#1 Pelosi: Bankruptcy by Automakers 'Not an Option'12-03-2008, 08:10 AM
Dec. 2 (Bloomberg) -- U.S. House Speaker Nancy Pelosi said she believes either Congress or the Bush administration will step in to aid domestic automakers because bankruptcy is “not an option.”
“I believe that an intervention will happen,” Pelosi said at a briefing in Washington. “Everybody is disadvantaged by bankruptcy, including our economy, so that’s not an option.”
Pelosi said Congress will either approve new loans for the auto industry or the Bush administration will provide funding through the $700 billion financial-markets rescue plan approved by Congress last month.
Senate Majority Leader Harry Reid told reporters today that he will have a legislative vehicle on the Senate floor Dec. 8 that can be used as a carmaker bailout measure if an agreement is reached. “We’re looking to make sure we do everything we can to take care of the auto industry, if in fact it’s viable,” Reid said.
The domestic automakers were submitting plans to Congress today to explain how they can achieve financial stability. Democratic lawmakers demanded the plans before allowing a vote on aiding the automakers.
Ford Motor Co. asked Congress for a credit line of as much as $9 billion, saying it expects to break even or be profitable before taxes in 2011. General Motors Corp. asked for up to $18 billion worth of assistance. Chrysler LLC this afternoon submitted a request for a $7 billion bridge loan.
$1 Annual Salary
Ford’s proposal said it hopes to avoid using the credit and doesn’t anticipate a 2009 “liquidity crisis,” barring a competitor’s bankruptcy or more severe economic slump. Ford plans to sell five jets and would pay Chief Executive Officer Alan Mulally a $1 annual salary if the loan is used.
Lawmakers are divided on whether to aid the automakers and whether the funds should come from the $700 billion bank-rescue fund or Energy Department loans approved in September.
Reid, a Nevada Democrat, said he will decide after Dec. 4 and 5 hearings on the issue whether the Senate will vote next week on additional aid to the automakers.
“We hope that we can work something out,” Reid told reporters. “We don’t want to throw them a lifeline if the lifeline doesn’t get them to the shore.”
Ford, GM and Chrysler must convince a divided Congress their plans to shrink are severe enough to ensure repayment of $25 billion in proposed loans.
To contact the reporters on this story: Laura Litvan in Washington at email@example.com; Lorraine Woellert in Washington at firstname.lastname@example.orgGun Control: The theory that a woman found dead in an alley, raped and strangled with her panty hose, is somehow morally superior to a woman explaining to police how her attacker got that fatal bullet wound - Unknown
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12-03-2008, 12:32 PM
I heard the blip this morning about Pelosi saying bankruptcy was not an option for the automakers and questioned why on earth not? Checked our buddy Boortz this morning for the answer...
There is already a provision under our laws to take care of this mess. It's called Bankruptcy. Chapter 11 bankruptcy, to be more exact. Reorganization. The magic of bankruptcy is that all outstanding contracts that are making it difficult for these automakers to compete and survive would or could be cancelled --- and that includes the contracts with the United Auto Workers. Nancy Pelosi is saying that bankruptcy is not an option. Why not? For the very reason I just set forth. Bankruptcy would not work well for the unions.
Unions are getting ready to ream the local economy here at home again as well. Boeing just got off a long strike, just in time for the trickledown to cause layoffs for the various folks who supply Boeing parts. Now I hear on the news that they are still negotiating the contract and watching the talks in Seattle to see if they can push for more than the 5% a year raise, increased pensions, and improved insurance that is on the table there. I know unions had a purpose at one time, but they have become a vicious enemy that needs to be torn down. Maybe that will come out of this auto industry debaucle, and at least people will see the problem.Romans 6:18 You have been set free from sin and have become slaves to righteousness.
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12-03-2008, 02:22 PM
I wish that the House dems would vote in a different speaker. I am not a fan of Pelosi, especially after she and her cronies stripped Dingell of his chairmanship. You don't treat the longest serving member of your party in such a manner.
I don't live in Dingell's district, but I like him.
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