Senate negotiations for a U.S. automaker bailout plan collapsed, in a blow to General Motors Corp. and Chrysler LLC, which may run out of cash early next year.
“It’s over with,” Majority Leader Harry Reid said on the Senate floor in Washington. “I dread looking at Wall Street tomorrow. It’s not going to be a pleasant sight.”
The Senate began taking a procedural vote on a House-passed plan, though Reid said he didn’t expect it to get the required 60 votes.
“Millions of Americans, not only the autoworkers, but people who sell cars, car dealerships, people who work on cars, are going to be directly impacted,” said Reid. “It’s going to be a very, very bad Christmas for a lot of people as a result of what takes place here tonight.”
I think this has to be done. That said the systemic effects from GM & Chrysler going under is going to push the country into a depression. But this is one of those situations where there where there are no good alternatives. Our choices are basically really really horrible… or really really horrible.
I do not for a moment believe either company will survive chapter 13.
Typo in my above…
chapter 13 should read chapter 11.
Under the mercy,
[url=http://ad-orientem.blogspot.com/]John[/url]
An [url=http://www.youtube.com/watch?v=Gj4pUphDitA]Orthodox [/url] Christian
Our country has now told hundreds of thousands of workers, probably millions when you count all the auto supplier companies etc.: Drop Dead!
Interesting that just a couple months ago the same group of pious, hypocritical people welcomed and dished out $700 billion (without a plan and not a loan) to a bunch of irresponsible bankers who promptly headed to exclusive resorts to celebrate.
Republicans have now proved they are about helping white collar folks only.
Sure bail out guys making excessive salaries in one white collar industry and then dump on blue collar workers who actually have to do physical labor and produce something on the other side.
Pathetic and while some are cheering now, watch and see what your 401k does in the coming weeks if W doesn’t step in and carve out a loan for them.
So laugh today because you dumped on some autoworkers, but see if you’re still smiling next month when the collapse of other suppliers, services and other businesses come.
I agree they are hypocrits, it’s all about politics (keeping power or gaining power).
That being said, I am against all the bailouts for three distinct reasons: 1) where do they end (who is next in line), 2) inflation caused by the borrowing and printing of money will ultimately increase at too rapid a rate, 3) the federal government should not have an ownership stake in any industry (read socialism or at its worst fascism).
This failure is a result of a perfect storm of factors and all parties need to share blame, the companies, the execs, the government, the UAW, and you are correct all of them are hypocrits.
RE: “It’s going to be a very, very bad Christmas for a lot of people as a result of what takes place here tonight.â€
No, sir — it’s going to be a very, very bad Christmas as a result of the many terrible decisions made by executives and the UAW over the past scores of years. They should be ashamed of their actions.
Jim of Lapeer — I wholeheartedly agree. The Republican Party is a hypocrite.
My senator, Jim DeMint, thankfully voted against both bailouts — so he does not fit the trend.
Listening to the chairperson of the Congressional oversight committee on the $700 billion dollar bailout, I have to conclude that the banks and their overcompensated execs (the modern equivalent of Ali Baba and the 40 thieves) have taken us all to the cleaners. The money was meant to loosen the credit market – instead it’s being stockpiled so execs can claim they’re making money for the banks, and therefore deserve bonuses. Ah, the American Way. But the Republicans want to either eliminate hundreds of thousands of jobs, or feeling charitable reduce their wages by more than 30%. Mr. Bush’s Revolution has finally achieved its end. The price of apples has just gone up.
At my parish here in downtown Detroit, the vestry should consider putting together a bailout request if the auto industry does tank, and more of my parishioners have to leave to get jobs elsewhere. Michigan has the highest unemployment in the country.
We had 47 people leave the parish in 2007 to take employment out of state, mostly former auto company or auto supplier employees.
Look, folks: No one wants people to lose their jobs, but the fact is that because of bad business management, poor decisions, and sweetheart union contracts, the companies did themselves in. Some MAJOR changes will have to be made, such as eliminating unneeded divisions, duplicate vehicle production involving two or more divisions…..GMC and Chevrolet truck divisions, for example…..union retirement provisions such as full pay upon retirement, outrageous executive salaries, etc…..in order for American car companies to survive. No one likes to hear the truth, but there it is!
Who pays for health care for workers or retirees in Japan? What effect does that have on corporate accounts when it’s decision time to build a production line or institute capital investments? Perhaps we’re arguing apples and oranges (no pun on Depression-era entrepraneurs) when we discuss poor decisions – the questions before the execs maybe really weren’t the same.
I get it now, when you want to know the truth, you have to ask Cennydd. I think not.
Congress has sowed the wind and will now reap the whirlwind if W doesn’t step in soon.
The domino effect of a failed GM will rattle all over this country and hurt those who only thought they were hurting Detroit. Way to go GOP!
This is a vote many of us won’t soon forget.
RE: “This is a vote many of us won’t soon forget.”
You betcha — conservatives will mark down which Republican senators and house representatives actually had the courage of their stated conservative beliefs, and will be voting for them for a long time to come.
Of course, liberals should also mark down which ones voted in accordance with their stated beliefs and for the bailouts.
Don’t depend on ME for the truth; I only speak of the things that I see! Ask the UAW about the hourly employees who sit around the breakrooms doing nothing and getting paid for it. Or how about receiving full pay in retirement? It sure would be nice if I got full pay after retiring from the Air Force! NOBODY does!
The auto industry, as we all know by now, is going to have to be re-structured, and it’s going to be painful for a lot of people. But if the American companies are going to survive…..and I think they will…..it’s going to have to be done. Are people scared? SURE they’re scared, and who can blame them? But what choice is there?
There was a time when there were more autoworkers than needed. That has not been true for many years. The crap being dished out about the auto companies during this recent fight is maddening for those of us here in Michigan who know how things are.
The jobs bank is already on the way out. There is already a two-tiered wage system in place so that incoming workers will make less and get fewer benefits. This was all negotiated in the last contract.
But those outside Michigan are still dishing out the same old dated stuff. We’re used to it here.
At the same time, too many people in this country continue to buy foreign cars from former bitter enemies (remember World War II folks).
It was the American autoworker who drove the idea of higher wages from the little guy and better health and retirement benefits.
So go ahead and dismantle the auto workers and then you will have business execs who make $20 million a year for sitting on their duff ruling over folks who actually do the work making $16 an hour.
Doesn’t matter to me I’m retired from a non-auto job. I start collecting my Social Security next year and all these unemployed autoworkers, who will no longer be paying Social Security taxes or any other taxes.
So when this trickles down (the real trickle down theory) and everyone, but the top echelon in this country, starts living on less and less you can look back and remember who voted for that.
So what would Jesus do? Would Jesus continue to pay auto execs, bank execs huge salaries for ruining their businesses and, on the other hand, reduce the amounts made by those on the bottom.
Somewhere in the Bible it talks about “the least of these….”
And also something about “a camel through the eye of a needle.”
If we are going to be Christians, we should also be Christian in our outlook toward business and labor.