[cualcrees]

"Both sides have been talking for months, but the pace recently has increased. A person familiar with the negotiations told The Associated Press Friday that officials were trying to work out a deal by the end of the month."

Link

[Zardoz]

Remember DaimlerChrysler?

Daimler (Mercedes-Benz) took a huge loss when it dumped Chrysler last year. The Germans felt they needed to rid themselves of it at any cost. What makes GM thinks Chrysler is suddenly worth something now?

[kevinr]

I believe the general thought is that Chrysler has 11 Billion in cash. GM is burning 1 billion/month. Not sure how much cash GM has left.

[Duende]

kevinr wrote:

I believe the general thought is that Chrysler has 11 Billion in cash. GM is burning 1 billion/month. Not sure how much cash GM has left.

Well, if GM and Chrysler ended up together then GM would have, let's see, carry the 1, round to the nearest dollar... a grand total of 11 billion in cash, aka an 11 month life expectancy.

[idiom]

Bail us out or lose 70,000+ jobs?

[emersonbiggins]

Let's see:

Government owns:

bad mortgages - check
bad banks - check
bad car loans - check?

How long until we go ahead and formally adopt the hammer and cicle for our national symbol?

(emphasis mine)

Treasury working on aid for GM, Chrysler merger

WASHINGTON (Reuters) – The U.S. government is considering direct financial assistance to facilitate a possible merger between General Motors Corp (GM.N) and Chrysler LLC, a private sector source familiar with Treasury discussions told Reuters on Monday.

The Treasury Department is weighing aid of at least $5 billion, which could include capital injections and government purchases of bad auto loans, according to the source, a financial policy executive who spoke anonymously because the discussions are private.

Emergency financing, at least initially, most likely would be focused on GM and Chrysler and not Ford Motor Co (F.N), which is struggling but still better off financially than its U.S. rivals, the source said.

A Treasury decision could come this week, the source said.

Separately, the Wall Street Journal reported the Energy Department is working to release $5 billion in loans to GM to help it finance the merger. The money, according to the report citing a person familiar with the matter, would come from $25 billion in financing approved by Congress last month to help domestic manufacturers make more fuel efficient cars.

An Energy Department spokeswoman said it would be "premature to estimate" a timetable for approving loans. Detroit and its allies in Congress have been pressuring the Bush administration to expedite the money, which regulators have said may not be available for six to 18 months.

White House spokeswoman Dana Perino said officials the Treasury, Energy, and Commerce departments have been in contact with automakers about help -- emphasizing the loan program for fuel efficient cars and the potential for Treasury to buy up bad car loans to spur new lending and jump-start

Domestic manufacturers are burning through cash and their performance outlook has worsened. On Monday, Moody's Investors Service downgraded GM's credit rating on continuing liquidity concerns.

GM shares fell 8.4 percent on the New York Stock Exchange.

Yahoo

[frankthetank]

This is a f$%*ing circus. I really should've maxed out those credit cards over the years, bought new cars with 0% down, refi'd the house about 9 times...

They should sell tickets to this show.

[americandream]

Bailing out the failing businesses of the rich with the tax of the working man has nothing to remotely do with egalitarian labour socialism. In fact, it is the antithesis of labour socialism and is the early onset of full blown militant fascism.

Clearly if these measures fail, you can not only expect the full and complete sequestration of your taxes, but such an outcome under the barrel of a gun. And there will be nothing you or any half witted miitia will be able to do unless you are prepared to dispense with Rambo like individual and useless responses and organise by arming yourself with knowledge. Knowledge is the greatest weapon and one the elite fear above all else.

[gnm]

@#%$@%^!@#!!!!!!!





-G

[emersonbiggins]

Knowledge is the greatest weapon and one the elite fear above all else.

Well spoken. I must admit, this all resembles fascism far more than socialism. Unabashed socialism would be better than what we're getting now.

[eastbay]

Let's see:

Government owns:

bad mortgages - check
bad banks - check
bad car loans - check?

How long until we go ahead and formally adopt the hammer and cicle for our national symbol?

Oh man, let's hope it doesn't go that far here in the USA. Our history and culture might resist this drastic move and a period of strife could ensue... not like we're avoiding a period of strife and chaos anyhow.

But it's something we might keep in the back of our minds, just in case. Things will move one direction or the other, I'm afraid.

[mos6507]

Our history and culture might resist this drastic move and a period of strife could ensue...

Haven't most cultures resisted communism being imposed on it?

[eastbay]

Our history and culture might resist this drastic move and a period of strife could ensue...

Haven't most cultures resisted communism being imposed on it?

Some have and some haven't Mos.

Just like some have and some haven't resisted USA military occupation (imposed by force US style capitalism).

I seriously doubt actual personal car loans will get bailed out. That would be a serious stretch. Taxpayers would not like that one bit.

[Twilight]

Nope, the people are not being relieved of the liabilities, the companies are being relieved of the "assets". That is the silence that meets the question "where is my bailout?" and renders it rhetorical.

[Novus]

How long until we go ahead and formally adopt the hammer and cicle for our national symbol?

Why do you and others keep saying this is communism/socialism.

This is not socialism.

If this were socialism the government would let the corps fail and issue dole for the unemployed and state housing for the newly foreclosed homeless.

What is going on in American is Corporate Fascism.

This is the new American flag.

[ohanian]

The US government cannot afford any of these recent bailouts. Prepare now for hyperinflation. It's coming.

Bullshit. The Zimbabwean government is quite capable of printing trillions of dollars each month.

You expect me to believe that the United States Government is not capable of doing so? I find that hard to believe.

[EnergyUnlimited]

The US government cannot afford any of these recent bailouts. Prepare now for hyperinflation. It's coming.

Bullshit. The Zimbabwean government is quite capable of printing trillions of dollars each month.

You expect me to believe that the United States Government is not capable of doing so? I find that hard to believe.

So do you suggest that there is no hyperinflation in Zimbabwe?

[EnergyUnlimited]

How long until we go ahead and formally adopt the hammer and cicle for our national symbol?

So lets put that

into left top corner of your flag for now on.