Government bail-out for Detroit's automakers as bankruptcy looms

by Emilio Lizardo | September 7, 2008 at 06:12 am
976 views | 29 Recommendations | 20 comments

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Government bail-out for Detroit's automakers as bankruptcy looms

Government bail-out for Detroit's automakers as bankruptcy looms

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uploaded by Emilio Lizardo

Evidently, once one of Detroit's Big Three declares bankruptcy, then the other two will be forced to do the same, just to remain competative with the first one to declare!

In an effort to avoid this very undesireable outcome, Detroit's once proud car makers are approaching Washington once more with hats in hand.

Detroit's sputtering Big Three turn to Washington for help
Sep 7 12:13 AM US/Eastern

Battered by weak sales, declining market share and miserable credit ratings, Detroit's Big Three automakers are now turning to the US government for help.

General Motors Corp., Ford Motor Co. and Chrysler LLC will be launching a campaign in the coming days to secure at least 25 billion dollars in federal loans to help get past the current economic malaise.

"This isn't a bail out," said Greg Martin, Washington spokesman for GM, the largest US automaker which has been awash in speculation for months that it is running short of cash.

"These are direct loans that we have to pay back," added Ford spokesman Mike Moran.

Detroit's goal is to have new legislation in place for the aid package by the time Congress adjourns in late September or early October.

The combination of an economic slowdown, the credit crunch and presidential politics, have enhanced the prospects of such a plan.

The possibility of one or more of the Big Three seeking bankruptcy protection -- which could have an enormous economic impact -- has created a sense of urgency.

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mchawk
mchawk
flagged this story as Good Stuff

at 06:22 on September 7th, 2008

Emilio Lizardo, I like this story. It's good stuff.

Optionally, they could make economical cars that people want to buy - just a thought

0
Mikasi

As am American I demand you stop all that crazy talk!!!!!!!

Barry ORegan
Barry ORegan
flagged this story as Good Stuff

at 11:50 on September 7th, 2008

Emilio Lizardo, I like this story. It's good stuff.

Mikasi
Mikasi
flagged this story as Good Stuff

at 12:10 on September 7th, 2008

Emilio Lizardo, I like this story. It's good stuff.

They can get in line behind Freddie and Fannie... For it's part US government is the in line which forms at Beijing.

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Emilio Lizardo

Thanks for flags and comment, Barry and Mikasi.

But, don't worry, Mikasi - they'll just fire up the printing presses and make all the new money they need ! Not a problem at all, just ask 'em ...

SOLARLIFE
SOLARLIFE
flagged this story as Good Stuff

at 12:24 on September 7th, 2008

Emilio Lizardo, I like this story. Bail out the big 3 GM FORD CHRYSLER sounds very French "Champaign socialism". The respectable Lee Icooca did it and won with the new Chrysler Mini Van. For the follower the Hedge Fund Rider CERBERUS, I find it perverted,  if they get get offshore US government bail out.

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SOLARLIFE

I forgot Donald Trump, who once said the remarkable sentence: "Chapter 11, bankruptcy is a business tool",..... but pls bail out,  for all Americans $49 free chapter 11. Thank you Mr. Bush, before war $1 / Gln, with petrol war $4 / Gln = Bush economy for Carlyle.

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Emilio Lizardo

Thanks for comments and flag, Solar.

And I agree - it really can be an infuriating thing to see, if you let it get to you ...

The way all of us good little citizens keep paying our taxes so that these criminals can stuff their own pockets and the pockets of all their friends ...

It sounds like ancient Rome ...

dunkelberg
dunkelberg
flagged this story as Good Stuff

at 13:29 on September 7th, 2008

Are these the same auto companies living beyond their means, while others only took on the debt they could afford?

Always blaming the government!

You know if Bush and his crony GOP Congress had had the ....... testicular fortitude to put on strict CAFE standards, the auto makers would have been forced to have been in a competitive situation right now, instead of the opposite.

They got their way, and now they don't like how it turned out.

Now the people who made the dumb decisions will get expensive buyouts, pensions and stock options, while the line worker wondering what were they thinking will lose both job and pension.

Heckuva job, Bush!

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Emilio Lizardo

Thanks for posting the video.

And since you did, I think I should just say for the record I don't feel comfortable endorsing either of these candidates. Is Obama the lesser of two evils ?

I know just enough about him to have my doubts. I do believe he will end this war, which may be enough reason to believe he's a better choice on that basis alone ...

All I'm really pretty sure of at this point is that the rest of the world, with the likely exception of Great Brittain, is probably hoping America gets struck by a really large asteroid and the sooner the better ...

Thanks for the flag and the comments, Dunkleberg ...

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jackdaniels

It is the corrupt democratic leaning unions that made the automakers fall.

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Emilio Lizardo

I was a member of a labor union for about 8 years, and I have known men and women who were part of the movement which formed in the 1930's and 40's in response to the severe abuses by companies against workers often using local police forces and hired thugs as corporate policy enforcement units.

I will not ever put down a labor union because, even though they seem to have become more or less irrelevant over the last 25 years or so, I know how and why they were born.

We suffer from a crisis of leadership, my friend, where politicians and corporate executives have sunk down to the lowest common denominator - pure unadulterated greed, whether it be for the thrill of personal fame and power or only just remaining in the shadows and making lots and lots of money ...

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dunkelberg

Oh, jeeeeeez!

What I love about all the apologists for stupidity in corporate America is that they cast about everyone to blame someone else.

Every since Boy George was anointed president, the idea of people at the top being held accountable for stupidity has gone out the window. Instead, you pay off the loser executives who made the bad decisions with big exit bonuses and layoff the line workers, secretaries, dock workers and the like.

Is the economy in trouble because economic and political leaders made stupid and often selfish mistakes?  No, the McCain camp says it's because we are a "nation of whiners".  Besides, their buddies are doing ok.

Do too many U.S. troops die because the civilian leadership sent them to battle without proper armor, support or numbers?  No, it's because of "cut and run" mentality.  Don't question your leaders it's unpatriotic. 

The bloody car companies themselves have said they blew it.  Yet, the loyal apologists still make excuses for them.

Even Reagan would be sick of the lack of the accountability from conservatives today. 


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Emilio Lizardo

Get a grip, Dunk !!

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dunkelberg

Breathe in....breathe out....breathe in....breathe out.

Sigh.


Rhonda J Mangus
Rhonda J Mangus
flagged this story as Good Stuff

at 14:29 on September 7th, 2008

Emilio Lizardo, I like this story. It's good stuff.

0
Emilio Lizardo

Thank you for the flag, Rhonda!

Christina 123
Christina 123
flagged this story as Good Stuff

at 16:30 on September 7th, 2008

Emilio Lizardo, I like this story. It's good stuff.  Steady on, dunk!

0
Emilio Lizardo

Thank you, Christina, for the flag.

I think he's going to be ok now ... :o)

0
media kingdom

from a historical standpoint it's hard to object to the government's mass bailouts since similar debt-producing methods were put into action to save the U.S. from the Depression; it's like we've been headed for socialism this entire time...

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