Posted on 12/12/2008 7:04:08 AM PST by meandog
Bush changes mind, may save auto giants
Facing the potential bankruptcy of iconic American firms, President Bush on Friday abandoned his longstanding objection to using using the Wall Street bailout fund to help save G.M., Ford and Chrysler.
A frustrated Republican congressional official said: "If only they had said this last week, we could have saved ourselves a full week."
Ten hours after the Senate rejected a separate lifeline for the automakers, White House Press Secretary Dana Perino said in a statement it would be "irresponsible" to let the companies crash. So she said Bush will "consider other options," including the $700 billion Troubled Assets Relief Program that Congress created for the Treasury Department in October.
"Under normal economic conditions we would prefer that markets determine the ultimate fate of private firms," Perino said in a statement. "However, given the current weakened state of the U.S. economy, we will consider other options if necessary – including use of the TARP program — to prevent a collapse of troubled automakers. A precipitous collapse of this industry would have a severe impact on our economy, and it would be irresponsible to further weaken and destabilize our economy at this time."
(Excerpt) Read more at politico.com ...
We will import cars...their country needs jobs also. They will return home. The idea that a failure of the big three will give these transplants a competitive edge is laughable. There will a serious disruption of suppliers thus, they will have an excuse to leave.
I wish all industry well and believe Washington has kicked your industry in the teeth and left you guys to fail in so many ways, but I have to tell you. In this environment;bankruptcy means liquidation. I think the number of unemployed people would devastate this economy-maybe even cause a depression.
Certainly one of the dumbest ever. Just listen to him speak.
Bush just loves giving other people’s money away-he is so generous!
Sadly, a lot of the unions seem to be corrupt in that sense. They're politically connected and protected.
Union membership is way down in the private sector, with the exception of a union named SEIU. SEIU was the cornerstone of an estimated $400 million dollar union ad campaign against Repubs in the recent election. It's fair to say that if lefty politicians and union leaders are dance partners, it's the unions who are leading.
The UAW has gotten its way for the last 60 years, I think, because of their political connections...protection, if you will.
During the 1930s the US experimented with alcohol prohibition. Organized crime stepped in and prospered, made possible by paying off corrupt politicians. There's a remake of a TV series made into a movie called The Untouchables, about the government agents who fought these criminals.
There's a scene where they're raiding a liquor distribution center in, of all places, the backroom of a US Post Office...presumably, government owned and operated. A guy rushed forward and says, "You guys made a big mistake...we're PROTECTED!"
When I see Ron Gettelfinger speak, that's what I think of...that scene. He wonders why the rest of us don't get it.
The other impression I get is that the union bosses probably have never actually worked on the assembly lines themselves, or done an honest day’s work in their lives. They are sorta like the pigs in Orwell’s “Animal Farm”. The days of the courageous union-organizing shop floor steward who shuts down his drill press and goes on strike for fair wages are long, long gone. Again, I don’t know if that is a fair assessment either...
Ron Gettelfinger has. There seems to be a trend, however, toward so-called "professional" union leaders, those whose background and training is much different from those they represent. One of the leaders of the union that represents Boeing engineers, SPEEA, has a background not in engineering, but community organizing...where have we heard that before?
The distinct impression I get is that the UAW would be quite OK with running the Big 3 into the ground: they’d just go infect another business. Sorta like varroa mites on busy honeybee hives...
They have done so in the past. I don't know if it was a deliberate strategy, or whether their sense of denial and entitlement led them off the cliff.
Union leaders are consumate politicians and negotiators. Gettelfinger accurately predicted that he could get a short term cash infusion by the Bush administration until a more friendly administration and Congress take power. They, unlike Corker, will know that issuing ultimatums to labor is not how "things are done."
It's working.
I've been reading your nonsense long enough. How do you know this?
Except that Congress has said repeatedly that the Feds would provide DIP financing.
In case you hadn't heard, the auto industry is laying off, not hiring...and that is by definition for new hires, not existing employees.
The current UAW members have sacrificed nothing.
Excellent cartoons!
Who's destroying the industry?
One definition of a lie is that which may be factually correct, but through distortion or omission gives a misleading impression. You, sir, are the liar.
When we're talking about the problems of the auto industry, how much workers are paid is irrelevant.
What's important and significant is how much they cost, which as you've illustrated is a different and much higher number.
He’s trying to regain the respect of Scott McClellan.
You said the workers were paid this amount...Thus I merely pointed out the true figure. If anyone was lying; it was you. I prefer to believe you were mistaken as the ignorance on this issue is shocking.
