{"id":1104,"date":"2008-12-12T15:20:15","date_gmt":"2008-12-12T20:20:15","guid":{"rendered":"http:\/\/www.jasetaro.com\/blog\/?p=1104"},"modified":"2008-12-12T16:26:57","modified_gmt":"2008-12-12T21:26:57","slug":"treasury-throws-auto-industry-a-life-line","status":"publish","type":"post","link":"https:\/\/www.jasetaro.com\/blog\/2008\/12\/12\/treasury-throws-auto-industry-a-life-line\/","title":{"rendered":"Treasury Throws Auto Industry a Life Line???"},"content":{"rendered":"

Damn! What is it with the Bush administration?<\/p>\n

Senate Republicans rightly stopped the auto industry bail last night and today the Bush Administration decides to use TARP funds to throw a life line to GM and Chrysler.<\/p>\n

From FoxBusiness<\/a>:<\/p>\n

Despite the abrupt death last night of bailout legislation in Congress, it seems the Big Three car makers will still get billions of dollars in rescue funds from Washington.<\/p>\n

The Treasury Department said Friday it will provide an unspecified amount of money to the cash-strapped industry, Fox Business Senior Washington correspondent Peter Barnes has learned from a source close to the discussions. It was not immediately clear from which funding source Treasury would get the money.<\/p>\n

Still, industry experts are deeply skeptical that emergency cash is the answer to the myriad ills plaguing the industry.<\/p>\n

\u201cThey\u2019ll get the money, but it\u2019s a very dangerous proposition. It\u2019s a very complicated mess,\u201d said David Magee, author of How Toyota Became #1.<\/p>\n

In the wake of the failure of a $14 billion bailout bill in the Senate Thursday night, the Treasury Department said Friday it was prepared to step in and prevent a collapse until Congress takes up the issue again. Read the rest…<\/a><\/p><\/blockquote>\n

It’s a sad reality but\u00a0 Billions in taxpayer dollars aren’t going to save the Big 3… They need to drastically restructure, bankruptcy is the only way for them get that done in the time frame required.<\/p>\n

Update:<\/strong> Larry Kudlow posting at the Corner<\/a> says there’s no deal yet:<\/p>\n

\n

Media reports and Wall Street investors are now assuming the Treasury will put up $15 billion in TARP money to keep the Detroit carmakers out of bankruptcy. But my sources tell me that the TARP deal is not done \u2014 not by a long shot.<\/p>\n

At a minimum, it\u2019s going to take the Treasury several days to walk through the financial numbers and gather all the facts before it takes any action. The Treasury wants to see the cash-flow data and get to the truth about GM and Chrysler. (Ford doesn\u2019t need the money.) And nothing will happen until these numbers are properly crunched. And the Treasury may well want to arrange for a built-in monitor \u2014 something that might even look like a car tsar \u2014 if any TARP money is dispersed.<\/p>\n

Senate sources tell me that any TARP-money allocation might include the very same conditions proposed by Tennessee Sen. Bob Corker in legislation that broke down in a marathon session in the Senate list night.<\/p>\n

So folks shouldn\u2019t count their TARP eggs before they\u2019re<\/span> hatched. And nothing is expected to be announced today.<\/p><\/blockquote>\n

Assuming Kudlow is right this is good news.<\/p>\n","protected":false},"excerpt":{"rendered":"

