The Conservative Cave
Current Events => Breaking News => Topic started by: TheSarge on November 20, 2008, 05:59:58 AM
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WASHINGTON (AP) - A Democratic Congress, unwilling or unable to approve a $25 billion bailout for Detroit's Big Three, appears ready to punt the automakers' fate to a lame-duck Republican president. Caught in the middle of a who-blinks-first standoff are legions of manufacturing firms and auto dealers—and millions of Americans' jobs—after Senate Democrats canceled a showdown vote that had been expected Thursday. President George W. Bush has "no appetite" to act on his own.
U.S. auto companies employ nearly a quarter-million workers, and more than 730,000 other people have jobs producing the materials and parts that go into cars. About 1 million on top of that work in dealerships nationwide. If just one of the auto giants were to go belly up, some estimates put U.S. job losses next year as high as 2.5 million.
"If GM is telling us the truth, they go into bankruptcy and you see a cascade like you have never seen," said Sen. George V. Voinovich, R-Ohio, who was working on one rescue plan Wednesday. "If people want to go home and not do anything, I think that they're going to have that on their hands."
The automakers—hobbled by lackluster sales and choked credit—are burning through money at an alarming and accelerating rate: about $18 billion in the last quarter alone. General Motors Corp. has said it could collapse within weeks, and there are indications that Chrysler LLC might not be far behind. Ford Motor Co. has said it could get through the end of 2008, but it's unclear how much longer.
For now, however, with the federal emergency loan plan stalled in the Senate, lawmakers in both parties are engaged in a high-stakes game of chicken, positioning themselves to blame each other for the failure.
Senate Majority Leader Harry Reid, D-Nev., scrapped plans Wednesday for a vote on a bill to carve $25 billion in new auto industry loans out of the $700 billion Wall Street rescue fund.
http://www.breitbart.com/article.php?id=D94IAPNG0&show_article=1
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I don't remember any bailout plans in the 70's. Somehow they survived.
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I don't remember any bailout plans in the 70's. Somehow they survived.
Actually Chrysler received a bailout in the form of a loan....that was paid back with interest ahead of the repayment schedule.....
doc
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Somehow, someway the Dems failure will be blamed on Bush and the Republicans. :banghead:
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Somehow, someway the Dems failure will be blamed on Bush and the Republicans. :banghead:
Oh, no doubt. But so what, they are going to blame the Republicans for the entire auto industry mess anyway, even if it was actually created by a union monopoly, its pet Congresscritters, a hereditarily Democrat-run city and state, and weak corporate management that played footsie with all of the above for many years under the "Tommorow never comes" theory. So screw it, if we're going to be blamed for it, let's actually do it.
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Breaking news on Fox News. A compromise deal may have been reached.
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Breaking news on Fox News. A compromise deal may have been reached.
****.
What are the odds that President Bush will grow a conservative principle, long enough to veto said "compromise": aka "BOHICA"?
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****.
What are the odds that President Bush will grow a conservative principle, long enough to veto said "compromise": aka "BOHICA"?
About 30:1 against him doing anything that makes economic sense, I'm sure. Whatever it is will not touch the basic problem of the unsustainable union overhead, or the Dems would not even consider it. Therefore it will be life support to limp them through until Obama is sworn in, and it becomes his problem. I suppose there is a positive side to that in purely political terms, but it pisses me off no end for the economic folly of it.
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Chapter 11 is not so bad. Lots of companies come out of it.
The important thing is to make cars people want to buy. I still don't see that happening.
Chapter 11 could solve the problem of union contracts that pay folks who are not working.
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Somehow, someway the Dems failure will be blamed on Bush and the Republicans. :banghead:
just hope the asses get their supermajority,, it will be a little harder :-)
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Breaking news on Fox News. A compromise deal may have been reached.
Is this from (gag) MSNBC it?
http://www.msnbc.msn.com/id/27824057/
According to that onlne rag, all three have to submit a "business plan" to Harry Reid before they get their $25,000,000,000 +. As if this news will stabilize Wall Street.
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Is this from (gag) MSNBC it?
http://www.msnbc.msn.com/id/27824057/
According to that onlne rag, all three have to submit a "business plan" to Harry Reid before they get their $25,000,000,000 +. As if this news will stabilize Wall Street.
Like the dims would be able to understand a "business plan." Business plans are for people who make their own money, not those who just spend others'.