A challenger appears

Discussion in 'OT Driven' started by Cannondale, Dec 12, 2008.

  1. Cannondale

    Cannondale OT Supporter

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    http://finance.yahoo.com/news/White-House-considers-help-apf-13817782.html

    White House says it may step in to help automakers

    White House says it may step in to help automakers with Wall Street bailout money



    • Ken Thomas and Julie Hirschfeld Davis, Associated Press Writers
    • Friday December 12, 2008, 1:58 pm EST
    WASHINGTON (AP) -- Under mounting pressure to act, the Bush administration said Friday it was ready to step in and prevent the U.S. auto industry from collapsing after the Senate refused to pass a rescue bill endorsed by the White House and congressional Democrats. The most obvious source of help was the Wall Street bailout fund.

    "The current weakened state of the economy is such that it could not withstand a body blow like a disorderly bankruptcy in the auto industry," White House press secretary Dana Perino said.
    Treasury spokeswoman Brookly McLaughlin said, "Because Congress failed to act, we will stand ready to prevent an imminent failure until Congress reconvenes and acts to address the long-term viability of the industry."
    Several administration officials said no specific announcement of a bailout was imminent, suggesting there was still time before General Motors Corp. and Chrysler LLC, the companies in most peril, would run out of cash. These officials spoke on condition of anonymity, saying they were not authorized to discuss internal deliberations.
    The Wall Street bailout fund was one of the few remaining options for GM and Chrysler, which have said they could run out of cash within weeks. President George W. Bush had originally refused to use the bailout fund to help the automakers, insisting that help come from Congress. But the White House said it must reconsider after the Senate failed to agree on a $14 billion rescue plan.
    "Congress spoke last night. They don't have the votes to do anything," Perino told reporters on Air Force One as Bush traveled to a commencement speech in Texas. "They didn't get it over the goal line and so we have to consider what other options we would take." She declined to say when a decision would be made.
    President-elect Barack Obama said he was disappointed that the Senate failed to act. "My hope is that the administration and the Congress will still find a way to give the industry the temporary assistance it needs while demanding the long-term-restructuring that is absolutely required," he said in a statement.
    About $15 billion from the first half of the $700 billion financial bailout remains uncommitted. Treasury in the past two months has pumped out about $335 billion to banks and insurance companies. To begin tapping the second half of the bailout, the administration would first have to notify Congress, which could block it or put new conditions on how the money is used.
    In Detroit, United Auto Workers President Ron Gettelfinger welcomed the Treasury's statement Friday.
    "I think it's great news -- the response that we've been getting out of both the White House and the Treasury," he said. "I'm not sure what this means, how much they're talking about, any terms or conditions that are associated with it. ... But I do know this, we cannot afford for there to be a run on the banks, if you will, at those companies."
    General Motors said in a statement that it was "encouraged by the White House's willingness to consider other options, including the TARP program, for immediate aid to the domestic auto industry." The company said it would work closely with the administration on solutions "that could prevent further damage to our nation's economy."
    The Senate's rejection of the $14 billion rescue plan and further evidence of a deepening global recession made world stock markets plunge. U.S. stock index futures pointed to a big sell-off later on Wall Street. The Dow Jones industrial average fell more than 200 points as the market opened but pared its losses somewhat after the White House and Treasury statements, and other indicators followed suit.
    Gettelfinger blamed the defeat of the auto industry bailout bill in Congress on southern Senators who he said are anti-union and anti-Detroit.
    Sen. Bob Corker of Tennessee, a key Republican negotiator, said Friday the administration undercut his negotiating power with the UAW by making clear from the start that the industry would get an emergency life line if talks with Congress collapsed.
    "We'd be a whole lot better off toward getting a great agreement if the White house hadn't said that it was going to put money in," Corker told reporters Friday. "I think it being known that the White House at the end of the day would probably blink probably helped keep us from a deal."
    The Senate rejected the bailout 52-35 on a procedural vote Thursday night -- well short of the 60 required -- after the talks fell apart.
    "I dread looking at Wall Street," said Senate Majority Leader Harry Reid in anticipation of Friday's stock market reaction. "It's not going to be a pleasant sight."
    The Bush administration has repeatedly said the Wall Street bailout fund should not be used for emergency aid to the automakers because it was designed to restore stability to the financial sector. But with the Senate's action, Detroit's supporters looked to the White House for help.
    "Plan B is the president," said Sen. Carl Levin, D-Mich. House Speaker Nancy Pelosi said action by Bush was the "only viable option."
    "For God sakes, I hope the president acts," exclaimed Mayor Virg Bernero of Lansing, Mich.
    Detroit's carmakers employ nearly a quarter-million workers, and more than 730,000 others produce materials and parts for cars. If one of the automakers declared bankruptcy, some estimate as many as 3 million U.S. jobs could be lost next year.
    Many congressional Republicans and some economists said the companies would be best to pursue a prearranged bankruptcy that would allow them to restructure quickly. But most Democrats and the carmakers rejected that, arguing it would quickly lead to liquidation because consumers would never buy cars from a bankrupt auto company.
    Perino, speaking on Bush's plane, said that, "Under normal economic conditions we would prefer that markets determine the ultimate state of private firms. However, given the current weakened state of the U.S. economy, we will consider other options if necessary, including use of the TARP (bailout) program to prevent a collapse of troubled automakers."
    "A precipitous collapse of this industry would have a severe impact on our economy and it would be irresponsible to further weaken and destabilize our economy at this time," she said. "While the federal government may need to step in to prevent an immediate failure, the auto companies, their labor unions and all other stakeholders must be prepared to make the meaningful concessions necessary to become viable."
    Bush, before departing the White House, consulted with chief of staff Joshua Bolten and senior counselor Ed Gillespie, among others.
    "Obviously, we've talked about the urgency of the situation," Perino said.
    Associated Press Writer Darlene Superville contributed to this story.

