All those deficits by institutions from PBGC to Fannie cannot be easily patched up by simply a bailout. At this point with 0% interest rate, more Fed bailouts could only mean printing more money, which means an automatic tax on every person holding US dollar. In effect, that’s spreading the pain of deficit to every [...]
As a third world country I won’t.
Instead of a V-shaped recovery, Johnson predicts it will look more like a “bathtub,” with slippery sides that will be impossible for the global economy to climb.
When you look at the depression, it really was just a contraction caused by over consumption. It really was just a series of [...]
Consumer Reports may be good for testing a blender or a toaster but when it comes to anything more complicated such as cars and computers, CR is about as trustworthy as a garbageman advising you on stocks.
Look at the educated automotive testing such as JD Power or Edmunds. In most of the Categories, GM and [...]
Labor leaders in Detroit hailed the announcement by the administration.
“I think it’s great news, the responses we’ve been getting out of the White House and the Treasury,” said Ron Gettelfinger, the president of the United Automobile Workers union. “It’s important for the White House to exert their influence to release this money as quickly as [...]
Ford: $70.51 ($141,020 per year)
GM: $73.26 ($146,520 per year)
Chrysler: $75.86 ($151,720 per year)
Toyota, Honda, Nissan (in U.S.): $48.00 ($96,000 per year)
According to AAUP and IES, the average annual compensation for a college professor in 2006 was $92,973 (average salary nationally of $73,207 + 27% benefits).
Bottom Line: The average UAW worker with a high school [...]
The senate’s reluctance to give Dtetroit $14 billion aside, here are two news items from last night that I think foretell what will happen in the next several weeks:
1. GMAC was only able to get 25% of its investors to restructure their portions of the company’s debt; about 75% of the investors were needed to [...]
According to CNN if the Big 3 bailout is rejected by Congress the impact on the US economy would be devastating. When you combine the possible job cuts within each of the Big 3 automakers with the job losses in the satellite industries of car dealerships and auto parts suppliers the number of people poised [...]
By 24/7 Wall St.
According to a report in The Wall Street Journal, “Chrysler hired the prominent law firm of Jones Day several weeks ago as bankruptcy counsel, a move that suggests the auto maker is preparing for imminent financial failure should its efforts to persuade Congress for federal rescue funds fall short.”
Douglas A. McIntyre
Possibly Related [...]
by Bertel Schmitt
Chinese carmakers SAIC and Dongfeng have plans to acquire GM and Chrysler, China’s 21st Century Business Herald reports. LINK A National Enquirer the paper is not. It is one of China’s leading business newspapers, with a daily readership over three million]. This newspaper cites a senior official of China’s Ministry of Industry and [...]
Why risk taxpayer money saving bad management when another option is available?
I propose that the UAW use it’s strike, retirement funds, etc. and buy both GM and Ford. If necessary the US Government can loan the UAW the $5.6 billion needed rather than the $25 billion asked for by GM, Ford, and Chrysler management. [...]
“In the first half of 2008, GM spent $7.3 million on Washington lobbying activities. Ford shelled out $3.8 million, and Chrysler another $3.3 million in gaining the ears of those who redistribute taxpayers’ wealth.
As the table below shows, in the last 10 years, Detroit’s Big Three have expended $228.4 million in lobbying costs in [...]
General Motors Cutting More Jobs and Fast-Tracking Plant Closings Amid Merger
Talks With Chrysler, an Industrial Info News Alert
SUGAR LAND, TX, Oct 22, 2008 (MARKET WIRE via COMTEX) — Researched by Industrial
Info Resources (Sugar Land, Texas) — The final 10 weeks of 2008 will go a long
way in deciding the near-term future of automotive giant General [...]
LONDON (MarketWatch) — General Motors is looking for a sizeable capital
injection from outside investors as a possible alternative to a deal with
Chrysler, the Financial Times reported. They said an investment would be along
the lines of Warren Buffett’s recent investments in Goldman Sachs and General
Electric. It comes as Chrysler’s majority owner Cerberus also was reportedly in
talks [...]
By Alexander Davis
SAN FRANCISCO (MarketWatch) — General Motors Corp. reportedly has held preliminary talks to acquire Chrysler LLC, against the backdrop of an increasingly bleak decline for the auto industry. Reports on Friday night by The Wall Street Journal and the New York Times both cited unnamed people familiar with discussions between the two U.S. [...]
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