Bailout Watch 119: Launch the Whaleboats!

bailout watch 119 launch the whaleboats

Jesus, can I stop blogging now? Apparently not. Bloomberg reports that “Michigan lawmakers are asking Federal Reserve Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson to use their authority to ‘promote liquidity in the U.S. auto industry,’ according to a draft letter they plan to send tomorrow. The letter will ask the Fed and Treasury chiefs to use their authority under the Emergency Economic Stabilization Act [EESA] to help the ailing U.S. automakers.” Question: how do you define sensible? “The auto industry is facing unprecedented struggles, and it deserves a partnership from Washington,” Representative Joseph Knollenberg, a Michigan Republican, said in a statement. “I’ve fought for this kind of sensible assistance for years, and I hope we can make it a reality now.” In all likelihood, immediate “relief” will probably take the form of a federal buyout bad car loans. “Treasury Assistant Secretary Kevin Fromer, in a letter to Knollenberg earlier this month, confirmed that the EESA money could be used to buy car loans and mortgages held by auto-finance companies such as GMAC, Chrysler Financial and Ford Motor Credit.”

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  • 1996MEdition 1996MEdition on Oct 23, 2008
    no_slushbox: The honorable representative from state (I recommend we give its statehood to Puerto Rico and make it a non-voting territory) of Michigan can [earmuffs] fuck himself with a fork Good thing I have a liquid-proof keyboard

  • Kurt. Kurt. on Oct 23, 2008

    Interesting twist. It is all becoming clear. Cerberus is out to "sell" Chrysler Motors to GM in trade for the remaining GMAC financing they don't already own. That would mean Cerberus keeping Chrysler Financing as well. Seems like a good deal for GM as they would get Chryslers stash of cash and get rid of their hemoraging cash flow that is GMAC. But why would Cerberus want GMAC (not to mention Chrysler Financial)? Well, if the Honorable Representitive has his way, the US Gov will come in and buy all those failing loans. What was a loss is now a profit. It's all starting to make sense... Kurt.

  • EBFlex What a colossal waste of money. But this installed administration has yet to spend one cent on something that is actually useful and actually leads to some progress. But apparently this is just what we need….a bunch of extremely overpriced but short ranged busses. It’s amazing that all our problems are solved that they have time to waste money on these little pet projects.
  • Hector How much for steering column?
  • John S. Beautiful car, fun series installment, Corey.
  • FreedMike Any link to the grant applications that were denied?
  • FreedMike I'm amazed it took this long for them to do a Challenger convertible.
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