Bailout Watch 154: Pelosi Set to React to GM/Ford Bloodbath With $25b Band-Aid

Robert Farago
by Robert Farago

Democratic House Speaker Nancy Pelosi has met with the heads of Ford, GM, Chrysler and the U.A.W. While the meeting was closed to the press (way to go government openness), what’s the bet the words “how much?” escaped her plumpness-assisted lips? The Detroit News reports that Pelosi emerged from the confab with her political PR prepared for battle: “‘We may need to make a statement of confidence in our auto industry,’ Pelosi told NPR this afternoon. ‘We’re not saving those companies, we’re saving an industry. We’re saving an industrial technological and manufacturing base… It’s about jobs in America.'” More interestingly, “Congressional leaders are likely to put out a statement on Friday — the same day that General Motors Corp. and Ford Motor Co. are expected to announce heavy third-quarter losses.” So here’s how it goes down: Ford and GM announce catastrophic losses and third-degree cash burn, the stock market freaks (for the few remaining hours before the weeked) and Pelosi and Co. ride to the rescue with a fast-tracked bailout plan, which may or may not be pegged at $25b (for starters). Then it’s a race to the trough, as Cerberus hopes and prays no one notices that it’s using your money to cover their ass.

Robert Farago
Robert Farago

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  • Robert Schwartz Robert Schwartz on Nov 06, 2008

    "We’re saving an industrial technological and manufacturing base" Yeah -- pushrod V8s forever!

  • Jacob Jacob on Nov 07, 2008

    blindfaith, So do you call the transplant factory workers in Texas, Alabama, Mississippi, and Indiana "Asian poor" as well? Toyota, Hyundai, Nissan, Subaru are building a big chunk of their US sold vehicles HERE. So don't feed me the rubbish about unfair competition. The Big 2.1 are going out of business because of decades of moronic management decisions and greedy unions who think that an assembly line workers should NEVER be fired, should have their retirement funded by the company, and that UAW workers should be earning more than say UC Berkeley's fresh graduate with a degree in civil engineering. And by the way, Japanese market has been open to foreign competitors for more than a decade. However, the American car companies will never succeed there even if they try. How can they succeed in selling cars to Japanese, some of the most misunderstood and quirkiest consumers of the world, if the Big 2.1 still has not figured out how to build cars Americans want to buy?

  • Geeber Geeber on Nov 07, 2008
    Point Given: I’m not anti wal-mart, or anti GM, but I’m very suspicious of a business plan built on low profit-high volume, which strikes me as being GM’s business model except with local production. Yes, likely in response to Hyundai/Kia/whoever… No, it is in response to Henry Ford I's business plan. This has been the method of operation for the automobile industry since 1908. Contrary to popular belief, Walmart didn't invent it. Point Given: VW is able to make it work with what is probably a more expensive locale to build cars(german). A fair number of VWs sold in the U.S. are built in Mexico, and even though it sources cars from a low-cost location for sale in the U.S., VW still loses money on its North American operations.
  • Blindfaith Blindfaith on Nov 07, 2008

    The cars that our built here are assebled here. They're parts are created by $5.00 an hour workers. If you believe it is healthy for the US to outsource all our products. Let me remind you that the following can be outsourced but the rich for their children's sake will not allow it. Outsourcing to reduce the rich peoples source of income. Many hospital procedures such as knee, hip, and other replacements: heart,kidney transplants.For the transplants they have many poor people that would be glad to sell a kidney. They would sell a heart to help their dying child. Plastic surgery. Doctors visits can be done on a phone by nursing attending the direct contact. These can be done for $5.00 Attorney's fees for many of the legal requirements such as house closings. Trusts and fondation or will documents. CPA work is simply definition of assets and liabilities based on government tax policies. So, give away the work you want but remember you are just being short sited.