Deadlock over Detroit ends with $15 bn bridge loans, peanuts for Big 3

by SOLARLIFE | December 6, 2008 at 04:35 am

171 views | 26 Recommendations | 10 comments

Detroit Automakers to survive Christmas

$15bn is less than expected. The real costs to keep GM alive are $ 450bn in total, including the "Revolver loans" out of the good times, but the banks are not existing any more. So government has to take the big amount when Obama comes into power.

A deadly end for the US featured free market economy

Other countries may feel pressure to bailout the car industry too. The result the rest of our money goes into dying industries, that are unable to recover, no need for their obsolete products. Innovation finance of starting companies to clear the market ? Nothing !

Experts predict US Finance collapse March 2009

The no-end Bailout story with no way of Finance recovery through now dead Investment banks, without sub-prime multiplyer, the US finance engine without Oxygen. Other countries have intelligent production, creating value. The US gave all intelligent production to China (invstment bankers saved money) and kept the old non-productive non-innovative industry dinosaurs eating the last US Big macs. First salaries paid for christmas peace, new year silence will come before storm.

..."the Pelosis coming, money for all"

The significant move from Pelosi signals that the deadlock over rescuing Detroit may be over.

Congressional Republicans and President Bush support the idea of tapping the $25 billion advanced technology fund. Two officials familiar with compromise talks told CNN that the working target is $15 billion to $17 billion in bridge loans, intended to fund the struggling Big Three automakers through March.

However, one senior Democratic congressional source told CNN that House and Senate committee staff will meet over the weekend to write a bill to provide $20 billion to $25 billion in assistance to the U.S. auto companies

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Paschen

at 07:09 on December 6th, 2008

Good Post SOLARLIFE.

SOLARLIFE

at 12:45 on December 6th, 2008

Paschen...good post. Of course, I would like to write a survival story. But this is the End of US driven free market economy. Money makers, Industry lobby, politicians run downhill to the bitter end.

Jordan Yerman

at 09:08 on December 6th, 2008

It's still not a done deal, though.

"Congress is considering various short term funding options for the American automobile industry," Democrat Nancy Pelosi said in a statement late Friday after leading US automakers pleaded for a government rescue.

Pelosi dropped her earlier opposition to tapping a 25-billion-dollar auto industry stimulus for fuel efficient cars but said any funds borrowed would have to be quickly repaid.

"We will not permit any funds to be borrowed from the advanced technology program unless there is a guarantee that those funds will be replenished in a matter of weeks so as not to delay that crucial initiative," she said.

SOLARLIFE

at 14:38 on December 6th, 2008

Jordan...still hope for fuel efficient cars, Pelosi...good to know, but the car industry is a hardselling business, the butcher at the frontdoor, the Cow will say I am an ecofriendly polluter, give me all your pocket money, I have to survive. The Big 3 are a brutal power and they know it. Why is chrysler (not registered at stock market) not declaring chapter 11 ? The main owner or Rider Cerberus Hedge Fund would have to present the Balance sheet. He can not, in reality we bail out a bancruptcy Hedge fund with ancient government managers for proper Insider business a la Albright Hedge Fund. Just tell in a letter who gets bail and who not. Amazing Clintons could keep their $750 million Foundation Capital and $100 million private money without exposed to a bank or fund collapse. Oh Wonderwomen Albright.

Emilio Lizardo

at 10:02 on December 6th, 2008

It's all politics and showmanship ...

The Automotive industry created the American middle class. Everbody knows it cannot be allowed to fail - no matter how badly run these companies are ...

What amazes me is that people just blandly accept the fact that 700-billion is very quietly being doled out to failed finance companies who are every bit as responsible for their own failure as are the auto companies - and nobody seems to care.

Then, when the Big 3 come along and ask for a mere 34-billion ( 4.8% of the 700 billion earmarked for the finance sector ) it turns into a gigantic media circus ...

And everybody just eats it up !! It's pathetic ...

SOLARLIFE

at 14:45 on December 6th, 2008

Emilio....It's all politics and showmanship ...and nobody seems to care. Indeed the Big 3 calculate the Nostalgy effect, we will cry for a our spark plug replacement for the 95 Cadillac. What to do ? In reality managers fly away with the company jet, ....we got them, money will come. But as we have seen beginning with Iceland, also a country can go bancrupt. Nobody wants to see ....no banker in Prison, so why go to work, wait for the next scam.

René

at 11:15 on December 6th, 2008

How does anyone with any sense call $15 billion 'peanuts'?!? Fifteen billion dollars? If they can't make it on that, they need to get another life.

Fairbanks

at 11:28 on December 6th, 2008

$15 billion is about two weeks of sales.

SOLARLIFE

at 12:34 on December 6th, 2008

Fairbanks...$15 billion is about two weeks of sales. Two weeks just over christmas I agree

SOLARLIFE

at 12:42 on December 6th, 2008

Rene thanks for defending $15bn, but it's really peanuts for big 3. GM for ex. removed profists from GM germany to US. GM now asking German government for $75 bn bailout, so you see the real numbers. Ford GM asking nordic countries for Saab Volvo bailout and so on... Nobody would be as stupid to give them money now, they just burn it. "Global US capitalism is kaput" as the people say now. By the way thanks for writing, another life, that's Solarlife.