Autos: To bail or not to bail?
Last night, the Senate refused to follow the Senate down the GM bailout path. From the New York Times ...
"The Senate on Thursday night abandoned efforts to fashion a government rescue of the American automobile industry, as Senate Republicans refused to support a bill endorsed by the White House and Congressional Democrats.
"The failure to reach agreement on Capitol Hill raised a specter of financial collapse for General Motors and Chrysler, which say they may not be able to survive through this month.
"After Senate Republicans balked at supporting a $14 billion auto rescue plan approved by the House on Wednesday, negotiators worked late into Thursday evening to broker a deal but deadlocked over Republican demands for steep cuts in pay and benefits by the United Automobile Workers union in 2009.
"The failure in Congress to provide a financial lifeline for G.M. and Chrysler was a bruising defeat for President Bush in the waning weeks of his term, and also for President-elect Barack Obama, who earlier on Thursday urged Congress to act to avoid a further loss of jobs in an already deeply debilitated economy."
This morning, the White House is sending out signals that it may be willing to use TARP funds after all to bail out the automakers. That has helped lead to a spike in stock market futures. But the harsh reality is that the economy is still in awful shape. We just learned this morning, for instance, that retail sales dropped 1.8% in November, a record fifth month in a row of declines. That means there are going to be large capacity cuts, wage concessions, and massive layoffs at GM and Chrysler whether they reorganize in or out of the bankruptcy courts.
"The Senate on Thursday night abandoned efforts to fashion a government rescue of the American automobile industry, as Senate Republicans refused to support a bill endorsed by the White House and Congressional Democrats.
"The failure to reach agreement on Capitol Hill raised a specter of financial collapse for General Motors and Chrysler, which say they may not be able to survive through this month.
"After Senate Republicans balked at supporting a $14 billion auto rescue plan approved by the House on Wednesday, negotiators worked late into Thursday evening to broker a deal but deadlocked over Republican demands for steep cuts in pay and benefits by the United Automobile Workers union in 2009.
"The failure in Congress to provide a financial lifeline for G.M. and Chrysler was a bruising defeat for President Bush in the waning weeks of his term, and also for President-elect Barack Obama, who earlier on Thursday urged Congress to act to avoid a further loss of jobs in an already deeply debilitated economy."
This morning, the White House is sending out signals that it may be willing to use TARP funds after all to bail out the automakers. That has helped lead to a spike in stock market futures. But the harsh reality is that the economy is still in awful shape. We just learned this morning, for instance, that retail sales dropped 1.8% in November, a record fifth month in a row of declines. That means there are going to be large capacity cuts, wage concessions, and massive layoffs at GM and Chrysler whether they reorganize in or out of the bankruptcy courts.
posted by Mike Larson at
9:13 AM
5 Comments:
I feel it would be stupid of our government to continue bailing out the white collar workers insatiable need to live beyond his means. THe white collar worker needs to give up all his ammenities so the blue collar worker can not be the one to lose out on a way to support their families. The white collar worker will be effected after the blue collar worker, and perhaps the big three would not be in the shape they are in if they managed their inflows considerably better. When the price of a new vehicle is almost the price of a home, I see no reason for all this trouble. Where has the money went? Mismanagement or misappropriation of funds. Plain and simple. Let them fall, and let another rise, and or let them start over with a little less greed, and a new outlook on affordability and practicality.
By
Anonymous, at December 12, 2008 at 10:09 AM
Nothing wrong with auto workers making a fair wage butn the "perks" that GM has agreed to are breaking the bank .. .. that's what should be 'fixed' before any thought of a loan from us tax payers.
First fix the problem...then assist.
otherwise we taxpayers would be forced into a rediculous obligation made bt GM.
biggelow@toast.net
By
Anonymous, at December 12, 2008 at 10:26 AM
General Motors had offered buyouts to all of its 74,000 U.S. hourly employees. [5] Those workers could have elected to take a lump-sum payment of $45,000 or $62,500, depending on their job description, and retire with full benefits. [6]
Republican Sen. George V. Voinovich of Ohio, a strong bailout supporter, said the UAW was willing to make the cuts - but not until 2011.
http://nomedals.blogspot.com
is were citations are posted
By
Jason, at December 12, 2008 at 12:41 PM
Republicans do not reflect the views of most Americans. Yes we should bail out Auto industry. How did these same Republicans vote on wall street bail out.
By
Anonymous, at December 12, 2008 at 3:17 PM
Bail out Auto makers. Republicans do not express views of most Americans. They should look at polls and election results.
By
Anonymous, at December 12, 2008 at 3:22 PM
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