Bailout Watch 146: Obama Win Emboldens Bailout Backers

Less than 24 hours after Senator Barack Obama won the race for the U.S. presidency, Bloomberg reports that Motown’s mauled mavens will step-up their campaign to suckle on the milk of federal tax money. “GM, the biggest U.S. automaker, must get government aid because ‘time is very short,’ said Roger Altman, the former Treasury official advising the company in its merger talks with Chrysler LLC. ‘The consequences of a collapse by GM or all three could be very severe.'” (As opposed to slightly severe.) Step 1: change the terms of the Department of Energy’s $25b worth of no to low-interest loans. Retooling? Fuck that shit. “The industry’s agenda for the new president will be topped by intensified calls for an immediate disbursement of $25 billion in low-interest loans signed into law by President George W. Bush Sept. 30. While the money is supposed to be for the development of fuel-efficient vehicles, automakers argue it should be freed up to meet current capital needs.” Step 2: get a slice of the already-approved banking bailout bucks. “Sympathetic lawmakers also have been calling for auto lenders, if not the manufacturers themselves, to get some of the $700 billion bailout fund set aside for financial institutions.” Do you really have the stomach for this stuff? Read on…

Step 3: revisit the $10b in federal “assistance” for a GM – Chrysler merger. “The outcome of the merger talks between GM and Chrysler may hinge on whether the companies can get government aid. The negotiations may intensify this week after the election, according to people familiar with the matter.” Step 4: threaten the president-elect. “One or more automaker failures ‘would be a difficult way for a brand-new administration’ to take office, said Altman, an Obama supporter whose Treasury Department service included working as deputy secretary under President Bill Clinton.” Or is that step 1? Anyway, The Reckoning is postponed until further notice.