From Big Three to Bogged Three - Senate Rejects Bailout Attempt
If you are an optimist with full faith that the economy will soon bounce back, later today may be a great time to buy some stocks in the Big Three American Automakers - in all likelihood, they should be going cheap.
Um, make that even cheaper.
General Motors Corp. may be in bankruptcy within weeks, followed shortly by Chrysler LLC, after the U.S. Senate rejected a $14 billion rescue plan and the companies’ options for survival dwindled.
“I dread looking at Wall Street tomorrow,” Senate Majority Leader Harry Reid said on the Senate floor in Washington last night. “It’s not going to be a pleasant sight.”
Can't speak for you, but as I see it, between every election from 2000 on all the way to this big eco collapse we are all caught in the middle of a big, bad disaster film remake from the 70's. It's like Poseidon Adventure, meets Earthquake, meets Wall Street except that last one wasn't a disaster film the first time around. But this rewrite sure is taking a weird turn.
It's gone from "greed is good" to "greed is ghastly" all in one fell year.
However, there is still debate concerning whether that $700 billion was enough to float the economic boat or if it was just optimistic window dressing. Spreading it even thinner couldn't make anything better. Could it?
Connecticut Democrat Christopher Dodd, who helped lead the negotiations, said the final unresolved issue in the Senate talks was a Republican demand that unionized autoworkers accept a reduction in wages next year, rather than later, to match wages of U.S. workers at foreign-owned companies, such as Toyota Motor Corp.
While I do not often share the sentiments of Republicans, be they elected or not, my guess is that these Republicans have a good point. As a basic lefty loony I've been cranked off by the amount CEO's, CFO's and the rest of them make. To pay the leaders 400 times what the linefolks make is ridiculous. However, it is probably safe to say at this point, that all Gods' children got to suffer - whether they be rank and file or management. I simply doubt the books will balance otherwise.
Let me close with what we can all appreciate as the season's best understatement, this from Senator Harry Ried -
“This is going to be a very bad Christmas” for many people, Reid said on the Senate floor last night.
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Los Angeles, California, United States