“Hoover” as in the English expression for vacuum or suck-up– not the U.S. President at the helm when American slid into [what became known as] The Great Depression. Anyway, that brings Uncle Sugar’s contribution to the Detroit cause to $66.2b: $25b for retooling loans, $17.4b for direct-to-manufacturer bailout bucks and $23.8b for GMAC aid. OK, I’m exaggerating. Bloomberg reports that GMAC is “only” in line for $6.3b in cash money. The rest– $17.5b– will arrive in the form of federally guaranteed debt, under the Temporary Liquidity Guarantee Program. If you remove that choice morsel from the recipe for, what was it again? Oh right: turnaround. Recovery. That sort of thing. Then it’s a mere $48.7b. So far. GMAC still faces a midnight deadline to swap debt for equity to qualify as a bank, but it shouldn’t be much of a problem, given that the Fed has pre-approved the bank transformation process under its “emegency powers.” As far as GMAC’s future management is concerned, Bloomberg scribe David Mildenberg doesn’t “get it.” If Red Ink Rick Wagoner can hold onto the reins of power at GM, what’s the bet GMAC Chairman Ezra Merkin, “whose funds invested in Bernard Madoff’s alleged $50 billion Ponzi scheme,” will keep on keeping on?
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And for the next few Headline selection / Article Metaphors may I suggest a nicely-aged 1978 Cheech and Chong to the management?
I think the Fed Bailout Bucks eventually going Up In Smoke -is an inevitable case.
Or: DAMN! First Congress, then Bush, then The Fed; -cripes almighty, those guys are Still Smokin’ something, because they’re bailing out instead of flushing these turds.
I realize we’re in a recession, and Things Are Tough All Over, but C11-ing these companies in the trough of the cycle sets them up to grab onto the Positive Economic Tsunami that will surely follow it (hell, even Tsuzuki could make a comeback in 14 months).
I mean, you could argue that giving the Three Stooges of Detroit the ‘out’ of flushing in a recession than the public scorn that should truly be heaped upon them -in dumpsterloads, but the Nice Dreams have got to end for Ostriching upper management Robber-Barons like Waggoner and Nardelli (+ $75/hr UAW guys) at some point in time.
I guess with their shaky hold on reality/sanity, either Gettelfinger, Waggoner or at least the Head of GM’s Board of Bystanders should get the [dis]honor of the “Yellowbeard Award” for being such spineless cowards.
And of course, you all have got to keep hammering into the heads of any American who will listen that if the 2.8+UAW keep on doing the same any longer, the Next Movie they make will be the same one they’ve been making for the last 30+ years.
—
(Ie: The same movie posters with awesomely bad photoshopped in portraits (ala Gizmodo) of the guilty parties [ex: Bernanke+Nardelli]. -With a sub-head here and there; [ex: ‘the bad trip that is VEBA’, etc.] )
just an idea,
-W
I guess this is pocket change to what they’ve handed out to the “banks” elsewhere, don’t fret plenty more to come. Why worry about the dollars going here when theres still no justification and regulation with JPmorgan Citi etc etc and their giveaway money……Chill man chill. Merry Chrimbo old beans and a happy interesting new year.
Nothing to see here…. move along.
Just keep on keepin’ on and perpetuating the foolishness.