Friday, November 14, 2008

Continuing Saga of US Automaker Bailout

The pace of news reports from Washington concerning the bailout of the Big Three is dizzying. I have been watching these events unfold throughout the week in amazement. To say that the lobbying efforts of GM, Ford and Chrysler for immediate funds is relentless would be an understatement. Indeed, GM's "bankrupt-free" life is at stake here. What will happen over the course of the next few days? This is what keeps me tuned in. How will this crisis be averted and what heroic efforts will be required?

From Reuters:

"The U.S. Senate plans to take up a $25 billion bailout bill for distressed domestic automakers on Monday, but it remains unclear if proponents can muster the support necessary to pass the legislation.

Democratic Majority Leader Harry Reid of Nevada said on Friday that he "plans to press forward" with emergency aid to automakers and a plan to extend unemployment insurance, even though Republican backing is not assured.

Reid plans to begin debate on Monday and hopes the Senate will conduct procedural votes early in the week.

It will be difficult for Democrats to push through an auto bailout if minority Republicans object and throw up procedural roadblocks."

Will this be a partisan debacle resulting in GM's collapse? On the surface of it, one would think that this lame duck session is not going to agree on any emergency aid legislation. Also, is 25 billion really enough money? I thought GM was currently burning through 2.5 billion per month?

I think that the White House is going to put some serious pressure on Congress to try and reach some agreement before next week ends. Stay tuned, we never know what to expect next in these days of uncertainty.

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