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The best thing we can do is to give people who don't have a clue how to manage a company....10,000 million dollars so they can combine with another company...that has no idea how to manage a company.
Oh god. Why can't I get 10 billion for being stupid?
70Ford, how about you and I open up a "bank" in the form of a cardboard box on the side of the street that says "Bank" w/ a backwards 'k' and 'B', ask the government for an initial 10 billion dollar "capital start," loan that money out to people unfit to keep a piggy bank unbroken less pay off a large mortgage, and ask for a "capital injection," not a bailout.
I'm sure if you put down you committed several felonies, including grand larceny and embezzlement, as well as say you have 0 income that'll only sweeten the deal with them! They love to give to people who have been "disadvantaged."
Location: Georgia, on the Florida line, right above Tallahassee
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Feds may help automakers, aid in GM-Chrysler deal - BusinessWeek (http://www.businessweek.com/ap/financialnews/D9434G0G0.htm - broken link)
The government has an interest in making sure automakers survive because of huge pension plans that it would have to insure, and the huge number of jobs that could go away if one of the companies goes bankrupt.
Chrysler employs about 49,000 in the U.S. and has roughly 125,000 pensioners. GM has 177,000 U.S. workers and around 500,000 people receiving pensions. For each auto manufacturing job, there are 7.5 jobs with parts makers and other companies, according to the Center for Automotive Research in Ann Arbor. Chrysler alone accounts for 318,500 to 392,000 jobs, while GM and Ford account for 2 million each, the center said.
Feds may help automakers, aid in GM-Chrysler deal - BusinessWeek (http://www.businessweek.com/ap/financialnews/D9434G0G0.htm - broken link)
The government has an interest in making sure automakers survive because of huge pension plans that it would have to insure, and the huge number of jobs that could go away if one of the companies goes bankrupt.
Chrysler employs about 49,000 in the U.S. and has roughly 125,000 pensioners. GM has 177,000 U.S. workers and around 500,000 people receiving pensions. For each auto manufacturing job, there are 7.5 jobs with parts makers and other companies, according to the Center for Automotive Research in Ann Arbor. Chrysler alone accounts for 318,500 to 392,000 jobs, while GM and Ford account for 2 million each, the center said.
And if GM alone went BK, that would probably add about $400 Billion more to the default mortgage issues that currently exists...Add Ford to that and you have a second $800 Billion bailout on the way on top of what additional bailout is going to be needed.
THEN add about $40 Billion A YEAR for pensions that need taken care of and another $40 Billion A YEAR in health insurance for both F & GM retired and you have what will be known as the complete and utter collapse of the US economy.
Of course they are going to aid in any type of recover of the US auto industry. ALL our lives depend on it. Gov is just not going to shoot their load as quickly like with the banks...
The government should simply buy the outstanding stock and throw out the current managment. Then get some old hardass Navy Chief to run the place. It would probably make some profit because of the money saved on executive salary.
In the end they need to demand complete overhaul of the contracts and those pension to make the bailout worth anyhting at all. It has been a industry way out of line as to tehir liabilties to income for a long time.
Looks like a shell game to me. Cerberus owns GMAC, and that little unregulated(yes, you read that right there in the article) GMAC bank, see? They gots the money see? And they're telling GM play ball, see? I don't think it's GM eyeing Chrysler. I think it's Cerberus eyeing GM...and a bailout.
Time for some amazingly bad predictions!
Chrysler WILL merge with GM and subsequent lay offs will be massive. You just don't need all those people. What a great reason to downsize in a bad economy. The press isn't as bad. "It's part of the merger." Nah, it's smart business...but it was gonna happen anyways.
The U.S. government will assume GM's & Chrysler's pension plans, and subsequently screw 605,000 current pensioners. I imagine they'll get 50 cents on the dollar.
GM says it provides health care and pensions to about 480,000 hourly and salaried retirees. Chrysler is obligated to support at least 125,000 hourly retirees and their spouses, plus tens of thousands more from the white-collar ranks. Between 2009 and 2017, GM has committed to pay out $64.14 billion in pension benefits to U.S. retirees. Chrysler has estimated it has $14 billion in pension obligations between 2009 and 2017, and $10 billion in health care.
I think once Cerberus has the government/GM "bail out" Chrysler, they are NOT just going to say "Hey, GM....you can keep that 11.7 billion dollars Chrysler has." I mean, you're a greedy coorporation....what would you do? I'd screw everybody for a dime is what I'd do. I'd take the 667 million (the PBS article ) and then offload my white elephant onto US taxpayers. Oh hellz yeah.
The Haves and the Have Mores - the real Republican constituency.
You work for 40 years for a decent pension and the financiers steal it from you by using a financial emergency they created. Then the same Haves expect to be bailed out by the rest of the population. Yeah, like that is fair.
Economic class warfare is alive and well and most of us are losing.
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