GM Spirals the Drain (Part 2)

[notyoueither]

Originally posted by DanS
Not a sure thing yet. I think there's something like $15 billion left from the first tranche.

There would be value in holding up the automaker bailout to threaten the Dems to give him the second tranche (and other things too). I could understand the horse trading. But Bush doesn't even have the balls to do that. He just rolls over to the Dems' special interests.

Or he announced 'maybe' on a Friday to prevent another market crash. People have the weekend to think about it and resume normal madness on Monday.

Or do I give him too much credit?

[Darius871]

Originally posted by DanS
He has the authority because the report includes all sorts of specific language about the automakers. "Revised and extended" after the fact, mind.

Which report, do you mean the required certification for the bump from $250b to $350b? I didn't know that'd even happened yet, but then I haven't really kept track since October.

[DanS]

No, the report accompanying the bill.

[DanS]

Originally posted by notyoueither
Or he announced 'maybe' on a Friday to prevent another market crash. People have the weekend to think about it and resume normal madness on Monday.

Or do I give him too much credit?

I think that Washington has been worried way too much about the market reaction on this and the banking bailout. Is Bush spending his days watching his portfolio? Market movements should have nothing to do with these actions.

That said, the market was down only 3.5% this morning before Bush made his announcement. Let's face it. Detroit isn't part of the market like it used to be.

[Darius871]

What substantively did it have to say about the automakers that would bring them under the umbrella of "financial institution"? They wouldn't be if they were just mentioned in passing as a symptom of the overall economic malaise being addressed.

[notyoueither]

Only 3.5%. Only in the first hour or few.

And the announcement was from Air Force One. How often do they do that?

[DanS]

Not sure if it's online... Basically, it's a dialog among lawmakers. One saying "so I understand the language is broad enough to mean that the automakers could be covered?" The other saying "oh definitely so."

[DanS]

Originally posted by notyoueither
Only 3.5%. Only in the first hour or few.

And the announcement was from Air Force One. How often do they do that?

He may have done it because of that. But it would be a piss poor reason. The president shouldn't put his dick in a sling over that.

[notyoueither]

What's he actually done other than suggest a possible course of action?

[DanS]

It's all in his hands now. He answers to nobody on this. So suggesting a plan makes it so.

[DanS]

Here's Reid saying Bush can do whatever he wants. Watch the video.

http://news.bbc.co.uk/2/hi/business/7778830.stm

It sort of sounds like Reid was pissed off at his own special interest (UAW) for not negotiating reasonably with Corker.

[Wezil]

Hurry up DanS. Harper and McGuinty are waiting on you to get your **** together. They couldn't wait any longer to announce something here.

TORONTO/OTTAWA/WASHINGTON — U.S. and Canadian governments say they will ride to the rescue of the beleaguered Detroit auto makers, hoping to head off a catastrophic collapse of Chrysler LLC or General Motors Corp. that would cascade throughout the North American economy.

Ottawa and Ontario will provide an estimated $3.4-billion to the Canadian units of the Detroit Three, while U.S. President George W. Bush will throw a $14-billion (U.S.) lifeline to their parent companies.

Federal Industry Minister Tony Clement called a hastily arranged news conference Friday night to announce the Canadian aid package.

“The seriousness of the situation dictates that we be here this evening,” Mr. Clement said.

(more)

http://business.theglobeandmail.com/servlet/story/RTGAM.20081212.wrautos1213/BNStory/Business/home

[notyoueither]

Will markets react worse to a trial balloon that doesn't happen, or a 2am Senate vote?

Christ, Dan, Japanese auto makers were getting pummeled in Tokyo.

[TCO]

Why siould UAW make concesions when they will get bailout regardless.

[DanS]

Originally posted by notyoueither
Christ, Dan, Japanese auto makers were getting pummeled in Tokyo.

It's just not that big of deal as far as the markets are concerned. The Detroit Three have chased away the investors -- the stocks and bonds are worthless. GM's main supplier is already in Chapter 11. They've already caused the maximum amount of pain. There's nobody left.