There is no doubt legacy costs add to this problem which is why the union will assume the legacy cost of their employees in 2011 (2007 contract) and could well assume such costs almost immediately because they have agree to accept equity in GM instead of the cash their members paid into this program over the years. This was in the works before the economic meltdown. It takes judicial review in order to finalize the deal...which is why 2011 was the target year for this to happen.
However, a car czar could circumvent the courts, and this would be ideal. Also, if this works, the US taxpayers would not be on the hook for the pensions. It is a shame that those who disagree with you for whatever reason resort to name calling when the errors in their arguments are pointed out.
The truth probably is that many on this forum want GM and Ford to go away because of the hatred of unions and don’t give a crap about the effect on the economy or this country. You know many of the guys who work for me are ex-military. They do not deserve this sort of rage directed against them. They served their country proudly and do their job well...hatred is a destructive emotion. It is a sad day for this country when a party is willing to destroy their country for political reasons-completely un-American. Truly, those in the GOP who support this-Shelby, Corker and others should be ashamed. When are country was on its knees, these fools attempted to score some sort of political score and acted in ways they believe will benefit the transplants (campaign contributions)-truly disgraceful behavior.
Sen. Shelby Et Al are working pretty darn hard to do just this. We can also blame the Wall street and the government for their stupid trade policies and onerous regulations. We can also blame former CEO’s of the big three...for mismanagement. However, GM was well on its way to restructuring before the financial tsunami hit. I heard today that some analysts believe that Goldman may not survive. How many millions did we pump into this company? They leveraged an average of $40.00 per each dollar they took in...is this a ‘good business model’? Is this company viable? We need industry to pull us out of this whole just as industry did during WWII...they ended the depression. The bankers will never manage it on their own. This economy is too large for this discredited service/consumer model.
Of course now the financial elite are beginning to tell us it’s not this economy is at fault...that American will naturally decline- Liars, damn liar and Wall Street. They have brought this country down because of their reckless behavior.
since most transplants are in the 30-43 dollar range. The cost is still comparable unless you dishonestly add in legacy. I am well aware of layoffs. By the way, the new transplant going into Mississippi was put on ‘indefinite hold’ yesterday. So, it begins.
They have not said that. After the way the GOP handled this thing, no one could trust them; they might filibuster legislation providing this financing. Plus, this would not help the supplier issue. Suppliers are already talking to bankruptcy lawyers. It would also cost a great deal more and take years. Years in which few cars are sold and perhaps not even manufactured. Courts do not move quickly. Why do this-begin a complicated procedure which would take years and might not work? Now that’s throwing good money away.
I saw Sen. Corker on Fox News. He acknowledged that this was added by the GOP caucus. The UAW head had stated it during his press conference and Sen. Corker acknowledged it. I see no reason for him to lie. You see Sen. Corker has a GM plant in Tennessee as well as transplants. One new transplant is supposedly on the way. I would not count on that Sen. Corker based on the news out of Mississippi yesterday.
It doesn't matter if the amount shows up in their checks or not...compensation is compensation. To argue otherwise, again, falls under the broader definition of "lie."
I've followed the auto industry in the financial media and the Freep for years. Your statements, to put it bluntly, do not stand up to scrutiny.
He never met a company not worth bailing out ...
Well, no. I don't know if you've been following the news, but the Detroit 3 approached Washington for a loan no banker would touch.
"Sen. Shelby Et Al" are not signitaries to any business decisions which brought the Big 3 to this point. When a company (or person) brings financial ruin upon themselves, they lose control of their destiny.
We can also blame former CEO’s of the big three...for mismanagement. However, GM was well on its way to restructuring before the financial tsunami hit.
In hindsight, management could primarily be blamed for agreeing to unsustainable contracts. They will also be blamed by the UAW for trying to end the practice.
They can also be blamed(again, in hindsight)for giving operational control of the companies to the UAW. I don't fault management so much for that; current management inherited the legacies, both cultural and financial. Prior management faced a UAW that could cripple them or put them out of business with a strike.
Prudent management requires that management insist upon financial soundness. That means that the companies have a positive net worth, they have abundant liquidity, and it means they are consistently profitable.
Contrast that with the path chosen by the UAW, which regarded profits as being stolen from their rightful owners, the employees.
I agree about the financial tsunami. While the companies have been working at restructuring, they have been on this path for over 20 years. Part of the responsibility of running a business is planning for inevitable downturns. If you haven't, then you've left yourself at the mercy of others.
There's a Hebrew term, chutzpah. It's defined as a shamelessness, like a child who murders his parents, then asks for the mercy of the court, because he's an orphan.
So comes the UAW, who armtwisted the car companies into unsustainable contracts, and now fault management for agreeing to them. They are not blameless victims here.
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