Should the government bail-out include domestic automakers? - Page 34

Danase · 12-19-08, 05:19

No snow at 4:00 this morning and then like 6 inches at 7:00! The drive home is going to be fun! Got behind a young lady in a Cadillac this morning doing about 20 mph and get next to her and see her on her cell phone. Glad my ride is 5 minutes! LOL

Len_A · 12-19-08, 05:29

Quote:

Originally Posted by Danase

No snow at 4:00 this morning and then like 6 inches at 7:00! The drive home is going to be fun! Got behind a young lady in a Cadillac this morning doing about 20 mph and get next to her and see her on her cell phone. Glad my ride is 5 minutes! LOL

Holy crap, is it nasty out. Are you getting the sleet mixed with the snow? I was going to go out and at least shovel a path for my dog Sisko to go take care of business - just as I'm going out, the wind gusts pick up and the sleet came down for about six or seven minutes!! Sisko took one look at it, and then looked up at me, and went back in the living room and got back in his dog bed. Like "No way I'm going in that, Lenny! I'll hold it for a little longer!" He finally went out five mintutes later, and the snow is up past his chest (he's an eighteen pound Shih Tzu, so he's already low to the ground.

Len_A · 12-19-08, 05:30

Big announcement coming from the White House around 9 AM this morning.

Danase · 12-19-08, 05:38

Quote:

Originally Posted by Len_A

Holy crap, is it nasty out. Are you getting the sleet mixed with the snow? I was going to go out and at least shovel a path for my dog Sisko to go take care of business - just as I'm going out, the wind gusts pick up and the sleet came down for about six or seven minutes!! Sisko took one look at it, and then looked up at me, and went back in the living room and got back in his dog bed. Like "No way I'm going in that, Lenny! I'll hold it for a little longer!" He finally went out five mintutes later, and the snow is up past his chest (he's an eighteen pound Shih Tzu, so he's already low to the ground.

Yeah, the sleet was bad as I was leaving this morning. The wind is bad too all the snow blowing off the roof sucked.

I just saw that. Looks like he's announcing loans.

Len_A · 12-19-08, 05:41

Quote:

Originally Posted by Danase

Yeah, the sleet was bad as I was leaving this morning. The wind is bad too all the snow blowing off the roof sucked.

I just saw that. Looks like he's announcing loans.

I hope it's loans.

You got much work to do today? I imagine with this weather, it's got to be slow.

Len_A · 12-19-08, 05:50

Looks like $17.4 billion in short term loans. Even Bush is acknowledging that a Chapter 11 Bankruptcy filling would not work under current circumstances, and that customers would be scared off from an automaker under C11. Looks like enough short term loans to get them enough time to do a restructuring plan outside of bankruptcy court (like was done for Chrysler in 1979), and punt it to the incoming Obama administration.

MotorCity · 12-19-08, 06:03

UPDATED: 12/19/08 9:07 a.m. ET

WASHINGTON -- President Bush today announced emergency federal loans to prevent the collapse of General Motors and Chrysler LLC.

The announcement of the unprecedented action came at 9 a.m. from the White House.

White House intervention became necessary after Congress last week rejected legislation to provide $14 billion in loans – with the promise of more aid to come next year.

Administration officials repeatedly said this week that, under normal circumstances, they would want companies to reorganize under federal bankruptcy law but that these are not normal times.

GM and Chrysler have warned they could run out of cash within weeks as U.S. auto sales drop levels not seen since the early 1980s.

Ford Motor Co. said it does not face a similar crisis but wants access to a federal line of credit in case market conditions worsen or one of its rivals fails.

The Detroit 3 CEOs told Congress in hearings Dec. 4 and 5 that they need at least $34 billion from the federal government to weather the economic downturn.

Danase · 12-19-08, 06:05

Quote:

Originally Posted by Len_A

I hope it's loans.

You got much work to do today? I imagine with this weather, it's got to be slow.

I work two jobs. My full time day job and my full time ecommerce job. LOL I'm never slow.

Yep, loans. I wonder if the stocks are going up right now?

MotorCity · 12-19-08, 06:09

Bush says say government will give automakers $17.4B in loans

WASHINGTON (AP) -- The Bush administration came to the rescue of the deeply troubled U.S. auto industry Friday, offering $17.4 billion in loans in exchange for concessions from carmakers and their workers.
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"Allowing the auto companies to collapse is not a responsible course of action," President Bush said. Bankruptcy, He said that a bankruptcy was unlikely to work for the auto industry at this time and would deal "an unacceptably painful blow to hardworking Americans" across the economy.

One official said $13.4 billion of the money would be available this month and next, $9.4 billion for General Motors Corp. and $4 billion for Chrysler LLC. Both companies have said they soon might be unable to pay their bills without federal help. Ford Motor Co. has said it does not need immediate help.

Bush said the rescue package demanded concessions similar to those outlined in a bailout plan that was approved by the House but rejected by the Senate a week ago. It would give the automakers three months to come up with restructuring plans to become viable companies.

If they fail to produce a plan by March 31, the automakers will be required to repay the loans, which they would find very difficult.

"The time to make hard decisions to become viable is now, or the only option will be bankruptcy," Bush said. "The automakers and unions must understand what is at stake and make hard decisions necessary to reform."

Bush's plan is designed to keep the auto industry running in the short term, passing the longer-range problem on to the incoming administration of President-elect Barack Obama.

Len_A · 12-19-08, 06:20

Quote:

Originally Posted by Danase

I work two jobs. My full time day job and my full time ecommerce job. LOL I'm never slow.

Yep, loans. I wonder if the stocks are going up right now?

What's you full time day job? Not detailing?

GM was up three minutes after Bush started talking, in pre-opening trading, and now is up $ .59 a share. $4.16 a share as of a minute ago. Ford is up $ .24 a share at $3.06 a share. Ford is not a part of this loan program, and issued a statement that their liquidity situation is better than GM's and Chrysler's, but anything that keeps a competitor from going under helps Ford by cushioning the finances of the suppliers.

This is a bridge to a bridge - reality is that this is punted to the Obama administration when they take over.

Danase · 12-19-08, 06:39

Quote:

Originally Posted by Len_A

What's you full time day job? Not detailing?

GM was up three minutes after Bush started talking, in pre-opening trading, and now is up $ .59 a share. $4.16 a share as of a minute ago. Ford is up $ .24 a share at $3.06 a share. Ford is not a part of this loan program, and issued a statement that their liquidity situation is better than GM's and Chrysler's, but anything that keeps a competitor from going under helps Ford by cushioning the finances of the suppliers.

This is a bridge to a bridge - reality is that this is punted to the Obama administration when they take over.

I can't say on a public forum. LOL I do a lot of CAD design work and Civil Engineering.

I just hope this helps them. The economy is a scary thing in our parts.

Len_A · 12-19-08, 06:51

Quote:

Originally Posted by Danase

I can't say on a public forum. LOL I do a lot of CAD design work and Civil Engineering.

I just hope this helps them. The economy is a scary thing in our parts.

Understood and acknowledged!!

Scary is an understatement. I hope things start turning around here in our area.