    _____________________________________________________________


    Just when a little ray of hope shines through from the supreme court not going for the bailout, then this has to happen. I swear to God, this nation is going down the toilet quickly.
     
  2. mariners216

    mariners216 New Member

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    :werd: thank god the supreme court didn't pass the bailout
     
  3. Cool~Breeze

    Cool~Breeze New Member

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  4. Cannondale

    Cannondale OT Supporter

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    Cliffs: The Executive branch now completely doesn't give a fuck what the Judicial branch says.
     
  5. KM

    KM New Member

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    Fuck the government.
     
  6. GoodKnight

    GoodKnight New Member

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    I GOT YO CHECKS AND BALANCES HERE, NGA.
     
  7. psykosis

    psykosis Go placidly amid the noise and the haste

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    The judicial branch?


    I don't believe the judicial branch has jack to do with this.
     
  8. Cannondale

    Cannondale OT Supporter

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    The Judicial branch (SCOTUS) said no we will not be bailing out the auto unions. Executive branch is thinking about doing it anyway.

    No it has very little to do with the Judicial branch, other than the fact that no one seems to listen to them anymore.
     
  9. yofmatt

    yofmatt New Member

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    i don't get how OT encourages them all to fail, as if ppl don't need jobs, as if it has zero effect on them. We'll just close every business that exists or has ever been founded in america, everyonez can just work at home am i rite!?
     
  10. Cannondale

    Cannondale OT Supporter

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    It's not about them failing or not failing, it's about them pulling their own ass out of the fire, instead of our country going into more debt to fix GM and Chrysler's screwups. If they file for Chapt. 11 and get the unions out of there they might be able to do something.
     
  11. Cannondale

    Cannondale OT Supporter

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    It was, I screwed up.

    At any rate, there is no reason for the automakers to be denied a bailout only to have it handed to them anyway. The only people interested in bailing them out have to have ties to their pocketbooks, that money is going to end up in someone elses bank account once they receive the baillout. No one that isn't tied to this could possibly believe this money will help make them profitable again.
     
  12. toolboxolio

    toolboxolio Two for the pink, one for the asshole.

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    Bush is such a huge fuckup, why not do some more fuckup shit before leaving?
     
