Items of Interest:
Auto Chiefs Fail to Get Bailout Aid -- The chief executives of Detroit’s Big Three automakers departed Washington empty-handed on Wednesday night after two days of pleading for a financial lifeline on Capitol Hill.
As the public hearings and intense behind-the-scenes negotiations appeared to come to naught, the Senate majority leader, Harry Reid of Nevada, went to the floor seeking to bring up the Democrats’ plan to provide $25 billion in aid from the $700 billion financial bailout program. The Republicans objected, effectively killing the plan...
Rep. Ackerman: Auto Execs' Private Jet Travel Like Guy At ‘The Soup Kitchen In High Hat And Tuxedo’ — Today, the CEOs of the Detroit Big Three returned to Capitol Hill to ask for $25 billion in loans. Testifying before the House Financial Services Committee, General Motors CEO Rick Wagoner insisted …
Brian Beutler and Alternate Brain
Mitt Romney / New York Times:
Let Detroit Go Bankrupt -- IF General Motors, Ford and Chrysler get the bailout that their chief executives asked for yesterday, you can kiss the American automotive industry goodbye. It won’t go overnight, but its demise will be virtually guaranteed.
Without that bailout, Detroit will need to drastically restructure itself. With it, the automakers will stay the course — the suicidal course of declining market shares, insurmountable labor and retiree burdens, technology atrophy, product inferiority and never-ending job losses. Detroit needs a turnaround, not a check....
Discussion: NewsBusters.org, LiberalOasis, The Huffington Post, Because I said so, Emptywheel, American Thinker, The Swamp, www.redstate.com, Feministe, PERRspectives Blog, BuzzFlash.org, TigerHawk, Israpundit, Firedoglake, Swampland, StephenBainbridge.com, Hot Air, Townhall.com, Newshoggers.com, Boston Globe and A Stitch in Haste
Why General Motors Deserves Support - Much has been said about the impact of the credit crisis on U.S. auto makers, and whether or not the government should assist the industry during this extraordinary financial turmoil. In these discussions, many critics simply ignore the substantial changes that U.S. auto companies have already made -- changes much like those the critics are calling for as part of any aid package.
At General Motors, we have been responding to fierce competition here and abroad by transforming our business. Over the past decade, we have taken tough actions to cut costs ...
Big Three CEOs Flew Private Jets to Plead for Public Funds -- The CEOs of the big three automakers flew to the nation's capital yesterday in private luxurious jets to make their case to Washington that the auto industry is running out of cash and needs $25 billion in taxpayer money to avoid bankruptcy. ...
Barack Obama and the Automakers - Even before being sworn in, Barack Obama has confronted his first big test as president and passed it with flying colors.
The test is the urgent request of Detroit's Not-So-Big Three automakers for a $25 billion "bridge loan" to get them through what they want us to believe is a "short-term liquidity crisis" ...
First Bankruptcy, Then Possibly a Bailout -- Should billions of taxpayer dollars be used to bail out the automobile industry?
Hard-line economists argue that Detroit lost its way decades ago, and that government support for this industry will be worse than wasteful. Industrial policy advocates disagree, arguing that millions of jobs are at stake and that a General Motors bankruptcy would be a national disaster.
There is a middle path between bailout billions and car company catastrophe: the possibility of limited government aid after automobile companies have entered Chapter 11...
The Future of the Auto Industry -- Tony Cervone, a spokesman for General Motors, has a warm and friendly way to summarize his ailing company’s ongoing dance with disaster.
“The fact is we’re looking at a short-term liquidity crisis that needs a bridge loan,” Mr. Cervone said this weekend to The Detroit Free Press. To him, G.M. is merely in a temporary bind....
Julie Hirschfeld Davis / Associated Press:
Finger-pointing begins as Senate nixes auto vote
How Obama Can Energize The Economy - President-elect Barack Obama faces calls for a “stimulus” package to lift the flagging US economy. Recent asset price declines and job losses underscore these calls. Given the ineffective design of the most recent stimulus package, he would be wise to take a deep breath, then focus on several guidelines and four suggestions for action...
- How To Improve Our Infrastructure - David Leonhardt, New York Times
- 2009 Will Be the Nightmare on Main Street - Nicholas Bloom, VoxEU
- There's Nothing Left for The Fed To Do - Irwin Kellner, MarketWatch
- Reversal of Fortunes Between Stocks and Bonds - Randall Forsyth, Barron's
- Best Housing 'Bailout' May Be No Bailout - Shawn Tully, Fortune
- Debt Man Walking: The Economy's Fatal Flaw - John Judis, New Republic
- The Real Economic Threat: Distorted Prices - Rich Karlgaard, Forbes
- Where Is The Bottom? - Nouriel Roubini, RGE Monitor
- Are We Reliving the 1930s? - Vanessa Drucker, Fund Strategy
- Nations Competing With Tax Cuts, Not Increases - Steven Malanga, RCM
- A New Approach to Fannie and Freddie - Editorial , Los Angeles Times
- Tarp the Troubled Asset Relief Program - Larry Kudlow, RealClearMarkets
- It Isn’t a TARP without Troubled Assets To Cover - C. Baum, Bloomberg
- Skeptical Paulson Becomes Bush's General - David Cho, Washington Post
- GE Finance Does Not Bring Good Things To Life - David Merkel, Aleph
- Why Everyone Hates General Motors- Evan Newmark, Deal Journal
- Falling Gas Prices Provide a Stimulus, But How Much? - Econbrowser
- Oil-Tanker Piracy Shows Supply Vulnerability - Editorial, Investor's Daily
- Fossil Fuels, and the Great Energy Delusion - Vaclav Smil, The American
- Helping Underwater Homeowners - Martin Feldstein, Wall Street Journal
- Mixed Grades for Hank Paulson on the TARP - Colin Barr, Fortune
- A 'TARP' For Distressed Companies - Jonathan Henes, Forbes
- Hedge Funds Need to Find Better Way to Say Sorry - M. Lynn, Bloomberg
- Beward of Hedge Funds' Washington Whispers - David Weidner, MktWatch
- Our Spendthrift States Don't Need a Bailout - Steve Malanga, WSJ
- Regulation Should Be International - C. Reinhart & K. Rogoff, Fncl Times