Daily Bailout: Another day, another plan
- Treasury Secretary Henry Paulson is said to be considering a plan to restructure the current bailout plan to return the Treasury to the original plan of buying up mortgages, this time with the intent of lowering their interest rates to 4.5% so homeowners won’t go into foreclosure. There is no guarentee this will get banks lending or that it will actually have any result. So… another day, another plan.
- Bank of America could lay off as many as 10,000 employees. So if you think an automobile bailout will secure jobs, look to the financial bailout for guidance on that.
- A lawsuit by shareholders alleges CIti executives sold their shares at inflated prices while concealing how bad the company was doing. Those named include Clinton administration goldenboy and former Treasury Secretary Robert Rubin.
- Now their are calls to make a stimulus package $1 Trillion Dollars. Take that Dr. Evil, we can hold the country hostage for a higher amount than you can!
Auto’s
- Yesterday Representatives of the United Autoworkers said their union is willing to consider concessions to help their employers receive billions in bailout money. The problem? While they talk now of concessions their is no guarantee the vote will actually go that way and no major concessions beyond giving up the heavily criticized “jobs bank” program (which gives laid off employee’s 95% of their pay) have been offered. Skepticism abounds.
- GM & Chrysler say they may be willing to accept bankruptcy for a bailout but are still dragging their feet over what they see will become a loss of confidence in the marketplace.
- Daniel Gross writes about a Detroit Delusion
- Even with a bailout things look bleak
Other bad business news
- Adobe has cut 600 Jobs
- The downturn has apparently hit Dubai
December 5th, 2008 at 9:40 pm
Well, a bailout is coming for the Auto Industry, and I am sure there will be more for other industries too. I believe they should just be run into the ground, and the government should not intervene, as I believe they would build themselves back up. They have been mismanaged, on the auto and financial side.
Not only that, American auto workers for the Big 3 get paid like around $40 an hour, those who work in Hyundai, Toyota, etc. are being payed about half as less, and these companies make better fuel efficient automobiles, that look good, and sell cheaper than those of the Big 3. Something sounds wrong a bit right? Seems like the mismanagement is hurting the American companies, but the same problems aren't hurting the foreign auto makers that bad in the United States.