its support among country club members. So there’s a silver lining.

        • readerOfTeaLeaves says:

          It’s not credible that Dem Senators are going to see sell their voters out on this one.

          Fixed.

      • Kassandra says:

        Yup. Pass the buck. I knew the jig was up when Dodd said he had “alot of respect for Corker” I thought WTF?

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