Damn! What is it with the Bush administration? Senate Republicans rightly stopped the auto industry bail last night and today the Bush Administration decides to use TARP funds to throw a life line to GM and Chrysler. From FoxBusiness: Despite the abrupt death last night of bailout legislation in Congress, it seems the Big Three […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[20,7],"tags":[313,51,314,160,315,323,177],"class_list":["post-1104","post","type-post","status-publish","format-standard","category-money-and-investing","category-politics","tag-auto-industry","tag-bush-administration","tag-chrysler","tag-congress","tag-ford","tag-gm","tag-treasury-department","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pfpI7-hO","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":1141,"url":"https:\/\/www.jasetaro.com\/blog\/2008\/12\/19\/son-of-a-bailout-bush-gives-auto-makers-174-billion\/","url_meta":{"origin":1104,"position":0},"title":"Son of a Bailout – Bush Gives Auto Makers $17.4 Billion","author":"Jeff","date":"December 19, 2008","format":false,"excerpt":"President Bush this morning morning announced a $17.4 billion bailout plan for auto makers. Under the terms of the plan GM and Chrysler would receive $13.4 billion in loans in December and January, with another $4 billion likely available in February. The deal is contingent on the companies' showing that\u2026","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1539,"url":"https:\/\/www.jasetaro.com\/blog\/2009\/02\/18\/not-just-no-but-hell-no-gm-chrysler-seek-216-billion-in-aid\/","url_meta":{"origin":1104,"position":1},"title":"Not Just No, But Hell No: GM, Chrysler Seek $21.6 Billion in Aid","author":"Jeff","date":"February 18, 2009","format":false,"excerpt":"General Motors and Chrysler have submitted their recovery plans submitted to the U.S. Treasury and are asking for another $21.6 billion in government aid. Not just no, but hell no... No amount of government aid is going to bring them back to profitability so long as the government forces them\u2026","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1088,"url":"https:\/\/www.jasetaro.com\/blog\/2008\/12\/11\/will-the-auto-industry-bailout-work\/","url_meta":{"origin":1104,"position":2},"title":"Will The Auto Industry Bailout Work?","author":"Jeff","date":"December 11, 2008","format":false,"excerpt":"I've been so focused on finishing up the projects I'm working before the holidays I've only been half attention to the news recently. I completely missed Holman W. Jenkins Jr. latest Wall Street Journal column: The Bailout That Won't Would you buy a car from Congress? By Holman W. Jenkins\u2026","rel":"","context":"In "Money & Investing"","block_context":{"text":"Money & Investing","link":"https:\/\/www.jasetaro.com\/blog\/category\/money-and-investing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1015,"url":"https:\/\/www.jasetaro.com\/blog\/2008\/11\/18\/cnsnewscom-union-workers-at-big-three-automakers-average-73-an-hour\/","url_meta":{"origin":1104,"position":3},"title":"CNSNews.com: Union Workers at Big Three Automakers Average $73 an Hour","author":"Jeff","date":"November 18, 2008","format":false,"excerpt":"The headline may be a little misleading but the article is worth reading: Union Workers at Big Three Automakers Average $73 an Hour By Pete Winn, Senior Writer\/Editor, CNSNews.com, Tuesday, November 18, 2008 Economists in Michigan, the long-time home of the auto industry, say they don\u2019t support the proposed multi-billion\u2026","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1292,"url":"https:\/\/www.jasetaro.com\/blog\/2009\/01\/04\/wsj-let-detroit-build-profitable-cars\/","url_meta":{"origin":1104,"position":4},"title":"WSJ: Let Detroit Build Profitable Cars","author":"Jeff","date":"January 4, 2009","format":false,"excerpt":"I'm doing a little catching up this weekend and trying to read all the two dozen or so articles I bookmarked over the past couple of weeks. One of the items I bookmarked was Holman W. Jenkins Jr. December 31st Op Ed piece in the Wall Street Journal \"Let Detroit\u2026","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3608,"url":"https:\/\/www.jasetaro.com\/blog\/2010\/10\/19\/big-spender-obama-has-now-borrowed-3-trillion\/","url_meta":{"origin":1104,"position":5},"title":"Big Spender: Obama Has Now Borrowed $3 Trillion","author":"Jeff","date":"October 19, 2010","format":false,"excerpt":"From CNSNews.com: It's official: The Obama administration has now borrowed $3 trillion, according to the U.S. Treasury Department. It took from 1776, when the United States became an independent country, until 1990, the year after the Berlin Wall fell signaling victory in the Cold War, for the federal government to\u2026","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/posts\/1104","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/comments?post=1104"}],"version-history":[{"count":0,"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/posts\/1104\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/media?parent=1104"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/categories?post=1104"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.jasetaro.com\/blog\/wp-json\/wp\/v2\/tags?post=1104"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}