..cause at the rate this is going, this country is fuq'd.
Posted on 10/27/2008 6:52:52 PM PDT by BGHater
The U.S. government is considering direct financial assistance to facilitate a possible merger between General Motors Corp (GM.N) and Chrysler LLC, a private sector source familiar with Treasury discussions told Reuters on Monday.
The Treasury Department is weighing aid of at least $5 billion, which could include capital injections and government purchases of bad auto loans, according to the source, a financial policy executive who spoke anonymously because the discussions are private.
Emergency financing, at least initially, most likely would be focused on GM and Chrysler and not Ford Motor Co (F.N), which is struggling but still better off financially than its U.S. rivals, the source said.
A Treasury decision could come this week, the source said.
Separately, the Wall Street Journal reported the Energy Department is working to release $5 billion in loans to GM to help it finance the merger. The money, according to the report citing a person familiar with the matter, would come from $25 billion in financing approved by Congress last month to help domestic manufacturers make more fuel efficient cars.
An Energy Department spokeswoman said it would be "premature to estimate" a timetable for approving loans. Detroit and its allies in Congress have been pressuring the Bush administration to expedite the money, which regulators have said may not be available for six to 18 months.
White House spokeswoman Dana Perino said officials the Treasury, Energy, and Commerce departments have been in contact with automakers about help -- emphasizing the loan program for fuel efficient cars and the potential for Treasury to buy up bad car loans to spur new lending and jump-start sales.
Domestic manufacturers are burning through cash and their performance outlook has worsened. On Monday, Moody's Investors Service downgraded GM's credit rating on continuing liquidity concerns.
(Excerpt) Read more at news.yahoo.com ...
They can’t pick out 2 US automakers and limit it to that. Everybody gets a car under bambi’s plan though so they better start working on the next bug.
WTF is going on here. I am just an old fart but I do not remember the government being responsible for everything. Get over it. WTF is everyone thinking it the the goverment resposible for the stock and gas price. Hey...I do not like it...at all.
Bad auto loan = repo man. WTF.
i want them to go under when i read today how much they pay those unions in retirement and health care.
i resent that unions vote democrap.
but, alas, in reality, the country cannot allow them to go under.
The customers have already given up on these 2 losers. Why should our taxes have to help them out when there are plenty of other car companies that can do things right on their own.
My, how times have changed. When Chrysler, on its typical ten-year bliss to oblivion cycle, nearly went bankrupt in the 1980s, the government almost let it go under. Now, they are stuffing the executive’s bed with million dollar bills.
The right question is, can we afford for them to stay in business? You're right about the unions. Letting GM, Ford and Chrysler collapse would cut off a large chunk of funding for unions and the Democrat party. Since these unions are against us, I see the collapse of GM, Ford and Chrysler as a very good thing.
Its a Union Bailout.
..cause at the rate this is going, this country is fuq'd.
Why??? What is so special that GM and Chrysler that we have to pay for to keep them around??? I say let them go bankrupt and have them reorganize as leaner and meaner companies. Besides the unions are responsible for the pensions now.
Oh brother. If the stupid American automakers woulda made a decent car to begin with they wouldn’t be in this mess
Besides the workers from Ford, GM and Chrysler can go to Toyota, Honda, Nissan, and other car companies.
i deeply resent union thugs.
and especially the corrupt politicians that they help put into office that affect my life—all of my life.
interesting, today’s wsj says:
o the 2 co’s employ 145,000 people at 110 assembly and parts plants.
o an additonal 600,000 people are retired and rely on the co’s for pensions and health care! whew.
I believe they called it a Trabant.
lol!
i’d like to get rid of them.
but, can you imagine the “social” disruption of the folks in my last post without pensions and healh care?
that’s a total of 745,000 democrats.
we’ll be paying for them for a
long
time.
That is very sweet comrade. I’ve ordered my version for 2011 in a slightly darker neutral color ,grey I think they used to call it. After having been approved of course.
Anyone got the guts to buy GM preferreds?
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