I'm watching the live coverage of the Senate hearing on this bailout. It's very interesting... the auto makers flat out admitted that it is "highly likely" that this $34 Billion would just be the tip of the iceberg and that they will likely be back looking for more money in about 6-8 months. The CEOs of the big 3 are basically sitting here saying: Look, we need the money or we are going to go under. The economy will spiral into depression. We will basically bend over for a federal oversight board and Congress if you will give us this money."
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MM
That which does not kill me postpones the inevitable.
Is Ford still claiming they're ok and would just need a standby loan? Or have they joined the chorus too now?
And when did it become $34 billion? I started hearing that number floating around the news yesterday. Two weeks after their initial request for $25 billion and it's already up to $34? That doesn't exactly inspire confidence in where these motor heads are heading.
They are holding to that claim for now. There is some Senator that I don't recognize dressing down Mr. Nardelli from GM... says that they are basically asking for money to "hope you can hang around long enough to get married to somebody before you run out of money again" and how Serberus, the 80% owner of GM has lots of cash on hand but refuses to invest any further money into GM. Nardelli's comeback was,"We got divorced last year."
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MM
That which does not kill me postpones the inevitable.
It's kind of amusing to listen to... in a very sick, sad kind of way. You can hear the "you guys are so lame, way unsustainable, and a sucking cash vortex, buuuuuuuuuuuuuut.... we will probably give you money anyway."
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MM
That which does not kill me postpones the inevitable.
I don't think there's any way all three can survive.
I think they've got to pick the best one or two and come up with a plan to prop them up until they can sustain themselves.
To me, it seemed like that's what Ford was trying to position itself for. Sort of like they were saying "look, we're not in nearly as bad of shape as these other two".
We were watching some of that at lunchtime. And it is just depressing. GM wants $4 billion so they can survive to January 31st. Chrysler wants $4 billion to survive until March 31st. It is not good.
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Stop trying to be what you see. Be what you ought to be.
The protestors were kind of a fun interruption. They were also chanting "The bailout is a sell out!" I wonder how that one woman got in with the pom-pom? I sat in on one session of the House of Representatives when I was in DC last year. They don't let you take ANYTHING in with you when you go in the viewing balconies.
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MM
That which does not kill me postpones the inevitable.
I don't know if it's true but the anchor on C-Span mentioned a report available online that shows the big 3 spent over $50 billion on lobbyists during the run up to the election!
It wouldn't surprise me. At the end of today's hearing, Sen. Dodd (Chairman of the Senate Banking Committee) basically said that he wants to give the them the money. I'm sure he will pressure others to fall in line.
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MM
That which does not kill me postpones the inevitable.
I know, I know... bad Mema!!
