Bailing out the Detroit automakers

[fourteenandoh]

that is phenomenal! i love how they even worked in a reference to the coming inflation.

[THEWOOD]

I have not read this whole thread, but has anyone mentioned how this is similar to Amtrak? How did that work out for the government? Oh yeah they lost 1.6 BILLION last year.

[jimotis4heisman]

Originally Posted by THEWOOD

I have not read this whole thread, but has anyone mentioned how this is similar to Amtrak? How did that work out for the government? Oh yeah they lost 1.6 BILLION last year.

nixon nationalized amtrak for just a few months. or the fan/fred gse takeover, now the banks and not allowing them to essentially denationalize (repeatedly upping the requirements) and yes now two of the auto companies.

[Tresselbeliever]

Originally Posted by THEWOOD

YouTube - The 2012 Pelosi GTxi SS/RT Sport Edition

Get your new car in 2012!!!

[jimotis4heisman]

Investor Firm to Tap GM's Fresh Billions to Buy Delphi - WSJ.com

Flush with $30 billion in new capital from the U.S. government, General Motors Corp. has agreed to finance a private-equity firm's buyout of bankrupt auto-parts company Delphi Corp.
...

im out of words. out of words.

and for those of you wondering...
Magic Act: Conjuring Up a Profit at GM - WSJ.com

Like a magician who artfully controls his audience's attention, the government's General Motors investment is all about financial diversion.
Here's the fancy trick: It won't be very hard for a revamped GM to succeed at making a buck. Its debts will be cut from about $73 billion to about $17 billion. Its labor costs will be reduced by as much as $2 billion a year.
On Wednesday, GM got even more help. GMAC, which funds dealers and car buyers, began issuing $3.5 billion in three-year debt backed by the federal government. This should cost GMAC about 2.2% annually.
...

someone explain to me how this is little more than cooking the books? just wondering...

[fourteenandoh]

they are already in trouble. check out Ally Bank.

Former GMAC Bank under attack - Jun. 3, 2009

basically using the gov't backing to create a new fanny/freddy only with deposits instead of mtg's.

[jimotis4heisman]

Originally Posted by fourteenandoh

they are already in trouble. check out Ally Bank.

Former GMAC Bank under attack - Jun. 3, 2009

basically using the gov't backing to create a new fanny/freddy only with deposits instead of mtg's.

and you realize that gmac has become the subprime haven for auto loans... they not only used this bailout money but talf money also.

[jimotis4heisman]

Barney Frank, Car Czar - WSJ.com

President Obama may have "no interest" in running General Motors, as he averred Monday. But even if that's true, we are already discovering that he shares Washington with 535 Members of Congress, many of whom have other ideas.
The latest self-appointed car czar is Massachusetts's own Barney Frank, who intervened this week to save a GM distribution center in Norton, Mass. The warehouse, which employs some 90 people, was slated for closure by the end of the year under GM's restructuring plan. But Mr. Frank put in a call to GM CEO Fritz Henderson and secured a new lease on life for the facility.
Mr. Frank's spokesman, Harry Gural, says the Congressman discussed, among other things, "the facility's value to GM." We'd have thought that would be something that GM might have considered when it decided to close the Norton center, but then a call from one of the most powerful Members of Congress can certainly cause a ward of the state to reconsider what qualifies as "value." A CEO who refuses the offer can soon find himself testifying under oath before Congress, or answering questions from the Government Accountability Office about his expense account. To that point, Mr. Henderson spent Wednesday with Chrysler President Jim Press being castigated by the Senate Commerce Committee for their plans to close 3,400 car dealerships. Every Senator wants dealerships closed in someone else's state.
As Mr. Gural put it, Mr. Frank was "just doing what any other Congressman would do" in looking out for the interests of his constituents. And that's the problem with industrial policy and government control of American business. In Washington, every Member of Congress now thinks he's a czar who can call 'ol Fritz and tell him how to make cars.

dont think mr frank will be alone on this one. this is the reason this thing will be a failboat even if it floats.

[fourteenandoh]

i pray every night before i go to bed that the voters of massachusetts come to their senses and send this guy packing.

[jimotis4heisman]

GM to sell Saturn to Penske - Jun. 5, 2009

...
The deal gives Penske the rights to the 19-year old brand including its five different models. GM would continue production of only the three highest-selling models, including the Aura sedan, and the Vue and Outlook cross-over SUVs, for the next two years. The Saturn Sky and Astra models will be discontinued.
...

[jimotis4heisman]

Pensioners eye Supreme Court in Chrysler appeal | Reuters

NEW YORK (Reuters) - A group of pension funds opposed to the sale of bankrupt automaker Chrysler LLC is ready to take the case to the U.S. Supreme Court if necessary, their lawyer told a U.S. appeals court on Friday.
Glenn Kurtz, a lawyer at White & Case representing a group of Indiana pension funds opposing Chrysler's sale to a group led by Italian carmaker Fiat SpA, said his law firm is already working on papers for the appeal to the U.S. top court if necessary.
...

so who is this "pension group"
Indiana Teachers and Cops vs. Chrysler - BusinessWeek

teachers, cops, etc...

[jimotis4heisman]

a look into the joys of having govt motors....
Car Dealers, Reeling, Get Senate Hearing | Daily Yonder | Keep It Rural
Government ownership gets thorny, already - BusinessWeek
Senator: Chrysler, GM should reimburse auto dealers - Washington Business Journal:

how can you do whats best for constituents, unions, workers (non union car dealer, white collar, etc), states, feds, bondholders, the companies and more...

[fourteenandoh]

Originally Posted by jimotis4heisman

how can you do whats best for constituents, unions, workers (non union car dealer, white collar, etc), states, feds, bondholders, the companies and more...

when you are owner and regulator, isn't that the definition of a conflict of interest?

[BuckeyeMike80]

Originally Posted by fourteenandoh

when you are owner and regulator, isn't that the definition of a conflict of interest?

Not for the Messiah. He's above conflict.

[MaxBuck]

Originally Posted by jimotis4heisman

GM to sell Saturn to Penske - Jun. 5, 2009

This could be pretty cool. Penske Red Line Sky? A winner!