Quote:
Originally Posted by HappyTexan
Sorta semi off topic but...
Why is Congress making the Big 3 jump through so many hoops and decrying their luxuries when they handed billions upon billions to the likes of AIG, JPMorgan, Citi and didn't blink an eye or ask a question or didn't demand turnaround plans ? And when AIG splurged they only got a light tap on the hand and AIG went and did it again. And the banks..well they are still going to give out large bonuses.
So why are the Big Three being treated so differently ?
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It's quite a dog and pony show that's for sure and for good reason. Congress doesn't want to be criticized as they were for the mistake they made with the financial institutions
blank check. I commend then for that ! Tester almost got a riot started fingering the financials
.
It is clear that congress realizes that the alternative to giving GM and DAI a loan is
"catastrophic" and the fallout to the economy would be
"out of this universe" as it was put multiple times by many. I guess it's safe to say GM and DAI will definitely be getting a loan. It's a matter of what strings will be attached to it.
One string, I think the UAW is going to come out of this a
powerless entity for the most part ! It was quite clear that there will be stipulations in place that UAW will have to come in line with transplant labor costs almost immediately or no money. About time !
F is going to clean up from this whole deal. The fact that they are pretty well set on the manufacturing side of things, it was pointed out by Corker that F is there to take advantage of what ever advantages get worked out for both GM and DAI. Most of all a low interest line of credit as also pointed out by Corker !
Mulally sort of slipped up a little when asked about any borrowed funds being utilized within the US. He stated that he has all intentions of keeping R&D in the US. From that tidbit of info and their business plan, I think F plans to utilize any line of credit obtained on R&D to further the gap and pull away from the rest of the world automakers technically. The future looks very bright for F. At least one of the three stooges has it right
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