Posted: Thu Dec 18, 2008 9:47 pm
The government could take back the money should the automakers not comply with federal restrictions as a condition of receiving the funds...
Anyone wanna bet on this?
Anyone wanna bet on this?
RIP Gordon
https://dtman.com/forum3/
The government could take back the money should the automakers not comply with federal restrictions as a condition of receiving the funds...
I think it is because bankruptcy means that the Big 3 can throw out the union contracts and having a non-union job is the same as being unemployed. Probably worse. That is my guess after hearing some of the workers talk.Vince wrote:How many airlines have filed for bankruptcy and realigned their debt and are still around? I don't get this doom and gloom if they file for bankruptcy.
And how many airlines have been bailed out by the government? Especially since 911?Vince wrote:How many airlines have filed for bankruptcy and realigned their debt and are still around? I don't get this doom and gloom if they file for bankruptcy.
I wish we'd had a conservative in office the last 8 years...Mommy Dearest wrote:And how many airlines have been bailed out by the government? Especially since 911?Vince wrote:How many airlines have filed for bankruptcy and realigned their debt and are still around? I don't get this doom and gloom if they file for bankruptcy.
President Bush will make a 9 a.m. announcement about a possible bailout for troubled automakers. More soon.
Yes that would have been nice.Vince wrote:I wish we'd had a conservative in office the last 8 years...Mommy Dearest wrote:And how many airlines have been bailed out by the government? Especially since 911?Vince wrote:How many airlines have filed for bankruptcy and realigned their debt and are still around? I don't get this doom and gloom if they file for bankruptcy.
The loans come with strings attached, including limits on executive compensation and a ban on the use of corporate jets. The automakers will need to restructure, getting tough concessions from creditors, suppliers and the labor union.
The deal also includes as non-binding "target" key provisions, including making work rules and wages competitive with workers at foreign car companies in the U.S.
Treasury Secretary Henry Paulson will administer the plan until Jan. 20, at which point there will be another presidential designee to oversee the loans under the new administration.
If the companies cannot prove they are financially viable by March 31, the loans will be recalled and the money returned to the Treasury.
The White House is also calling for no dividends for stockholders until the money is paid back, and stipulating that the government can block transactions over $100 million.
Other non-binding targets of the plan include debt reductions by two-thirds as well as the elimination of jobs banks, a system that allows workers to get paid a large percentage of their wages even when they're not called in to work.
GM has talked about ending the program, but a spokesman said employees have built their lives around it. It allows many to live far from their offices and commute at little expense.
The spokesman said killing the program now would be "extremely" disruptive.
This is why we need firing squads that aim for the kneecaps.TheCatt wrote:This is why we need bankruptcy.
*cough* *cough*TheCatt wrote:Overall, I think the government, on behalf of taxpayers, should play it's strong hand. It KNOWS that there is no other option for these companies for funding other than the government. They should demand significant cuts from everyone involved, force a bankruptcy to allow for easier reorganization, but publicly state that they will back/endorse warranties/service from the companies.