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It's About Time ... US Auto Gets a Loan. - Sauce1977 [entries|archive|friends|userinfo]
Sauce1977

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It's About Time ... US Auto Gets a Loan. [Dec. 19th, 2008|05:30 pm]
Sauce1977
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[Current Location |Detroit, MI, USA]



The Legislative branch resembles a dead arm of America.

The utter shame of wasting a month of time will not be lived down. The loan was needed yesterday. I wish the same humiliation and purgatory on all members of Congress who opposed common logic. Also, I wish for Congress to undergo its own reformation, since a frightening number of representatives are not fit to represent their people.

Shelby, Corker, and your friends and family, may you all go to hell. Such a fate for you would be too kind.

At least US Auto was afforded a lifeboat. It's the least America can do. Without the automobile, this land resembles a quaint collection of cramped European village shitholes. America wouldn't be ... America.

Unfortunately, the loans won't stop there. Expect the worst. Several industries will likely need aid. The gargantuan aid afforded to Wall Street did little to help credit out of hospice. They managed to almost take US Auto with them. GM, Ford, and Chrysler won't be the only ones. Regardless of what the US Government wants to see for viability from US Auto, the unfairness of the initial bailout to Wall Street will prove the benchmark for all future aid to other industries. What is the alternative? Do you think the US Government can just go back and re-engineer restrictions and provisions upon Wall Street? Do those spent TARP dollars just magically get re-routed under such re-engineered terms?





Bush offers $17.4B in auto loans
Auto package to come with new wage limits sought by Republicans

By TODD SPANGLER and JUSTIN HYDE • FREE PRESS WASHINGTON STAFF • December 19, 2008

WASHINGTON -- Saying he has to “shield the American people from a harsh economic blow at a vulnerable time,” President George W. Bush this morning announced plans to immediately extend $13.4 billion to struggling Detroit automakers, adding that in normal times it is a step he would be unlikely to take.

It signals the end of an anxious week for Detroit’s auto industry, with worries that the Bush administration might not move fast enough to keep General Motors and Chrysler LLC from collapsing, which both said could occur if they didn’t receive a quick infusion of capital.

The terms of the loans authorize $4 billion each for GM and Chrysler on Dec. 29 and another $5.4 billion for GM on Jan. 16.


“Today’s actions may not be perfect and come later than I hoped,” said Sen. Debbie Stabenow of Michigan. But at the very least they “ensure that our domestic automakers willl stay solvent into the new year."


The Senate failed to pass a rescue plan last week, leaving it up to the White House to help the carmakers, even though the president had earlier signaled his reluctance to use money from the $700 billion authorized by Congress to bail out Wall Street financial firms this fall for that purpose.


In the end, Bush felt he had no choice – he said in his statement this morning that the necessary legal and financial preparations for an orderly bankruptcy were not in place and a disorderly one could have disastrous effects – and authorized the $13.4 billion from the Wall Street cash.


Another $4 billion could be authorized in February if necessary and Congress and President-elect Barack Obama decide to do so.


Bush said with the economy shedding jobs and the nation in a recession, he could not risk the added stress which would be caused by the collapse of one or more domestic automakers.


“If we were to allow the free market to take its course now it would almost certainly lead to disorderly bankruptcy and liquidation for the automakers,” said Bush. “These are not ordinary circumstances.”


He left the door open for the automakers to file for bankruptcy after March 31 if they cannot prove they are on the road to sustained viability by then and called on all parties – workers, management, creditors, suppliers and dealers – to make the “meaningful concessions” needed to protect the industry’s future.

In a press briefing at GM’s Renaissance Center world headquarters, GM Chairman and CEO Rick Wagoner thanked the administration for the agreement and said the funds would be adequate to let GM carry out its restructuring plan.


“People should have a lot of confidence that not only General Motors but the U.S. industry is on the right path,” he said. “We’re excited about that future.”


“Our focus now turns to fully and rapidly implementing the restructuring plan that we reviewed with Congress earlier this month,” Wagoner said. “It’s really a blueprint for a new General Motors, one for our second 100 years.”


GM said it signed the basic agreement or “term sheet” just minutes before 9 a.m. today and expected to draw down the first of the available federal funds by Dec. 29.


Treasury Secretary Hank Paulson – who, like the president, was against using the Wall Street bailout money for automakers – said the loans will “prevent significant disruption to our economy, while putting the companies on a path to the significant restructuring necessary to achieve long-term viability. At the same time, we are including loan provisions to protect the taxpayers to the maximum extent possible.”


Chrysler LLC Chairman and CEO Bob Nardelli thanked the president and the Treasury Department for their confidence in the company at a time when many Americans argued the struggling companies should be allowed to go bankrupt.


“A letter of intent was signed which outlines the specific requirements that must be achieved,” said Nardelli. “These requirements will require consideration from all constituents, requiring commitment first in principal, leading to implementation this coming year. Chrysler is committed to meeting these requirements.”


Ohio Sen. George Voinovich, a Republican who fought for passage of the rescue plan last week, issued a statement saying he was “grateful the president stepped in to help thwart a disaster that would have sent our state over the cliff.”


“The president has supplied oxygen to a patient fighting to get healthy through restructuring and becoming more competitive,” said Voinovich.


The package includes many of the restrictions that were included in the failed legislation and requires the companies to achieve “positive net value” by March 31 and produce plans toward viability. If the administration is not satisfied, the loans could be called off – essentially forcing any of the companies into bankruptcy.

Staff writer John Gallagher contributed to this report.
**************************************************************


I want to stress something that even an irresponsible shoe-target said, as quoted from the Freep article:

“If we were to allow the free market to take its course now it would almost certainly lead to disorderly bankruptcy and liquidation for the automakers,” said Bush. “These are not ordinary circumstances.”


Also, I stress that this same President of low esteem could come to even the most basic logical conclusion:

In the end, Bush felt he had no choice – he said in his statement this morning that the necessary legal and financial preparations for an orderly bankruptcy were not in place and a disorderly one could have disastrous effects – and authorized the $13.4 billion from the Wall Street cash.

So, how fucking stupid does the rest of the Republican opposition look? They look like clowns to me. You people are sitting on hot seats. I hope you have an ass made of Nomex.


It burns.Hot hot hot.It burns.Hot hot hot.It burns.Hot hot hot.It burns.Hot hot hot.It burns.Hot hot hot.It burns.Hot hot hot.


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