Category Archives: Auto Industry

Corzine Talks Recession with Rachel Maddow

On a segment on the Rachel Maddow show yesterday, NJ Gov. Jon Corzine made an appearance to discuss the recession and what he was going to talk to President elect Obama in Philadelphia today. 

Corzine mentioned that Obama is a great listener and he hopes that Obama will support a huge stimulus package for the States.

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Filed under Auto Industry, bailout, Barack Obama, Jon Corzine, President-Elect, Recession, The Rachel Maddow Show

>Coming up: A huge pension bailout?

>The housing bubble lead to the mortgage crisis, then the financial crisis and the auto industry crisis, commercial real estate is on the verge of a crisis with so many businesses filing for bankruptcy and closing their doors, can a pension bailout be far behind? Michael Brush seems to think so.

Brush has posted an article on MSN Money explaining why he thinks a pension bailout is not far behind:

“Americans with 401(k) plans in stocks have been feeling queasy for months as they’ve watched their savings vanish at alarming rates.

But workers covered by traditional pension plans — the ones 100% funded and managed by companies for employees — have so far avoided that sinking feeling.

Unlike the 401(k) crowd, they don’t get monthly statements bearing the grim news of the lousy performance of the investments in their pension plans.

But with stocks and bonds crushed, many of these old-school defined-benefit plans now look downright wobbly. If the economic weakness continues long enough, many could end up in the hands of the independent government agency responsible for taking over failing plans….”

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Filed under Auto Industry, bailout, bankruptcy, commercial real estate, Financial crisis, Michael Brush, mortgage crisis, MSN Money, pensions

Coming up: A huge pension bailout?

The housing bubble lead to the mortgage crisis, then the financial crisis and the auto industry crisis, commercial real estate is on the verge of a crisis with so many businesses filing for bankruptcy and closing their doors, can a pension bailout be far behind? Michael Brush seems to think so.

Brush has posted an article on MSN Money explaining why he thinks a pension bailout is not far behind:

“Americans with 401(k) plans in stocks have been feeling queasy for months as they’ve watched their savings vanish at alarming rates.

But workers covered by traditional pension plans — the ones 100% funded and managed by companies for employees — have so far avoided that sinking feeling.

Unlike the 401(k) crowd, they don’t get monthly statements bearing the grim news of the lousy performance of the investments in their pension plans.

But with stocks and bonds crushed, many of these old-school defined-benefit plans now look downright wobbly. If the economic weakness continues long enough, many could end up in the hands of the independent government agency responsible for taking over failing plans….”

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Filed under Auto Industry, bailout, bankruptcy, commercial real estate, Financial crisis, Michael Brush, mortgage crisis, MSN Money, pensions

>Bailouts for Bankers, Not a Cent for Autoworkers

>John Nichols, The Nation

This is the part of our nation’s surreal economic crisis that seems particularly surreal:
The U.S. auto industry, which employs 3 million Americans in auto plants, parts and supplier networks and dealerships nationwide is broadly understood as being essential to maintaining America as an industrial force. It’s financial collapse, which even critics of moves to bailout the industry suggest is imminent, would devastate workers, retirees and communities in every state of the nation. Despite the grumbling from anti-union zealots, the auto giants have radically retooled in a manner that makes the cost of producing a vehicle at a unionized plant of General Motors, Ford or Chrysler roughly equivalent to the cost of running a car off the line at a non-union plant. And to top it all off: Auto plants actually produce something that most Americans consider to be useful.
Yet, proposals to provide what now seems to be a very small bailout — $25 billion — are currently stalled.
At the same time, the whole of the federal government is scrambling to buy as much as $50 billion in “toxic assets” — bad loans and other products of irresponsible financial practices that are of dubious value — from Citigroup, a global banking concern that makes money by charging working families exorbitant interest rates for credit. According to the Wall Street Journal, “[The move to protect the banking concern] would mean taxpayers could be on the hook if Citicorp’s massive portfolios of mortgage, credit cards, commercial real-estate and big corporate loans continue to sour.”
Perhaps, in some wild calculation of American interest, Citicorp is worthy of a bailout.
But what mad calculus would make Citigroup more worthy than the auto industry?
And why the urgency with regard to Citigroup and the casual disengagement with regard to the industrial giants that, for all their flaws and perils, remain what Barack Obama correctly described as “the backbone of American manufacturing”?
Something is fundamentally wrong with a federal government that offers bankers a bailout and autoworkers as cold shoulder.