  13. yofmatt

    yofmatt New Member

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    That's assuming they'll have the funds and competence TO get themselves back on their feet. If they fail again after the economy has improved, then by all means they fully deserve it, there's no excuse, but there's no single cause behind them failing, there's many. It just seems more important now more than ever for ppl to have jobs, even if it means we can't teach unions and CEO's a lesson.
     
  14. psykosis

    psykosis Go placidly amid the noise and the haste

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    Hmmm. I thought this was basically between the Senate and Dubbya now. Senate said now, but Dubbya wants to say yes.


    In any case, I do not support it. I think a loan/bailout is possible, but not under the current circumstances. I really don't think anything will change until the system is shaken to the core as no one wants to make any meaningful sacrifice to accomodate proper reform. On the other hand, the sins of a few at the top could cause the unemployment of thousands, if not, millions, of people. As a collective whole, are they a collective "casualty of (business) war"? I really am torn on this.

    Oh, and the idea of a "car czar" scares the FUCK out of me. Yeah, let's hand over what seems to be a controlling interest in our domestic automotive industry over to 1 individual.
     
  15. Cannondale

    Cannondale OT Supporter

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    Another $14 billion dollars disappearing into nothingness if (more like when) they would fail again is going to hurt us too. They will not get back on their feet, it's not worth giving them money when everyone knows with the union labor force will keep them from being profitable.
     
  16. Cannondale

    Cannondale OT Supporter

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    It is between the Senate and Dubya, I screwed that one up.

    That Car Czar guy has a TV show and looks like a typical wheel and deal guy. I agree that we shouldn't be handing anything over to him. Why we have to choose between people like corrupt automaker unions and sleazy car salesman is truly horrific.
     
  17. KM

    KM New Member

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    When I first read about how they wanted to have a "car czar" I laughed my fucking ass off... then I got really, really scared.
     
  18. psykosis

    psykosis Go placidly amid the noise and the haste

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    If 3 CEO's can't get it right, how would 1?

    I don't care for the unions, and I'm glad the deal died because of them, but I mostly glad because I do not want to see 1 individual running the automotive industry.
     
  19. Throwdown

    Throwdown whore destroyer

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    ooooooooh.... now the thing on the website makes sense to me... i was so confused.

    [​IMG]
     
  20. Boomdart

    Boomdart New Member

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    So the gov will bail out creditors and banks, that fuck people every hour of every day of every month all year long... and have no hard feelings about doing so either...

    but they won't save an american manufacturing company that supplies many people with jobs.

    Hell, we should just stop all production in america and buy everything over seas.
     
  21. yofmatt

    yofmatt New Member

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    i just can't see how everything's gonna be honky-dory with everyone without a job, they'll still end up in unemployment or welfare & still end up costing taxpayers money. And if you think stimulating the economy is hard now, wait until the suppliers AND big 3 employees are out of a job. 2009 will be america's worst year in history.
     
  22. Cannondale

    Cannondale OT Supporter

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    How about all those people that were getting paid $70 an hour to put on bolts go dig ditches or work construction? We have plenty of illegal immigrants using jobs that could very easily be given to all these UAW slackers. Then we wouldn't have massive unemployment and we still wouldn't be handing money out to a company that will die anyway. It would be like throwing that money in a fire if we "bailed out" the auto makers.
     
  23. psykosis

    psykosis Go placidly amid the noise and the haste

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    I feel like an absolue dick saying this, but:

    Many of those people should not have jobs. And not because they are overpaid or underskilled (is that a real word?), but because the companies are overly bloated. They are like an overgrown bush. On the exterior they are vibrant and healthy, but just beyond the outer edge they are overgrown dead brush. With a proper trim back, then everything from the top down (or up, as it were) become vibrant and much more healthy. But ask the branches that are about to be cut how they feel about it...
     
  24. Cicada

    Cicada OT Supporter

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    :ugh:
     
  25. psykosis

    psykosis Go placidly amid the noise and the haste

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    keep reading. He mentioned he mistyped.
     

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