Bailout Watch 306: The End of the Beginning
Automotive News [sub] reports that Uncle Sam is set to transfer $4b worth of taxpayer funds to GM and Chrysler. Each. The e-checks were due to be signed by close of play today, but got hung-up on “technical issues.” So, tomorrow then. This is, of course, only the first installment. GM scarfs another $9.4b early next year, $4b of which will require congressional approval. “The automakers must file plans by Feb. 17 describing how they will restructure to become viable for the long term. Unless the agreement is changed by the Obama administration, a president’s designee, or car czar, is to decide by March 31 if an automaker’s restructuring plan is sufficient. If not, the first loans will be called in, possibly forcing the company into bankruptcy.” Possibly? Anyway, I am disgusted that this deal went down without public scrutiny of GM or Chrysler’s books– or a call for the MSM for same. While our duly elected representatives supposedly saw the “real” books– but couldn’t reveal the information for “commercial reasons”– last week’s Wall Street Journal story on Cerberus’ ownership of ChryCo’s HQ indicates that there’s ample reason to believe there’s something rotten in the fortress of Detroit. You know, other than President’s Bush bald-faced usurpation of Congressional power and federal funds to prop-up two dying commercial (non-banking) enterprises. The Bailout Watch continues.
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I would tell all of you exactly what is going on here, but the black helicopters are presently scanning the neighborhood. Maybe later, if they don't come to get me in the meantime. Anyhow, not to start another conspiracy theory, but why hasn't the SEC ended mark to market. Hasn't it been pretty much shown to be a loser?
"I am disgusted that this deal went down without public scrutiny of GM or Chrysler’s books..." Get use to being disgusted RF especially after 20 January when the children will be in charge of the FedGov candy store...These "Bailout Watches" are going to become infuriating and comical all at once...Like what is was in the old Soviet Union.