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Filed under Americans, Auto Industry, bailout, Barack Obama, Citicorp, Financial crisis, John Nichols, The Nation, Wall Street Journal

Bailouts for Bankers, Not a Cent for Autoworkers

John Nichols, The Nation

This is the part of our nation’s surreal economic crisis that seems particularly surreal:
The U.S. auto industry, which employs 3 million Americans in auto plants, parts and supplier networks and dealerships nationwide is broadly understood as being essential to maintaining America as an industrial force. It’s financial collapse, which even critics of moves to bailout the industry suggest is imminent, would devastate workers, retirees and communities in every state of the nation. Despite the grumbling from anti-union zealots, the auto giants have radically retooled in a manner that makes the cost of producing a vehicle at a unionized plant of General Motors, Ford or Chrysler roughly equivalent to the cost of running a car off the line at a non-union plant. And to top it all off: Auto plants actually produce something that most Americans consider to be useful.
Yet, proposals to provide what now seems to be a very small bailout — $25 billion — are currently stalled.
At the same time, the whole of the federal government is scrambling to buy as much as $50 billion in “toxic assets” — bad loans and other products of irresponsible financial practices that are of dubious value — from Citigroup, a global banking concern that makes money by charging working families exorbitant interest rates for credit. According to the Wall Street Journal, “[The move to protect the banking concern] would mean taxpayers could be on the hook if Citicorp’s massive portfolios of mortgage, credit cards, commercial real-estate and big corporate loans continue to sour.”
Perhaps, in some wild calculation of American interest, Citicorp is worthy of a bailout.
But what mad calculus would make Citigroup more worthy than the auto industry?
And why the urgency with regard to Citigroup and the casual disengagement with regard to the industrial giants that, for all their flaws and perils, remain what Barack Obama correctly described as “the backbone of American manufacturing”?
Something is fundamentally wrong with a federal government that offers bankers a bailout and autoworkers as cold shoulder.

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Filed under Americans, Auto Industry, bailout, Barack Obama, Citicorp, Financial crisis, John Nichols, The Nation, Wall Street Journal

>Dodd Says Auto Bailout Lacks Votes in Senate

>The NY Times has just posted a column by David Herszenhorn stating how Connecticut Senator Chris Dodd, who is Chairman of the Senate banking committee, has just announce that Auto industry bailout lacks votes in the Senate at this time.

“The chairman of the Senate banking committee said on Thursday that he did not believe there would be enough Republican support for efforts to aid floundering automobile manufacturers, raising doubts about whether Congressional leaders will call the House into a lame-duck session next week.

“Right now, I don’t think there are the votes,” the chairman, Senator Christopher J. Dodd of Connecticut, said, adding that he personally was in favor of using money from the $700 billion financial rescue program to help General Motors, Ford and Chrysler. But Mr. Dodd said he did not believe such a bill would get through the Senate.

“I don’t know of a single Republican who’s willing to support,” Mr. Dodd said. “So I want to be careful about bringing up a proposition that might fail in light of the fact the authority exists, and under an Obama administration there seems to be a greater willingness to deal with the issue. So there are some political considerations to be made.”

Passing any legislation to aid the auto companies would require 60 votes in the Senate. Democrats have 49 seats, Republicans have 49 seats and there are 2 independents who caucus with the Democrats…”


Click HERE to finish reading David Herszenhorn’s column in the NY Times

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Filed under Auto Industry, bailout, Chris Dodd, David Herszenhorn, NY Times, Senate banking committee

Dodd Says Auto Bailout Lacks Votes in Senate

The NY Times has just posted a column by David Herszenhorn stating how Connecticut Senator Chris Dodd, who is Chairman of the Senate banking committee, has just announce that Auto industry bailout lacks votes in the Senate at this time.

“The chairman of the Senate banking committee said on Thursday that he did not believe there would be enough Republican support for efforts to aid floundering automobile manufacturers, raising doubts about whether Congressional leaders will call the House into a lame-duck session next week.

“Right now, I don’t think there are the votes,” the chairman, Senator Christopher J. Dodd of Connecticut, said, adding that he personally was in favor of using money from the $700 billion financial rescue program to help General Motors, Ford and Chrysler. But Mr. Dodd said he did not believe such a bill would get through the Senate.

“I don’t know of a single Republican who’s willing to support,” Mr. Dodd said. “So I want to be careful about bringing up a proposition that might fail in light of the fact the authority exists, and under an Obama administration there seems to be a greater willingness to deal with the issue. So there are some political considerations to be made.”

Passing any legislation to aid the auto companies would require 60 votes in the Senate. Democrats have 49 seats, Republicans have 49 seats and there are 2 independents who caucus with the Democrats…”


Click HERE to finish reading David Herszenhorn’s column in the NY Times

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Filed under Auto Industry, bailout, Chris Dodd, David Herszenhorn, NY Times, Senate banking committee