Bailout Watch 292: Yeah, Too Quiet…
It seems scarcely credible that GM and Chrysler’s fate– or lack thereof– now rests entirely in the hands of The President of the United States. Or, more precisely, his staff. Who, according to The Wall Street Journal, “spent the weekend poring over the auto makers’ books to assess their financial needs.” Which, to my mind, is a bit like saying they’re pawing over the automakers’ entrails. Of course, I would never stoop that low, busy as I am wetting my metaphorical finger and sticking it into the rarified air of the autoblogosphere, trying to divine which way the Divine Wind is blowing. Ominously, The Journal reports “The administration is trying to determine how much money it will take to help the car companies, and is discussing a rescue totaling $10 billion to $40 billion or more.” Sneaking in $14b or so from the remaindeer [sic] of the much-vilified $700b Troubled Asset Relief Program by executive fiat to shove this mess on Messr. Obama’s plate is one thing. Finding 40 billion dollars or more for the failed automakers is quite another. In other words, there are only two ways this thing can go. Either a short term “bridge loan to nowhere” or…
“Two people familiar with the situation said the government is also considering requiring any auto makers seeking aid to file for bankruptcy. Under such a scenario, the money would be used as so-called debtor-in-possession financing. Outside experts said such financing could require $50 billion or more for GM and Chrysler combined.”
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$40 billion here and there, and soon you're talking real money. Or not. Paper money, paper constitution. Job One for GeneralChrysler NancyPelosi Motors: Build a car twice as crappy as a Chrysler Sebring with Saturn ION interior. I dare you.