Comments on: Auto Bailout Could Have Strings Attached: Ousting CEOs, Appointing Car Czar

By: Obama Administration Kicks the "Car Czar" to the Curb; Treasury's Geithner to Take the Wheel

Tue, 17 Feb 2009 12:58:03 +0000

[...] car czar – an approach that had some support in the American auto industry – was viewed as a key move in the federal government’s push to revamp the U.S. auto industry. The task force puts an end to reports Obama would recruit a well-known figure from outside to [...]

By: Auto Bailout Passes House, Faces Hostile Senate

Auto Bailout Passes House, Faces Hostile Senate — Wed, 17 Dec 2008 16:57:01 +0000

[...] a White House-chosen “car czar,” an appointee empowered to hold the companies accountable for developing long-term viability [...]

By: The Big Three Need a Shakeout, Not a Bailout | Geiger Index - Keith Fitz-Gerald

Wed, 17 Dec 2008 16:22:10 +0000

[...] I don’t know about you, but my jaw literally hit the floor when the chief executives of Detroit’s “Big Three” begged for a taxpayer-funded bailout. Never mind that General Motors Corp (GM), Ford Motor Co. (F) and Chrysler LLC are now seeking an aggregate $34 billion – which is up 36% from the $25 billion the Big Three was seeking just two weeks ago – or that they “drove” to Capitol Hill in a caravan of new hybrids so shiny they could’ve made the Keystone Cops green with envy. And now that negotiations are under way to “advance” the three U.S. automakers $15 billion from an existing loan program, I don’t know whether to laugh … or to cry, since the total amount actually needed may be north of $150 billion. [Click here for an update on the Big Three Bailout]. [...]

By: admin

admin — Tue, 16 Dec 2008 15:07:02 +0000

Comment by Bobbie on 9 December 2008:

Why do you keep calling the “Loans” for the big 3 a “bailout”. The financial world was given a “bailout”, the auto industry is asking for loans that they will re-pay … not a handout like we gave to select banks.

~~~~Response~~~~~~
We call it a bailout because there is virtually no possibility that these companies – given the state of their balance sheets and business models – would be able to secure $34 billion in loans from commercial sources. The government is bailing them out buy offering taxpayer money. Also, there’s no guarantee that these loans will be paid back. General Motors, for instance, is burning through cash at such an exorbitant rate that it could easily fail – even if it does get a “loan.”
Jason Simpkins
Associate Editor
Money Morning

By: The Big Three Need a Shakeout, Not a Bailout

The Big Three Need a Shakeout, Not a Bailout — Mon, 15 Dec 2008 15:11:52 +0000

[...] And now that negotiations are under way to "advance" the three U.S. automakers $15 billion from an existing loan program, I don’t know whether to laugh … or to cry, since the total amount actually needed may be north of $150 billion. [Click here for an update on the Big Three Bailout]. [...]

By: Fed May Cut Rates Again as Policymakers Meet

Fed May Cut Rates Again as Policymakers Meet — Mon, 15 Dec 2008 10:34:06 +0000

[...] to the Big Three – Ford Motor Co. (F) may not need any for now – and create a new car czar to oversee an industry restructuring. While Wall Street initially hailed the move as a [...]

By: Jutia Group - Market Jitters & Political Critters

Jutia Group - Market Jitters & Political Critters — Thu, 11 Dec 2008 18:29:57 +0000

[...] previously reported in Money Morning, there will be limits on executive pay, prohibitions for golden parachutes and requirements that the …. The bill also provides a "car czar," or presidential appointee, to oversee keep tabs on [...]

By: Auto Bailout Awaits Congressional Approval with Millions of Jobs at Stake

Auto Bailout Awaits Congressional Approval with Millions of Jobs at Stake — Thu, 11 Dec 2008 09:20:51 +0000

By: Bobbie

Bobbie — Wed, 10 Dec 2008 18:19:15 +0000

Let them “stew in their own muck” … Yea … just like we did with the banks. … Oh wait a minute … we didn’t did we … we GAVE them money.

Don’t get me wrong, I agree we should let capitalism play out, but you can’t do for one industry and decide not to for another. We shouldn’t have given out 800 Billion either. It would have worked itself out in the long run. But you have to realise it would have been very painful for the average american and not the executives that caused it.

And Lyndal … if you ever come back to read this, I’m sorry for whatever it is that is eating at you, but I didn’t cause it and I’m not a crook. I just see favoritism being done with the financial industry over the auto industry.

By: Zela

Zela — Wed, 10 Dec 2008 04:56:34 +0000

Loan or bailout, the fact is that the reason they are where they are is that they are not meeting the needs of the consumer. Point blank. So either way, by the laws of free market capitalism they should be left to stew in their own muck