Canadian Prime Minister Stephen Harper drafted former Molsons boss Jim Arnett less than three weeks ago to advise on auto industry policy. Now that Canada has commited $4b Canadian ($3.25b American) to Chrysler and GM, Arnett has resigned his position. The Star reports that “the Conservative government never really saw eye-to-eye with Arnett on what needed to be done,” but that Arnett will continue to advise the Ontario provincial government. Arnett, who advised the government on the 2004-2006 steel industry restructuring, was not available to comment on why he quit. Sources say Arnett “couldn’t reach the appropriate terms of reference” with the federal government. If we had to guess why Arnett might have left, we’d say it probably has something to do with Harper’s seemingly boundless enthusiasm for handing taxpayer money to Detroit. “I will not fool you. There is obviously money at risk here and there may be, well, more money as we go forward,” Harper told reporters when the Canadian bailout plan was announced.
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I wrote Harper’s Industry Minister about this bailout, for the second time. Can’t wait to hear back. Stephen Harper, just another goddam panderer.
Molsens = Molsons
I wonder what GM and Chrysler are providing for collateral for the dough? Obviously anything of value has already been mortgaged to the max..
Stephen Who?
Harper had no choice. He leads a minority government that nearly got booted out for providing an “economic update” that the opposition parties didn’t like. If he didn’t do it, the government would change hands to a coalition of parties that would try to spend themselves into prosperity.
This bailout comes with a bouquet of questions that nobody seems to be asking.
1. Is this going to freeze the employment level in Canada?
2. If so, at what level of employment will get the money to the companies?
3. What is the net revenues and profits in Canada?
4. Are the Mexicans offering loans or cash?
5. Are the Mexicans being asked for bailout money? and if not why not?
The other parties up here are even worse. They were pushing to be the first, before the US, to give money. Especially the party that is basically Union based. How would that have looked if the US didn’t give money and they promptly went bankrupt?
Our politicians simply threw in the towel. Proof? NO 50% guarantee from Cerberus. What are the chances of seeing any money back at all.
<@dougjp :
I think the chances of any repayment are slim to none, because of all the secrecy involved.To me any time there is a lack of info it’s because there’s nothing good to say.
Here’s my solution since nobody asked (yet are happy to spend my tax dollars).
Canadian gov’t backstops Magna to buy Chrysler’s Canadian operations – minivans/300/Challenger/Charger. They then supply the vehicles as OEM to Chrysler or directly through the dealers.
That seems a lot better to me than throwing the money straight down the toilet.
And the award goes to crackers, you nailed it dude.Stephen Harper is a ultra conservative.Who knows what Harper would do with a majority.A majority Prime Minister answers only to his own party.As soon as President Bush gave the bailout a green light,Harper had to fish or cut bait.I’ve said it before,the auto industry is the life blood of Ontario.Premier McGuinty has been supportive from the get go.Stephen Harper had to be pushed,to get onboard.
Harper had no choice politically and Bushoes/Obama had/have no choice either, because of the macroeconomics of the situation.
To paraphrase Bushoes, letting the car companies go now risks starting the second Great Depression of the 20th/21st century.
Is there a politician who is now alive anywhere in the world that would let that happen or is even capable of taking that chance?
Of course, Bushoes could have done something anytime since January, 2001 to prevent this…guess he was just too busy or just plumb forgot…you know, he made a list then lost it??…guess a Yale MBA isn’t worth what it used to be, except being good at allowing the American equivalent of the Afghan warlords to take over the economy for 8 years…Curly (nyuk, nyuk, nyuk) would have made a better President. Bushoes is lucky my size 13s weren’t thrown at him…a little harder to dodge…Congratulations American voters for a job well done!!