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